DHL sells China supply chain business for €700m
Deutsche Post DHL has sold its supply chain operations in mainland China, Hong Kong and Macau to SF Holding for €700 million (RMB5.5bn).
The business will be branded SF DHL Supply Chain China. Deutsche Post DHL will continue to receiver revenue-based partnership fees for ten year, in return for the trademark licence, customer referral, employee training, and best practice sharing.
Yin Zou, former chief executive Greater China of DHL Supply Chain, has been appointed chief executive of the new organisation.
Frank Appel, chief executive of Deutsche Post DHL, said: “This supply chain alliance with SF is a strategic milestone for DPDHL Group. 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.”
Deutsche Post DHL said the deal would not affect its business activities in international express, freight transport and e-commerce logistics solutions in China.