Ottawa’s Kinaxis deepens Asian market presence with South Korean food deal

Seoul
The skyline of Seoul, South Korea. (Stock image, for illustrative purposes only)

Kinaxis Inc. has added a leading tofu manufacturer to its platform, furthering the Ottawa-based SaaS firm’s expansions into Asia.

Kinaxis (TSX:KXS) announced Monday that it has signed South Korean fresh food company Pulmuone as a customer on its supply chain management software.

A press release highlights the pressure placed on Pulmuone by expiry dates as a motivator to better manage its supply and demand needs. Kinaxis CEO John Sicard said in a statement that the consumer-packaged goods vertical is often subject to sudden shifts in demand, making it a key concern for the firm’s fresh food customers.

The deal deepens Kinaxis’ customer base in South Korea, where the firm operates an office in Seoul.

Though 88 per cent of Kinaxis’ revenues in 2017 were from North American customers, the firm has indicated a desire to further expand operations internationally, according to recent financial filings.

That’s in keeping with news earlier this month that Kinaxis will build two data centres in Japan, one in Tokyo and the other in Osaka. Kinaxis points to recent deals with Japanese automakers Toyota and Nissan as continuing reasons to invest in the country.

The company’s headcount will continue to grow in Japan as well. Kinaxis’ Tokyo office has doubled its number of employees in the past 12 months with plans to continue hiring, according to a release.

Kinaxis shares were up half a percentage point, or 43 cents, to $82.99 on the Toronto Stock Exchange on Tuesday.