GERMANY's Deutsche Post DHL Group has agreed to sell its supply chain operations in China to Shenzhen-based SF Holding for US$796 million.
Thus DHL sells its supply chain business on the mainland, Hong Kong and Macau, while it retains its business activities in international express, freight transport and e-commerce logistics solutions in China, reported American Shipper.
DHL will also receive an upfront payment of CNY5.5 billion (US$792.1 million) and a revenue-based partnership fee for 10 years.
Thus, SF Holding will have access to Deutsche Post DHL Group's supply chain services, management expertise, transportation and warehousing technology. The co-branded organisation will operate under the leadership of Yin Zou, the current CEO for Greater China for DHL Supply Chain, along with his existing management team.
Said DHL group CEO Frank Appel: 'SF's local market expertise has real advantages for our customers across all industries including technology, healthcare, retail, automotive and e-commerce. Combined with our global operation, the agreement provides a foundation to explore opportunities in China in coming years.'
Said SF Holding chairman Dick Wong: 'This 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.'
Thus DHL sells its supply chain business on the mainland, Hong Kong and Macau, while it retains its business activities in international express, freight transport and e-commerce logistics solutions in China, reported American Shipper.
DHL will also receive an upfront payment of CNY5.5 billion (US$792.1 million) and a revenue-based partnership fee for 10 years.
Thus, SF Holding will have access to Deutsche Post DHL Group's supply chain services, management expertise, transportation and warehousing technology. The co-branded organisation will operate under the leadership of Yin Zou, the current CEO for Greater China for DHL Supply Chain, along with his existing management team.
Said DHL group CEO Frank Appel: 'SF's local market expertise has real advantages for our customers across all industries including technology, healthcare, retail, automotive and e-commerce. Combined with our global operation, the agreement provides a foundation to explore opportunities in China in coming years.'
Said SF Holding chairman Dick Wong: 'This 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.'