Author: Onon

MSM Group had the distinct pleasure of hosting Ambassador Extraordinary and Plenipotentiary of the People’s Republic of China to Mongolia Shen Minjuan and her esteemed team.

The discussions centered around strengthening trade relations and exploring new opportunities in renewable energy and agriculture, two key sectors with immense potential for growth and cooperation between our nations.

As a company deeply engaged in fostering international trade and investment, MSM Group plays a vital role in the automotive, infrastructure development, and consumer products sectors through our partnerships with leading Chinese brands, including the leading electric vehicle manufacturer BYD, industrial equipment manufacturer SANY Group, and Long Dai Fine Wine. These collaborations contribute significantly to Mongolia’s economic development, introducing cutting-edge technologies, sustainable solutions, and high-quality consumer goods to the market.

We highly value our ongoing cooperation with the Chinese Embassy and our Chinese business partners and look forward to further strengthening these relationships in the coming year. As we step into the Year of the Snake, we embrace new opportunities for growth, innovation, and shared success. 

Mark Gabel, the CEO of MSM Group, has been awarded the Order of the Polar Star, one of the highest national awards of Mongolia. The award was presented by the Acting State Secretary of the Ministry of Road and Transport Mr. Bolor-Erdene Baasanjav on 21 February in Ulaanbaatar, and serves as a recognition of MSM Group’s significant contributions to the country’s economic progress.

MSM Group operates across three main sectors: Automotive, Beverage, and Industrial. Since its establishment in 1998, the company has played a pivotal role in introducing premium international brands to the Mongolian market, significantly shaping the landscape of its respective industries. With a dedicated workforce of over 750 employees, MSM Group manages a wide range of facilities, including showrooms, service centers, warehouses, and sales centers in Ulaanbaatar. In addition, the company has a strong presence in Umnugovi province and other regions across the country.

MSM Automotive officially represents globally renowned automotive brands in Mongolia, including Mercedes-Benz, Jeep, INEOS, Ram, Ford, BYD, and Fuso, and offers over 40 models to meet the diverse needs of the Mongolian market. MSM Group has been a leader in innovation in Mongolia, particularly in the electric vehicle (EV) market. As the first distributor to introduce electric vehicles, MSM Group continues to lead the charge in sustainable automotive solutions. Through its partnership with BYD, MSM Automotive is not only offering environmentally friendly alternatives to traditional vehicles but is also shaping the future of transportation in Mongolia. MSM Betastar, a subsidiary of MSM Group in the beverage sector, officially represents over 90 beverage brands, providing more than 260 products to consumers across the country. MSM Industrial provides comprehensive services in the mining, industrial, agricultural equipment sectors, including rental, maintenance, and represents over 50 industrial brands in these industries. Also, MSM Industrial plays a vital role in improving the safety and productivity of the mining sector in Mongolia by providing state-of-the-art mining equipment, tools, and maintenance services.

In 2024, MSM Group contributed 97 billion MNT in taxes to the national budget and previously was recognized as one of the top 10 taxpayers in the Large Segment by the Mongolian Tax Authority, with a Business Scoring ‘A’ rating, underscoring its commitment to the growth and stability of Mongolia’s economy.

As MSM Group continues to expand its operations and contribute to the economic development of Mongolia, the company remains equally dedicated to the growth and development of its employees. The ongoing success of MSM Group means more opportunities for employees to advance their careers and enhance their skills. By providing an environment that nurtures both personal and professional development, MSM Group ensures that its employees are not only part of the company’s journey but also benefit from the experience and knowledge gained along the way.

Mark Gabel’s vision, leadership, knowledge and experience have played a significant role in MSM Group’s remarkable growth and success. Under Mark Gabel’s leadership, MSM Group continues to make valuable contributions to the development of Mongolia. This award is a testament to his and MSM Group’s significant impact on both the country’s economy and the growth of the company’s operations.

MSM Group remains committed to upholding the highest standards of excellence and contributing positively to the economy and society of Mongolia.

The Order of the Polar Star was created in 1936. It is awarded to Mongolians and foreigners for their services to Mongolia.

