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Maersk Container Industry (MCI) has withdrawn from the dry container business and ceased operations at its production facility in Dongguan, China due to challenging market conditions.
The company has claimed that the dry container market has been under enormous pressure for some time and it has decided instead to put all of its efforts into its reefer business.
Sean Fitzgerald, CEO of MCI, said: “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 [2018] due to the tough market conditions.
“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.”
Reefer volumes have continued to grow due to global demand for fresh produce and other commodities and the company has claimed that currently one in three reefers used in global perishable transportation uses MCI’s Star Cool container technology.
The company has also recently entered into the Internet of Things (IoT) space with the recent launch of Sekstant Global Guidance solutions, which aims to transform reefer operations through the use of operational data.
Fitzgerald said: “MCI’s strategy is to grow in cold chain where our Star Cool technology is a clear leader. 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.”
MCI has stated that the decision will not impact any of its other facilities and these will continue to operate as usual and support the needs of their customers.