DPDHL Group completes supply chain deal with China’s SF Holding
Deutsche Post DHL Group (DPDHL Group) has entered completed a major supply chain deal with SF Holding (SF), a leading premium logistics service provider in China.
Feb 19, 2019: Deutsche Post DHL Group (DPDHL Group) has entered completed a major supply chain deal with SF Holding (SF), a leading premium logistics service provider in China.
Based on this deal, DPDHL will transfer its supply chain operations in China to SF Holding. The transaction involves the supply chain business, and has no bearing on DPDHL Group's business activities in international express, freight transport and e-commerce logistics solutions in China.
As part of this deal, DPDHL Group received EUR 700 million and will continue to receive revenue-based partnership fees for 10 years.
DPDHL Group provides the co-branded business named as SF DHL Supply Chain China, 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, has been named as the CEO of the organization, and along with his existing management team, will continue leading the business.
Headquartered in Shanghai, SF DHL Supply Chain China will harness DPDHL Group's best-in-class 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.
Frank Appel, CEO, Deutsche Post DHL Group said: "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 growth1, 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."
"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.
SF DHL Supply Chain China will have access to DPDHL Group's global expertise, network, operations standards and innovations, across industries from technology, healthcare, retail and automotive to e-commerce.
Yin Zou, CEO, SF DHL Supply Chain China added: "The strong commitment from DPDHL Group and SF has led to the swift and smooth completion of the transaction, and it is full steam ahead for us to deliver top quality turnkey supply chain solutions to enterprises in China."