DPDHL and SF Holding complete €700m supply chain tie-up in China

Deutsche Post DHL (DPDHL) has concluded a deal to transfer its supply chain operations in China to SF Holding in a ten-year strategic partnership to grow the business in China.
As part of this deal, which was first announced at the end of October last year, DP DHL will receive an upfront payment of RMB5.5bn (approximately €700m) and a revenue-based partnership fee over the next decade.
DPDHL Group provides the co-branded business with trademark license, customer referral, employee training, best practice sharing and other areas of support.
The co-branded business will be named SF DHL Supply Chain China and Yin Zou, former chief executive, Greater China of DHL Supply Chain, was appointed chief executive of the organisation, and along with his existing management team, will continue leading the business.
The business will be headquartered in Shanghai and will offer DPDHL’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.
Frank Appel, chief executive, DPDHL 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.”
Dick Wong, chairman, SF Holding, added: “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 organisation, also helps us to better serve multi-national clients.”
SF DHL Supply Chain China will have access to DPDHL’s network, operations standards and innovations, across industries from technology, healthcare, retail and automotive to e-commerce.