Press Release

Nippon Express (Malaysia) completes construction of Shah Alam Logistics Center

March 9, 2020

Designed to meet a diversity of logistics needs for halal, pharmaceutical and other products

Nippon Express (Malaysia) Sdn. Bhd. (Akiya Hayase, President), a local subsidiary of Nippon Express Co., Ltd. (Mitsuru Saito, President), has completed construction of the Shah Alam Logistics Center, the Nippon Express Group's most extensive single-structure multifunctional logistics warehouse outside Japan, in the Shah Alam Industrial Park in the Malaysian state of Selangor, and the Center will begin operations from Monday, March 9.

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  (Exterior of new warehouse)
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  (Warehouse interior)

A rise in Malaysia's national income has driven remarkable growth in personal consumption, and the increased distribution of consumer goods has led to expectations of growing needs for more sophisticated domestic logistics and warehousing services.

The Shah Alam Industrial Park that hosts this newly opened Center is located near the capital city of Kuala Lumpur, Malaysia's largest consumption area, and very favorably situated as a logistics hub, with easy access to Malaysia's main sea gateway Port Klang and to Kuala Lumpur International Airport.

[Features of the Shah Alam Logistics Center]

• This Center is Nippon Express' largest warehouse outside Japan, and its location near key consumption areas and an international seaport and airport will be leveraged to meet a full range of logistics needs - e.g., vendor-managed inventory (VMI) and just-in-time (JIT) delivery - with cutting-edge high-quality services.
• Its bonded warehouse functions enabling non-resident inventory to be stored will allow the Center to serve as a hub for Asia and the Middle East.
• The Center plans to obtain halal certification in anticipation of future growth in the Muslim population, forecast to exceed one-fourth of the world's population by 2030, and of a consequent expansion of the global halal market. Accordingly, an area for ritually cleansing trucks and cargo containers has been incorporated within the facility.
• To reinforce the Nippon Express Group's logistics network for pharmaceuticals, designated a priority industry in the "Growth Strategy for Core Businesses" detailed in the Group's Corporate Strategy, the Center intends to obtain certification for Good Distribution Practice (GDP), a standard for proper distribution of pharmaceutical products.
• A rampway will permit vehicles to load/unload on both the 1st and 2nd floors (berth spaces for 45 vehicles)

Nippon Express (Malaysia) will employ this Center to further bolster its logistics functions and thereby meet the increasingly diverse and sophisticated logistics needs of customers, including domestic sales logistics for consumer goods, manufacturing logistics (JIT delivery), temperature-controlled storage using air-conditioned facilities, and storage/delivery of halal products.

[Profile of new facility]

Name	Nippon Express (Malaysia) Sdn. Bhd. Shah Alam Logistics Center
Address	Lot 72, Persiaran Jubli Perak, Seksyen 22, 40300 Shah Alam, Selangor Darul Ehsan, Malaysia
Structure	Two-story reinforced concrete structure
Lot area	59,183m2
Total floor area	63,421m2 (Breakdown) Warehouse area: 49,879m2 (including an 8,560m2 air-conditioned facility) Office: 3,903m2 Eaves area, etc.:9,639m2
Principal equipment	Raised-floor platform, 1st/2nd floor truck berths (rampway approach), 24-hour security, full CCTV coverage, emergency power generator, dust-resistant flooring
Start of operations	Monday, March 9, 2020