CEO : Yoon Chun Sung
LX International, 58, Saemunan-ro, Jongno-gu, Seoul, 03184, Korea
COPYRIGHT©2021 BY LX International Corp.
- Construction of an eco-friendly complex logistics center as large as 30 soccer fields with a total business cost of 350 billion KRW
- Establishing “Eco&Logis Busan Corp.” as a subsidiary company… Planning to complete and operate the eco-friendly complex logistics center in 2025
- Active promotion of the development and operation of the logistics center based on a new growth engine and the acceleration of the business portfolio innovation
LX International plans to construct an eco-friendly complex logistics center in Busan, which will be 216,369m2 wide that is as same as 30 soccer fields. The purpose of this project is to promote the logistics center development and operation as a new growth engine and profit source of the company.
On Feb 23, LX International held a board meeting at the headquarters in Seoul, Korea to approve the case of investing 45 billion KRW for the establishment of Eco&Logis Busan with the purpose of development and the operation of an eco-friendly logistics center.
The project scale is 350 billion KRW in total, with plans to develop and operate a logistics center that has one basement level and five ground floors with a 59,969m2 lot area and a 216,369m2 total floor area in the international industrial logistics city of Gangseo-gu, Busan. Designing and licensing will be completed until the first half of next year, and the facility is scheduled to be completed and operated in early 2025.
Last November, LX International concluded an MOU with the city of Busan and the Busan-Jinhae Free Economic Zone Authority regarding three-party business cooperation and investment. The major agreements indicate that LX International would strive for the establishment of a logistics center, and regional job creation, while the city of Busan and the Busan-Jinhae Free Economic Zone Authority would provide active support for any necessary administrative procedures including business licensing, etc.
To be specific, LX International aims to develop an eco-friendly complex distribution center based on its strategy to expand investments in green businesses.
A safe working environment will be created through energy reduction with renewable energies, creating a clean working environment complete with eco-friendly finishing materials, and the use of an advanced monitoring system. Besides, due to the possible use of a low temperature warehouse in addition to a regular warehouse, a partnership with a company that is specialized in cold chain is also under review.
Not only due to its global trading competence in various kinds of items including industrial materials and electronic components but also based on the gained experience in the previous SCM business and infra investment and development, LX International is planning to actively promote the development and operation of a logistics center as new growth engine and profit source of the company.
In the meantime, the demand of the domestic logistics center is expected to rise continuously mainly around the major cities of Korea due to the development of the e-commerce market and increased quantity of shipment.
According to the national market research institutions, the e-commerce market in Korea that has made an annual average growth of 20% every year in the past decade will continue to expand with a 14% growth for each year so that its total scale would exceed 24 billion KRW in 2023. Also, it is estimated that the quantity of products being shipped nationwide will be increased by 12% year on year.
Jun-Hyung Kim head of the Green Business Division of LX International, stated that the demand for the new large logistics center would certainly increase because the Busan and Gyeongsang region have the greatest potential logistics demand in the nation, and that the Busan international industrial logistics city where the new logistics center will be constructed is close to Busan New Port, which makes access to all parts of the country including Seoul and the capital area is extremely favorable.
Last year, LX International achieved its highest profit ever, and it continues to accomplish business portfolio innovation mainly based on the green industries with ESG management. The new business plans of LX International this year include ▲nickel asset securement as the key material of batteries ▲ entry to the eco-friendly ingredient market including biodegradation plastic (PBAT) ▲ accelerating eco-friendly green business including the power generation, resource circulation, carbon reduction, etc. ▲ development of logistics center and the establishment of the operation business base through the logistics base development and investment ▲development and the promotion of new promising business models in the fourth industrial era, etc.