🧊 Cold storage roadmap

Welcome back to CubeCold News where we cover the latest developments in the cold chain industry and temperature-controlled logistics.

In today’s edition:

  • A cold storage roadmap

  • Lineage announces July 25th IPO

  • Panasonic to acquire all shares of Area Cooling

  • Taiwan cold chain industry explores the Philippines market

News

Cold storage roadmap The cold storage industry is poised for significant growth and innovation in 2024, building on a record-setting year of new developments in 2023.

  • The global cold storage construction market is projected to reach over $32 billion by 2030, with a compound annual growth rate of 13.6%.

  • The United States is expected to lead this growth, with demand for cold storage space continuing to outpace supply over the next few years.

  • Key trends shaping the industry include the expansion of cold storage networks, particularly in secondary markets and ports, increased adoption of automation and advanced technologies, and a focus on energy efficiency and sustainability.

  • Major players like Lineage Logistics, Americold, and newer entrants are investing in larger, more technologically advanced facilities to meet growing demand from e-commerce, food processing, and pharmaceutical sectors.

  • The industry faces challenges such as high construction costs and labor shortages, but is adapting through innovative designs, multi-tenant facilities, and the integration of automation solutions.

  • As the cold storage sector evolves, it remains a critical component of the global supply chain, with its resilience and adaptability positioning it for continued growth and investment in the coming years. (link)

Lineage announces July 25th IPO Lineage, Inc., the world's largest temperature-controlled warehouse REIT, has announced the terms for its initial public offering (IPO), set to take place on July 25, 2024.

  • The company aims to raise $3.6B by offering 47 million shares priced between $70 and $82 per share, potentially valuing the company at up to $19.2B.

  • This IPO is expected to be the largest of the year to date in the U.S. market.

  • The proceeds from the IPO will be used primarily to repay existing debts, fund employee cash grants, and cover transaction expenses, with the remaining funds allocated for general corporate purposes.

  • Lineage's shares will be listed on the Nasdaq under the ticker symbol "LINE".

  • Lineage's extensive network includes over 480 facilities with 3 billion cubic feet of capacity, serving a diverse customer base of more than 13,000 food retailers, manufacturers, and distributors. (link)

Panasonic reaches agreement to acquire all shares of Area Cooling, a Polish refrigeration equipment manufacturer Panasonic has announced an agreement to acquire all shares of Area Cooling Solutions, a Polish manufacturer of refrigeration equipment.

  • This strategic acquisition aims to bolster Panasonic's condensing unit business in Europe and support its global expansion efforts.

  • The move aligns with Panasonic's commitment to environmental regulations, such as the Kigali Amendment to the Montreal Protocol and the European Union's F-Gas Regulation, which mandate a shift to refrigerants with lower global warming potential.

  • Area Cooling, established in 1995, specializes in innovative technologies, including inverter-controlled and CO2 condensing units, which complement Panasonic's existing product lines.

  • The acquisition will enable Panasonic to leverage synergies between the two companies, enhance local manufacturing capabilities in Europe, and better meet customer needs.

  • The transaction, pending regulatory approvals, excludes Area Cooling's distribution business for compressors and other HVACR components. (link)

Taiwan cold chain industry explores Philippines market The Taiwan External Trade Development Council (TAITRA) is spearheading an initiative to introduce Taiwan’s advanced cold chain technology to the Philippines.

  • In collaboration with the Taiwan Cold Chain Association (TCCA) and the Cold Chain Association of the Philippines (CCAP), TAITRA aims to bolster the cold chain industry's growth in the Philippines.

  • On July 30, 2024, the "Cold Chain Seminar & Business Matchmaking Meetings," will take place in Manila. This event will feature prominent Taiwanese companies such as Shiuh Ger, Ho Hong Works, Jiawei, Just Shine, M.S.C., and Yamato.

  • The companies will showcase cutting-edge products and services, aiming to foster collaborations and technological innovations in the Philippine market.

  • The seminar and matchmaking meetings are expected to provide a platform for networking, knowledge exchange, and the establishment of strategic partnerships. (link)

Other headlines

Americold Realty Trust, Inc. will release its Q2 2024 earnings on August 8, 2024.

Renault Trucks to pilot electric refrigerated lorry in Amsterdam.

Maersk has launched the SH3 ocean shipping service between China and Bangladesh.

MSC’s MEDLOG breaks ground on new cold storage facility in Georgia.

Nearshoring can be an ally of cold chains, says Kryotec.

USDA announces investments to strengthen American food supply chains.

Book Review: Refrigeration and the Many Virtues of the Cold Chain

That’s it for today!

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