Deutsche Post DHL Group has concluded its previously announced deal to transfer its supply chain operations in Mainland China, Hong Kong and Macau to SF Holding.
As part of the transaction, DPDHL Group received RMB 5.5 bn (€700m) and will continue to receive revenue-based partnership fees for 10 years while DPDHL Group provides the co-branded business with trademark license, customer referral, employee training, best practice sharing and other areas of support.
Yin Zou, former CEO, Greater China of DHL Supply Chain, was appointed CEO of the new company SF DHL Supply Chain China. Headquartered in Shanghai, the company will harness DPDHL Group’s supply chain services, management expertise, transportation and warehousing technology, combined with SF’s extensive domestic infrastructure, distribution network and broad base of local customers, to drive its growth trajectory. The company will look to expand its service portfolio to SF’s existing customers, as well as looking to win new business.
Frank Appel, CEO Deutsche Post DHL Group, commented, “With our joint capabilities we will create a unique platform to meet the need for a high quality end-to-end supply chain provider in China. SF’s local market expertise combined with DPDHL Group’s global operations standards and network support provide a solid foundation for us to continue exploring further opportunities in China in the coming years. China is on course for sustainable growth, and SF DHL Supply Chain China is well-placed to serve the increasing demands for world-class supply chain services. The agreement, therefore, is the cornerstone for DPDHL Group to gain unprecedented access to China’s immense domestic market.”
“SF’s vision is to become a trustworthy logistics-based business partner with comprehensive solutions for our customers, and our partnership with DPDHL, the leading logistics company in the world, helps us move solidly ahead with this vision. We are expanding our domestic footprint through SF DHL Supply Chain China to cater to our customers across a multitude of industries. This deal with DPDHL Group, a world-class organization, also helps us to better serve multi-national clients,” said Dick Wong, Chairman, SF Holding.
SUBSCRIBE TO LOGISTICS BRIEFING:
Get the latest logistics news and high level analysis delivered straight to your inbox: