DHL to sell Chinese supply chain business

German logistics company, Deutsche Post DHL Group, will transfer its supply chain operations in China to SF Holding.

As part of this strategic deal, Deutsche Post DHL Group will receive an upfront payment of €700 million and a revenue-based partnership fee over the next ten years. SF Holding will reportedly have access to Deutsche Post DHL Group's “best-in-class supply chain services, management expertise, transportation and warehousing technology”. The co-branded organisation will operate under the leadership of Yin Zou, the current CEO, Greater China of DHL Supply Chain, along with his existing management team.

This strategic partnership will allow Deutsche Post DHL Group to continue to participate in the fast-growing Chinese supply chain market, leveraging SF Holding's extensive domestic infrastructure, distribution network and broad base of local customers.

“The joint capabilities of Deutsche Post DHL Group and SF Holding will create a unique platform to meet the need for a high quality end-to-end supply chain provider in China,” said Deutsche Post DHL Group CEO, Frank Appel. “SF Holding's local market expertise in China has real advantages for our customers across all industries including technology, healthcare, retail, automotive, and e-commerce. Combined with our global operations standards and network support, the agreement provides a solid foundation to continue exploring further opportunities in China in the coming years.

“SF Holding has been actively expanding its business-to-business (B2B) capabilities and pursuing different strategic partnerships to grow SF Holding into a truly integrated logistics solutions provider that delivers best-in-class services for our clients,” said SF Holding Chairman, Dick Wong.

“This partnership agreement will strengthen our capability in providing supply chain services to a diverse realm of industries and allow us to bring world-class management expertise into our supply chain business operations, enabling us to further understand and tailor to our customer needs.

“This agreement will help us achieve our vision to grow further internationally, partnering with Deutsche Post DHL Group, a world class organisation,” he said.

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