Deutsche Post DHL Group has signed a deal to transfer supply chain operations in China to SF Holding, covering the mainland, Hong Kong and Macau.
As part of the deal, DPDHL will receive an upfront payment of €700 million and a revenue based partnership fee over the next 10 years.
SF Holding will have access to DPDHL’s supply chain services, management expertise, transportation and warehousing technology.
The co-branded organisation will operate under the leadership of DHL Supply Chain’s CEO, Yin Zou and his existing management team.
The strategic partnership will allow DPDHL to continue to participate in the Chinese supply chain market, leveraging SF Holding’s domestic infrastructure, distribution network and local customers.
DPDHL Group CEO, Frank Appel says the joint capabilities will create a “unique platform” to meet the need for a high quality end-to-end supply chain provider in China.
He says: “SF Holding’s local market expertise in China has real advantages for our customers across all industries including technology, healthcare, retail, automotive, and e-commerce. Combined with our global operations standards and network support, the agreement provides a solid foundation to continue exploring further opportunities in China in the coming years.”
SF Holding chairman, Dick Wong says the agreement will help the company grow internationally, saying: “This partnership agreement will strengthen our capability in providing supply chain services to a diverse realm of industries and allow us to bring world-class management expertise into our supply chain business operations, enabling us to further understand and tailor to our customer needs.”