DHL signs licence deal with China’s SF Holding

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Deutsche Post DHL Group is to transfer its supply chain operations in mainland China, Hong Kong and Macau to Chinese logistics service provider SF Holding, setting up a new co-branded business – SF DHL Supply Chain China.

The RMB 5.5 billion (EUR 700 million) deal involves only the supply chain business; the DPDHL Group’s international express, freight transport and e-commerce logistics solutions in China are not included.

The German group will continue to receive revenue-based partnership fees for 10 years in exchange for providing the co-branded business with trademark license, customer referral, employee training, best practice sharing and other areas of support.

Yin Zou, former CEO of Greater China of DHL Supply Chain has been appointed CEO of the new organisation, and along with his existing management team, will continue to lead the Shanghai-headquartered business.

He said: “This landmark deal gives SF DHL Supply Chain China unparalleled advantage to transform the supply chain industry in China. My team and I are looking forward to amalgamating the best of what DPDHL Group and SF stand for, and converting these into tangible value for existing and new customers.”

SF DHL Supply Chain China will have access to DPDHL Group’s expertise, network, operations standards and technology.

Frank Appel, CEO Deutsche Post DHL Group, said: “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.”

He added that the agreement would enable DPDHL Group “to gain unprecedented access to China’s immense domestic market.”

Dick Wong, chairman, SF Holding added: “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.”