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2023.07.07
CJ Logistics to invest 600 billion won to build logistics centers in U.S.
BY SEO JI-EUN, Korea JoongAng Daily - CJ Logistics will invest 600 billion won ($459 million) to build logistics centers in the United States in cooperation with state-run Korea Ocean Business Corporation (KOBC), marking the first case in which private and public companies will jointly build such centers abroad.
The construction of
these logistics centers is scheduled to commence in the first quarter of the
upcoming year, with a phased completion anticipated between the first half of
2026 and 2027.
The logistics
centers will be located on sites owned by CJ Logistics America, including
Elwood and Des Plaines in Illinois, as well as Secaucus in New Jersey. The
three areas — totaling 360,000 square meters (88.6 acres) — are located near
major logistics and distribution hubs like Chicago and New York, the company
explained.
They are established
to serve as a strategic export base for Korean companies and to expand the
global reach of the national logistics supply chain.
While CJ Logistics
will provide the land for the project, KOBC will be responsible for finding
funding from financial companies.
The establishment of
these logistics centers marks the first-ever collaborative effort between a
government agency and a private enterprise to construct a logistics network
overseas.
“The North America
Project holds significant meaning as it represents a joint effort between a
government entity and a private enterprise to support Korean companies' entry
into the United States, the world's leading economic market, and raise their
global competitiveness,” CJ Logistics wrote in a statement.
Korean companies
have recently made investments in various sectors such as electric vehicles,
batteries and semiconductors in the United States.
"We are
committed to supporting Korean companies and e-commerce sellers as they enter
the U.S. market,” said Kang Sin-ho, CEO of CJ Logistics.
"The
construction of logistics hubs in the United States will enhance the
competitiveness of Korea's global supply chain and create value-added supply
chain services through integration with maritime logistics,” Kim Yang-soo, CEO
of KOBC, said.
American Chamber of Commerce in Korea
Address: 15Fl., Two IFC, 10, Gukjegeumyung-ro, Yeongdeungpo-gu, Seoul 07326, Korea
Name of Representative: James Kim
Business Registration No: 771-82-00210
E-Commerce No: 2019-서울영등포-0027
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