Deutsche Post DHL inks deal on China supply-chain operations

The mail and logistics company Deutsche Post DHL Group has concluded a landmark deal this week to transfer its supply-chain operations in China to SF Holding.

The transaction involves the supply-chain business, and has no bearing on DPDHL Group's business activities in international express, freight transport and e-commerce logistics solutions in China, it said.

As part of this transaction, DPDHL Group received 5.5 billion yuan ($808.8 million) and will continue to receive revenue-based partnership fees for 10 years while DPDHL Group provides the co-branded business with trademark licenses, customer referrals, employee training, best practice sharing and other areas of support.

"This supply-chain alliance with SF is a strategic milestone for DPDHL Group," said Frank Appel, CEO of Deutsche Post DHL Group.

"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 DHL Supply Chain China will have access to DPDHL Group's global expertise, network, operation standards and innovations, across industries from technology, healthcare, retail and automotive to e-commerce.