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DPDHL Group and SF Holding conclude landmark supply chain deal 18 February 2019

10-year strategic partnership to grow supply chain operations in China

Deutsche Post DHL Group has concluded the landmark deal to transfer its supply chain operations in Mainland China, Hong Kong and Macau, herein after referred to as ‘China’ to SF Holding (SF), a leading logistics service provider in the country. The transaction involves the supply chain business, and has no bearing on DPDHL Group's business activities in international express, freight transport and eCommerce logistics solutions in China.

As part of this transaction, DPDHL Group received RMB5.5 billion (approximately €700.0 million), and will continue to receive revenue-based partnership fees for 10 years while 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, SF DHL Supply Chain China, was announced at the deal closing, and Yin Zou (former CEO, Greater China of DHL Supply Chain) was appointed CEO of the organisation, 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 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.

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.