ORIX to Invest in Wako Pallet, a Major Seller and Leaser of Logistics Equipment
Sep 27, 2019
TOKYO, Japan – September 27, 2019 – ORIX Corporation (“ORIX”) today announced that it has acquired all issued shares of Wako Pallet Co., Ltd. (“Wako Pallet”), a major Japanese seller and leaser of logistics equipment.
Wako Pallet is a major Japanese company specializing in logistics equipment such as pallets, cage trolleys, nesting boxes, and freezer/refrigerator containers. It has four offices located throughout Japan as well as approximately 80 logistics centers (including seven major self-owned centers). It has constructed business networks with logistics operators in mainly the Kanto, Kansai and Chubu areas. Wako Pallet satisfies customers’ needs with a rich lineup of logistics equipment including equipment developed in-house.
As the EC market in the logistics industry expands, the small-lot ordering of goods and increasingly frequent delivery modes are becoming more common. Meanwhile, a labor shortage has arisen amongst truck drivers and warehouse workers, resulting in demand for logistics equipment with increasingly advanced functions and labor-saving techniques. Under the Ministry of Land, Infrastructure, Transport and Tourism’s “General Logistics Policy Outline*,” initiatives to improve logistics productivity, such as improving truck operation rates and shortening cargo handling work are underway. It is anticipated that the logistics equipment market will continue to grow going forward.
ORIX has business relationships with logistics operators throughout Japan created through its development and operation of major logistics facilities and rental business for equipment such as automatic conveyance robots. Through this investment, the corporate sales networks and business expertise of the ORIX Group will be utilized while maintaining Wako Pallet’s operational independence to contribute to its steady growth. ORIX will also support the smooth succession of business and enhanced corporate governance at Wako Pallet.
By drawing on the expertise cultivated by the ORIX Group up until this point, ORIX will continue to support the growth of companies and industries that maintain stable business foundations, develop high-quality technologies and services, and are also expected to further expand into the future.
*Source: Ministry of Land, Infrastructure, Transport and Tourism, Cabinet Decision in July 2017
|Name||Wako Pallet Co., Ltd.|
|Address||3-14-12 Minamihorie, Nishi-ku, Osaka-shi, Osaka|
|Name of representative||Kenzo Hayama (75 years)|
|Date of establishment||March, 1971|
|Business locations||4 domestic locations|
|Number of employees||93 (as of December 31, 2018)|
|Description of business||Sales and rental of logistics equipment|
|Revenue||Approx. 11.8 billion yen (for the year ended February 28, 2019)|
■Seles and rental equipment (example)
Corporate Planning Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 37 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of March 31, 2019)
Caution Concerning Forward Looking Statements:
These documents May contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2018 – March 31, 2019.”
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