DHL commits €350m to Southeast Asia expansion

DHL

DHL Supply Chain will invest €350 million over the next five years to expand warehouse capacity, workforce and sustainability initiatives in Southeast Asia.

“There is an incredible opportunity for businesses in Southeast Asia to strengthen supply chain resiliency,” said Global CEO, Oscar de Bok. “Companies are looking at diversifying their supply chains. Southeast Asia, with its efficient work environment and effective trade agreements, stands to benefit the most.”

This latest injection is part of a series of strategic investments made by DHL Supply Chain over the past year, already totalling €1.35 billion globally. These investments into the supply chain infrastructure, which include automation, digitalisation and sustainability in India, Latin America and Southeast Asia, support the omni-sourcing strategies of DHL’s customers in all major geographies, across all industries, the company said.

“These are strategic investments we take, despite the generally softer market environment, because we invest in the future growth of our business and strongly believe in the strategic expansion and diversification of our regional businesses,” de Bok said.

With this investment, DHL Supply Chain will increase its current 1.6 million square metres of warehouse space in Southeast Asia by 25 per cent, or 400,000 square metres.

“We are not just increasing our capacity, but we are building logistics centres that can cater to future demand for our customers through robotics and sustainability initiatives,” said CEO, DHL Supply Chain Asia Pacific, Javier Bilbao.

The company is hoping to create more than 3,000 job opportunities across Southeast Asia by 2024 and have committed to carbon-neutral facilities for all new buildings.

In other company news, DHL has announced the launch of its first dedicated network flight to Argentina.

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