10-year partnership to grow supply chain operations in China
Deutsche Post DHL Group has entered into a landmark deal that will transfer its supply chain operations in China to S.F. Holding, a leading premium logistics service provider in the country.
The transaction involves the supply chain business in Mainland China, Hong Kong and Macau.
This has no bearing on Deutsche Post DHL Group's business activities in international express, freight transport and e-commerce logistics solutions in China.
As part of this strategic deal, Deutsche Post DHL Group will receive an upfront payment of RMB 5.5 billion (approximately EUR 700 million) and a revenue-based partnership fee over the next ten years.
S.F. Holding will have access to Deutsche Post DHL Group's best-in-class supply chain services, management expertise, transportation and warehousing technology.
The co-branded organization 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 S.F. Holding's extensive domestic infrastructure, distribution network and broad base of local customers.
This will accelerate the expansion of the co-branded organization's customer base.
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