TOKYO (04/11/2000) - Computer Associates International Inc. and Nissho Iwai Corp., one of Japan's largest general trading companies, plan to jointly launch a business-to-business electronic marketplace, the two companies announced today.
In May they will form a Japan-based joint venture company, Cynomix Corp., to operate the planned service which is expected to begin operations in July or August this year, executives from the companies said at a Tokyo press conference this morning.
Cynomix, which will be equally owned by the two companies, expects to achieve a customer transaction value of 500 billion yen (US$4.7 billion) within three years and 1.8 trillion yen within five years of launch.
Initially targeting the Japanese marketplace, Cynomix plans to become a global trade portal. Its first links with companies outside of Japan will come through connections to other Nissho Iwai affiliated online trading marts such as Asia Trade Alliance.com, a planned joint company with Indonesia's Sinar Mas financial group, CommerceOne and others. In addition, the service will have a domestic link with eBisTrade Inc., a joint venture established in March by Nissho Iwai with NTT-ME Information Xing Inc, the companies said.
Cynomix plans to offer a service that goes several steps beyond a simple web-based trading place. Through its link with Nissho Iwai, the service will offer additional services such as invoicing, supply chain management, financing services, trading insurance and logistical support.
Nissho Iwai is a major Japanese general trading company. Established more than 100 years ago, the company has more than 35,000 employees in 170 offices worldwide and more than 600 subsidiaries and affiliated companies within its business group operating in areas as diverse as steel production, broadcasting, consumer foodstuffs and housing. It is this diversity that the company plans to bring to the new Internet venture to offer the value added services.
For its part, Computer Associates will supply its "Jasmine ii" electronic business platform to handle the exchange of information between the marketplaces. The company's Neugents technology will help match buyers and sellers and streamline logistics through functions such as deciding the best shipping route.
Computer Associates Japan, in Tokyo, can be found online at http://www.caj.co.jp/. Nissho Iwai, also in Tokyo, can be found online at http://www.nisshoiwai.co.jp/.