MSM Group received His Excellency Mr. Richard Buangan, Ambassador of the United States to Mongolia, and his Economic Team, reinforcing the good relations between the two organizations.

During the visit, the MSM Group leadership team shared exciting developments ahead. As 2025 begins, MSM Group is expanding investment opportunities, strengthening international relations and driving innovation. We are proud to contribute to US trade with our MSM Automotive‘s Ford, Jeep, Ram, MSM Betastar‘s Jack Daniel’s, MSM Industrial‘s John Deere and Terex Corporation businesses. MSM Group would be keen to strengthen dialogue to further enhance trade and cooperation among the US, Mongolia and Central Asia.

In line with strategic goals, MSM Group is also prioritizing technical training, expanding the captive business and strengthening customer relationships in Darkhan-Uul & Umnugovi Region. A major milestone for 2025 will be the completion of a new service workshop and warehouse in Khanbogd. As Mongolia-US trade continues to grow, MSM Group remains a key exclusive distributor of leading American brands.

We sincerely thank the Ambassador and the U.S. Embassy in Ulaanbaatar, Mongolia for the productive discussions that underscored the significance of our partnership and our mutual dedication to boosting trade and investment between our two countries.

MSM Group is proud to announce its recognition as one of the 2023 TOP-100 Enterprises. This recognition highlights MSM Group’s significant contribution to the nation’s economic development, innovation, and commitment to excellence across multiple industries.

The “TOP-100 Enterprises” list, compiled annually by the Mongolian government and Mongolian National Chamber of Commerce and Industry (MNCCI), acknowledges companies that have demonstrated outstanding performance in terms of revenue, market leadership, and their positive impact on the country’s economic landscape. The TOP-100 Enterprises Award is a testament to MSM Group’s dedication to driving economic growth and delivering high-quality services across wide range of business sectors.

This achievement reflects the hard work and dedication of the entire ONE MSM team. MSM Group remains committed to upholding the highest standards of excellence and contributing positively to the economy and society.

MSM Group, as part of its corporate social responsibility, has donated hand tools to Magic Mongolia Khentii Center’s children’s STEM club.

The Magic Mongolia Khentii child protection and development center provides free technical sports training to children with the aim of developing their engineering and technical thinking, providing scientific knowledge, and delivering technological education. Through technical sports training, children learn and create models such as aircraft, watercraft, automotive models, and mechanical devices, gaining engineering knowledge, skills, and craftsmanship. MSM Group is donating the necessary tools for the training to improve the participation, accessibility, and productivity of each student.

Supporting projects that make a long-term, tangible contribution to social welfare, children’s rights, and educational development is our social responsibility goal.

This strategic sale will enhance Jebsen & Jessen’s geographic expansion, strengthen its distribution capabilities and networks while securing MSM’s long term growth and future development in Mongolia.

Agricultural and Beverage Conglomerate, MSM Group today announces the sale of a majority stake to Jebsen & Jessen Group thereby securing a continuously growing future for the company and its employees.

As one of the leading conglomerates in Mongolia, MSM Group spans multiple sectors and since 1998, has been playing a pivotal role in introducing premium international brands to the Mongolian market; it remains the sole distributor and partner for more than 50 of these brands in the country today. With over 650 employees, MSM Group operates showrooms, workshops, warehousing facilities and sales outlets in the central area of the capital city Ulaanbaatar, as well as South Gobi and other areas of Mongolia.

Founders and primary shareholders Laurenz Melchers and David Reiner, along with their equity partner Mongolian Opportunities Fund, are excited with this announcement.

This acquisition brings together the technological know-how and strength of two family businesses serving complementary markets. Both groups are no stranger to each other, sharing not only historical family business connections, but also distribution agreements with MSM having served as a distributor of Jebsen & Jessen Group’s industrial products in Mongolia for over a decade.

Securing a strong future for MSM and its employees

For nearly 30 years, the founders built a future for MSM by funding its expansion with continuous re-investments into the fast-paced growth opportunities of Mongolia. They are fully aware of their responsibility towards Mongolia, the business and, especially, its employees.

