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Nippon Express has begun transporting auto parts for a joint venture created by Dongfeng Motor Group and U.S. engine manufacturer Cummins Engine. The Japanese company, which aims to expand its business in China by offering the services to other automakers and firms there, says it will establish an auto parts distribution network that blankets China. It plans to boost the number of client parts makers it serves to approximately 130 by the end of the year.
The firm will also ship parts from Japanese and U.S. manufacturers by using its extensive logistics networks in those countries. It expects the deal to induce orders from Japanese automakers operating in China, as Dongfeng Motor Group has joint ventures with both Nissan Motor and Honda Motor.
Currently, Nippon Express China's automotive sector operations are centered in Guangzhou, where it accumulates parts from various sites nationwide for delivery to automakers in Japan and around the globe.
Nippon Express will initially offer shipping services for 14 automotive parts suppliers in eastern Hubei province before expanding the operation to other auto-related sectors in the mainland. Regularly scheduled trunk line transportation and secondary transportation road freight service is available from Nippon Express motor terminal transfer bases to 80 cities every day. The company maintains 100 logistics service bases in mainland China with over 3000 employees today.
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