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WORLD OF INDUSTRIES - LOGISTICS 1/2017

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WORLD OF INDUSTRIES - LOGISTICS 1/2017

BLG recognizes a great

BLG recognizes a great potential in the Malaysian market GLOBAL BUSINESS The core competence of BLG Logistics is in automotive, contract and container logistics, where we supply fully integrated logistical system solutions. BLG is active in 15 countries around the world, and over the past 16 years has developed from a locally active enterprise in Northern Germany to a global logistics service provider. Today, our company employs over 16,000 people in Europe, America, Africa and Asia. Its scope is extended even further by cooperation agreements, subsidiaries and shareholdings. In 2006 we expanded our range through a joint venture in Malaysia: BLG Logistics and the Malaysian logistics service provider MISC Integrated Logistics Sdn Bhd (MILS), a subsidiary of the Petronas Group, teamed up to win a tender for a German carmaker. Since then, our joint venture has been performing plant logistics functions for our customer in Pekan, on the east coast of Malaysia. Our previous partner changed in 2016, so that BLG is now working with the logistics service provider Swift Haulage SDN BHD as its new joint venture partner. This new joint venture is doing business under the name BLG Swift Logistics Sdn Bhd, and continues to perform plant logistics for our customer in Pekan just as before. We complement each other ideally: Swift contributes expertise in the areas of transport and forwarding, while BLG is a recognized expert for cross-sector management of logistics warehouses. When we entered the Malaysian market in 2006, a lot of OEMs were looking for logistics partners with a high level of expertise locally. Thus, we recognized early on that the rapidly growing Southeast Asian region represented an attractive and strategically advantageous market for BLG. The excellent infrastructure and market situation, Malaysia’s political and economic stability and this nation’s extremely internationally-oriented culture were ideal prerequisites for entering this market. The developments of the past years have confirmed our estimation of the market. Since our joint venture was founded in 2006, we’ve succeeded in acquiring many top-level customers, and currently employ over 80 people at four locations. In Pekan, we manage our customer’s vehicle distribution center (VDC), with space for around 1,000 cars and trucks: we receive the vehicles from production, move them to their storage location and organize the transport of the vehicles to Malaysian dealers. We are convinced that Malaysia will remain an important market in the Southeast Asia region In Port Klang, our joint venture operates its own VDC for renowned international car makers. This facility also includes a bonded warehouse. The warehouse and outdoor areas can accommodate up to 2,000 vehicles, which are stored, maintained and serviced by BLG Swift Logistics. Our joint venture also transports the vehicles to dealers throughout Malaysia. Besides these locations, BLG Swift also operates in Kulim, in northeastern Malaysia. Just as in Pekan, we provide factory logistics for a major customer from the automotive industry, and perform storage, maintenance and technical services in a facility that accommodates over 400 vehicles. We also organize domestic transport to the respective dealers. The fourth pillar of BLG Swift Logistics is located in Glenmarie, where we operate a spare-parts warehouse for the Hyundai, Ford and Jaguar Land Rover brands of our customer Sime Darby Motors that comprises 5,000 square meters of indoor warehouse space. We also deliver the spare parts in the Kuala Lumpur region using our own trucks. Last year, we posted moderate growth across our entire portfolio of current business. For 2017, our focus is on developing our joint venture further and achieving growth through new business. At present, our customer structure ties us very closely to the automotive industry. Thus, we are aiming to expand our customer portfolio to further industries in the near future. We are convinced that Malaysia will remain an important market in the Southeast Asia region, in spite of the current difficult economic situation. Despite some uncertainty with respect to the political and economic development in the coming year, we are entirely optimistic about 2017 and how it will develop for BLG, and we are working towards further growth. www.blg-logistics.com Thomas Leiber, previously Director Overseas East and responsible for the activities of BLG L Logistics in Asia, assumed the general management of the BLG joint venture on site in Malaysia at the end of 2016, relocating from Bremen to BLG’s Malaysian headquarters in Port Klang WORLD OF INDUSTRIES – INTRALOGISTICS & DISTRIBUTION 1/2017

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