Maersk Container Industry (MCI) has revealed that it is now "fully focused" on growing its cold chain business, meaning it is formally exiting the dry container business.
According to MCI, one out of three refrigerated containers used in global perishable transportation uses Star Cool container technology manufactured by MCI, and with the recent launch of Sekstant Global Guidance solutions, the company is entering the IoT space, transforming reefer operations through the use of operational data.
“MCI’s strategy is to grow in cold chain where our Star Cool technology is a clear leader," said Sean Fitzgerald, CEO of Maersk Container Industry. "This growth requires focused investment in the best products and services.
“By putting all of MCI’s resources on the cold chain business will ensure sustainable growth and continued investment in the best products and services for our customers," Fitzgerald added.
MCI noted that while the market for dry containers had been challenging and under "enormous pressure" for some time, reefer volumes continued to grow due to global demand for fresh produce and other commodities.
This led to the the decision to exit the dry container business, which includes ceasing operations at the company’s production facility in Dongguan, China. The factory been idle since the beginning of December 2018.
“Regrettably, our decision to focus on the cold chain business will impact our factory in Dongguan which has been idle since the beginning of December due to the tough market conditions,” Fitzgerald added. “We are committed to taking care of our colleagues that are impacted by this difficult decision and we thank them for their dedication and hard work over the years.”
The decision will not impact any of MCI’s other facilities which will continue to operate as usual and support the needs of its customers.