Hyundai Glovis, Malaysia’s Lion Group to enter ASEAN logistics market

Hyundai Glovis Co., the logistics unit of South Korea’s Hyundai Motor Group, said on Wednesday it has signed an initial agreement with Malaysian conglomerate Lion Group to jointly advance into the Southeast Asian logistics and distribution market.

Under the memorandum of understanding (MOU), Hyundai Glovis will help Lion Group build a smart logistics system across the Malaysian retail-to-steel conglomerate’s business lines. They also agreed to jointly seek business opportunities in the Association of Southeast Asian Nations (ASEAN) region.

Hyundai said its advanced logistics management system will be applied to Lion Group's key business units, starting with the steel business. And then, they will expand their partnership into other areas such as retail to build a cost-effective and speedy warehouse management and transportation system.

With annual sales of $3 billion in 2021, Lion Group operates in various business sectors such as steel, distribution, property development and agriculture in more than 10 countries around the world, including Southeast Asia, China and the US.

Hyundai Glovis, which also handles car shipping for automakers, including Hyundai Motor Group’s two affiliates, Hyundai Motor Co. and Kia Corp., has been seeking to expand its presence in the Southeast Asian logistics market.

It established Vietnamese operations in 2019 followed by a subsidiary in Indonesia last year.

In May of this year, the company launched a local corporation in Thailand through a joint venture.

Write to Hyung-Kyu Kim at khk@hankyung.com
In-Soo Nam edited this article.