Expanding Cold Storage in Thailand! Logisteed Targets Food and Non-Japanese Clients

Logisteed is expanding its cold storage facilities in Thailand to focus on food and consumer goods.

The company is shifting its strategy away from its heavy reliance on the automotive industry, which has been slowing down.

With this new direction, Logisteed aims to attract more non-Japanese clients and adapt to the evolving logistics needs in a competitive market.

Logisteed to Open Large-Scale Cold Storage Facility in Bangkok

Logisteed announced plans to open a new large-scale cold storage warehouse in the suburbs of Bangkok by the end of 2024.

The facility, spanning 10,000 square meters, will primarily handle food and consumer goods.


This move signals a significant shift in the company’s strategy, as it seeks to diversify its logistics services beyond the automotive industry, which has seen a decline in demand for parts storage and transportation in recent years.

Transition Away from Automotive Industry Dependence

Logisteed’s business was traditionally centered on supporting the Japanese automotive industry in Thailand.

However, with the automotive sector’s growth stagnating, the demand for logistics services related to parts storage and transportation has been decreasing.

In response, Logisteed is expanding into new fields like food and consumer goods, where logistics needs are expected to rise in the coming years.

Targeting Non-Japanese Clients for Further Growth

In a notable shift from its previous strategy, Logisteed is also looking to attract non-Japanese clients in Thailand.

The company has set up a dedicated division for non-Japanese customers, reflecting its intention to cater to a broader market.


This approach aligns with the growing income levels and rising consumer demand in the region, as well as the increased interest in high-quality logistics services among local and international businesses.

Strengthening Cross-Selling with Forwarding Services

Logisteed is also focusing on enhancing its cross-selling strategy by integrating its forwarding services with the new cold storage operations.

By offering comprehensive logistics solutions that combine warehousing and forwarding, the company aims to strengthen its value proposition and differentiate itself in an increasingly consolidated market, where large-scale mergers and acquisitions are becoming more common.

Strategic Direction Driven by KKR

Logisteed’s new strategic direction may also be influenced by its acquisition by the U.S. investment firm KKR.

The company’s expansion into non-automotive sectors and its focus on non-Japanese clients could be part of a broader plan to boost its competitiveness and expand its global footprint.


This shift demonstrates Logisteed’s commitment to providing high-quality logistics services to a wider range of customers.

Conclusion

Logisteed’s expansion into the cold storage business in Thailand represents a strategic shift to reduce its dependence on the automotive industry and target new markets.

With its focus on non-Japanese clients and integrated logistics solutions, the company is well-positioned to meet the growing demand for diverse logistics services in the region.

The new cold storage facility, combined with its enhanced cross-selling strategy, will likely play a key role in its future growth.