Freight DHL and S.F. Holding enter a strategic partnership
DHL Group has announced it has entered into a 10-year strategic partnership with S.F. Holding to grow supply chain operations in China.
Deutsche Post DHL Group has entered into an agreement that will transfer its supply operations in China to S.F. Holding. The transaction involves the supply chain business in Mainland China, Hong Kong and Macau.
As part of this strategic deal, Deutsche Post DHL Group will receive an upfront payment of RMB 5.5 billion (approximately EUR 700 million) and a revenue-based partnership fee over the next ten years. S.F. Holding will have access to Deutsche Post DHL Group's supply chain services, management expertise, transportation and warehousing technology. The co-branded organization will operate under the leadership of Yin Zou, the current CEO, Greater China of DHL Supply Chain, along with his existing management team.
"The joint capabilities of Deutsche Post DHL Group and S.F. Holding will create a unique platform to meet the need for a high quality end-to-end supply chain provider in China. S.F. 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," said Frank Appel, CEO Deutsche Post DHL Group.
SF Holding was established in 1993 by and is one of the largest logistic service providers in China. In 2010, SF Airlines started scheduled cargo services and by today, the airline operates over 44 cargo aircraft.
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