Press Release

Nippon Express (China) concludes logistics business partnership memorandum with Jointown Pharmaceutical Group Logistics

Tie-up aims to strengthen pharmaceuticals transport in China

Nippon Express (China) Co., Ltd. (Tatsuo Sugiyama, Chairman; hereinafter, "NE China"), a subsidiary of Nippon Express Co., Ltd. (Mitsuru Saito, President), concluded a business partnership memorandum with Jointown Pharmaceutical Group Logistics Co., Ltd. (hereinafter, "JPG Logistics"), a member of the Jointown Pharmaceutical Group Co., Ltd. (hereinafter, "JPG"), a major Chinese pharmaceuticals distributor/wholesaler, on Friday, December 18, 2020.

JPG Logistics is a JPG company specializing in pharmaceutical logistics that runs, manages and supports the entire group's logistics operations as well as its logistics centers at the provincial and regional city level, and it provides China's domestic pharmaceutical distribution market with enhanced transport services.

NE China had been considering a business partnership with JPG Logistics to cover those operational aspects of pharmaceuticals logistics in which foreign companies are not allowed to participate under China's Good Supplying Practice (GSP) standards governing pharmaceutical supply and quality control. NE China has already been working together on transport efforts with JPG Logistics during the coronavirus pandemic, and it has developed a system enabling pharmaceutical products in China to be delivered overseas and for foreign pharmaceutical products to be delivered to regional cities in China.

This business partnership will allow Nippon Express to offer services that meet customer needs for safety-conscious pharmaceutical transport by combining its own pharmaceutical logistics services utilizing its global network outside China with JPG's domestic transport network within China.

Nippon Express will continue upgrading its services to meet increasingly sophisticated and varied pharmaceutical transport needs as it steps up its efforts both inside and outside Japan on behalf of the pharmaceutical industry, which has been positioned as a priority industry in the Company's Corporate Strategy.