As such, in preparation for this day, they ensured that an exceptional management team was set-up and given the opportunity to independently run the day-to-day management of the business with great success.

In order to guarantee that MSM continued to thrive for many decades to come, they made the difficult decision to search for a family business with shared values and long-term history but also the capital strength and international presence, to take over the reins at MSM.

It has taken some time to find the right partner and it is therefore a sad and a happy moment for the two Founders to make this announcement but they are comfortable with the notion that MSM’s future is in good hands; especially since they will remain as shareholders in MSM and will also be growing their other business interests in Ulaanbaatar, thus staying loyal to Mongolia for many years to come.

“Having known Heinrich Jessen, Chairman of Jebsen & Jessen for many years, both in a professional and personal capacity, both David and I are assured that this is the right step and the perfect group to entrust the future of our beloved MSM and its employees for the many years to come” said Laurenz Melchers Chairman of MSM Group

In addition, both MSM founders and Jebsen & Jessen Group want to welcome Mark Gabel to the new shareholding structure of MSM; Mark will remain CEO of MSM and they know he will take full advantage of all the synergies and opportunities that the Jebsen & Jessen Group can provide to continue to successfully grow MSM for the years ahead.

The transaction took effect after approval by the Mongolian authorities. LCA Solutions, a Hong Kong regulated Multi Family Office, acted as financial advisor to the Founders of MSM. Wschong & Co in Hong Kong, Mishcon de Reya in London and Melville Erdenedalai in Ulaanbaatar acted as legal advisors for the different Founders while Herbert Smith Freehills in Hong Kong acted for Mongolian Opportunities Fund.

Expanding market reach, capabilities and synergies for growth

With this announcement, Jebsen & Jessen Group takes a market leading position in the fast-growing market of Mongolia and another step in its continuous expansion beyond its established market strongholds in South East Asia.

“We are delighted to be welcoming MSM Group as part of the Jebsen & Jessen family. The acquisition is a strategic move that aligns with the goal of expanding our global footprint, and enhancing our industrial and distribution capabilities,” said Jebsen & Jessen Group CEO Per Magnusson. “MSM Group’s leading market position in Mongolia, its strong management team and workforce, and its diverse businesses will be a valuable addition to our portfolio. We will benefit from the synergies that we can now leverage across these activities.”

For MSM Group, this acquisition facilitates access to the extensive resources and expertise of Jebsen & Jessen Group, offering new avenues for growth and development. MSM Group will become the seventh business unit within Jebsen & Jessen Group. MSM Group will continue to operate under its current company name and leadership, and maintain its commercial presence with all operations and business proceeding as usual.

“MSM Group has enjoyed strong growth over several decades to become the market leading company it is today. Joining Jebsen & Jessen Group provides us with the potential to scale our operations to levels we have never achieved before. These are exciting times for our teams and the brands we represent,” said MSM Group CEO Mark Gabel.

About Jebsen & Jessen Group

Part of a global family enterprise that dates back to a trading partnership formed in Hong Kong in 1895, Jebsen & Jessen Group headquartered in Singapore is today an industrial conglomerate with a diverse network of businesses spanning manufacturing, engineering, mining and distribution activities. Core businesses include cable technology, garnet, ingredients, life sciences, packaging and other industrial technology, across more than 15 countries in five continents. Over 4,000 colleagues work as one to develop meaningful products and services for the myriad customers served.

For more information, visit www.jjsea.com.

About MSM Group

Founded in 1998, MSM Group is today with over 650 highly professional Mongolian and foreign employees a leader in the automotive, industrial and beverage distribution sectors. MSM/SGT is also a strategic business partner of Oyu Tolgoi, the world’s third largest copper and gold mine that is operated by Rio Tinto. MSM Group delivers premium quality consumer and industrial products and services to a wide network of customers and partners. In addition, MSM Group supports social projects and programmes in many areas such as health, environment, sustainability, arts and children’s education as part of the company’s corporate social responsibility.

For more information, visit www.msmgroup.mn.

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