The Strategist

Japan's largest bank MUFG to buy stocks of unsold goods from companies



07/06/2022 - 11:09



The largest bank in Japan, Mitsubishi UFJ Financial Group (MUFG), will establish a special division called MUFG Trading, which will buy inventory from manufacturing firms that they are unable to sell and do not have a place to store, according to the Japanese news agency Nikkei.



ykanazawa1999
ykanazawa1999
It is anticipated that the bank will purchase a range of goods from producers, including food and semiconductors, keep them, and then resell them later.

The price of extra storage has now driven up costs for businesses that are already struggling with inflation, a sluggish economy, and declining customer demand. MUFG plans to profit from the price differential between the acquisition and sale of goods while also assisting businesses in dealing with the looming overstocking situation.

A record amount of goods had amassed in the warehouses of the world's largest corporations as a result of the decline in consumer demand and the ongoing global logistics issues. A record for the past ten years, the projected total value of goods in the warehouses of 2,349 major industrial businesses (including Ford, Toyota, Samsung, Asus, and others) at the end of March was $1.87 trillion.

source: asia.nikkei.com
 




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