SFA to supply Coupang with logistics automation kits

SFA was in final negotiations with e-commerce giant Coupang to supply logistics automation equipment, TheElec has learned.

The kits will be used at Anseong 8 Center at Gyeonggi Province. Coupang will likely place the order this month.

The deal is likely worth tens of billions of won as SFA is holding talks to supply lifts, conveyors, sorters, vertical conveyors and auto-scanners.

Anseong 8 Center can handle 100,000 orders per day.

Coupang has previously used kits from Switzerland’s Interroll at its logistics center.

It SFA wins the order, the e-commerce giant will likely use more kits from South Korean companies for future centers.

South Korean companies can offer better after-sales service and offer kits at a lower price point.

Coupang has around 170 logistics centers nationwide. The firm had said back in March went public in New York that it plans to spend over 1 trillion won in logistics.

SFA is also eyeing automation kits for larger logistics centers that can handle between 400,000 to 500,000 orders per day.

SFA is eyeing supplying logistics equipment to other commerce companies such as Daiso, CU and E-Mart.

Coupang was currently very satisfied with the performances of SFA’s kits, sources said.

SFA, which previously focused on display production equipment, is expanding into chips, batteries and logistics.

It also recently supplied AI-based automatic sorting system to logistics center run by EMart24.