Press Releases
London
23.October 2003
DHL Announces US$ 200 Million 5-year China Expansion Programme
DHL, the world's leading express and logistics company, today announced that its China joint venture, DHL Sinotrans will invest an additional US$ 200 million as part of its China expansion plans. The 5-year investment plan will boost DHL-Sinotrans' already substantial capacity and support the anticipated high growth of express delivery service in China.
At today's press conference in Shanghai, Mr Uwe Doerken, Chief Executive Officer of DHL Express, said: "The logistics industry is widely recognized by governments around the world as a critical, strategic industry. This is no exception in China. The astonishing pace of infrastructure development underscores the Government's emphasis on the logistics industry as a driver of economic progress. The wide-ranging expansion programme will add significantly to DHL's ongoing investments in China, and illustrates the active role which DHL, as a leading industry partner, is committed to playing in the country."
The investments will go into developing the express unit of DHL in China. DHL-Sinotrans will use the funds to expand and enhance the 4 existing gateways, add 14 new branches, carry out 73 projects, buy 1,200 new vehicles and recruit more staff, creating up to 2,100 new positions for DHL in China. From 2003 to 2004, DHL-Sinotrans plans to upgrade 3 of the 4 existing gateways, add 14 new branches, and carry out 34 projects and recruit 900 staff.
"The investments will build on our strengths in China through the expansion of our geographical reach, investment in technology, people development, and enhancement of infrastructure," added Uwe Doerken.
"DHL intends to stay in step with the needs of our customers in China, where the industry is developing and customer expectations continue to become more sophisticated. We maintain the belief that China will become DHL's most important market in Asia Pacific within the next few years and one of the most important markets within the DHL network. The investments will provide unparalleled strength to our already comprehensive network in China, enabling us to support the growth of the market," said Mr John Mullen, Chief Executive Officer, DHL-Asia Pacific.
The logistics industry in China, fuelled by the growth of manufacturing industries and trade, has grown phenomenally in the past few years and so has DHL's China business. DHL in China has been experiencing an annualized growth of between 35% and 45% over the past few years.
The expansion programme follows DHL' recent initiatives to cement its leading position in China, which include the acquisition of a 5% stake in Sinotrans, an investment of US$58 million; and the operation of overnight freight services by Dragonair - four times a week between Hong Kong and Shanghai. "DHL-Sinotrans has been one of our most successful joint ventures. The insights into Chinese markets brought by Sinotrans have been invaluable. The 5-year expansion plan is further proof of our commitment to our partnership with Sinotrans, ensuring that DHL-Sinotrans will continue to remain a leading player in many years to come," said Mr Jerry Hsu, Regional Director, Greater China and Korea, DHL Express.
DHL was the first foreign express delivery company to enter China in 1986 when it established a joint venture with Sinotrans, China's leading transport and logistics operator. The successful joint venture led to DHL's acquisition of a 5% stake in the H-share listing of Sinotrans by DHL in February 2003, thereby further strengthening the important partnership between the two companies. DHL-Sinotrans in China currently operates 42 branches, 4 gateways, 160 facilities and 800 vehicles, serving 318 cities.
Meanwhile, DHL continues to enhance its delivery capability in other key international markets. DHL recently completed the acquisition of Airborne Express. The combination of the ground operations of Airborne Express and DHL, under the DHL brand, will create a stronger third competitor in the U.S. express delivery market. With the U.S. being one of China's key trading partners, this strategic move is especially relevant to DHL's business in China and will bring more value to Chinese customers with transpacific shipment needs.
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At today's press conference in Shanghai, Mr Uwe Doerken, Chief Executive Officer of DHL Express, said: "The logistics industry is widely recognized by governments around the world as a critical, strategic industry. This is no exception in China. The astonishing pace of infrastructure development underscores the Government's emphasis on the logistics industry as a driver of economic progress. The wide-ranging expansion programme will add significantly to DHL's ongoing investments in China, and illustrates the active role which DHL, as a leading industry partner, is committed to playing in the country."
The investments will go into developing the express unit of DHL in China. DHL-Sinotrans will use the funds to expand and enhance the 4 existing gateways, add 14 new branches, carry out 73 projects, buy 1,200 new vehicles and recruit more staff, creating up to 2,100 new positions for DHL in China. From 2003 to 2004, DHL-Sinotrans plans to upgrade 3 of the 4 existing gateways, add 14 new branches, and carry out 34 projects and recruit 900 staff.
"The investments will build on our strengths in China through the expansion of our geographical reach, investment in technology, people development, and enhancement of infrastructure," added Uwe Doerken.
"DHL intends to stay in step with the needs of our customers in China, where the industry is developing and customer expectations continue to become more sophisticated. We maintain the belief that China will become DHL's most important market in Asia Pacific within the next few years and one of the most important markets within the DHL network. The investments will provide unparalleled strength to our already comprehensive network in China, enabling us to support the growth of the market," said Mr John Mullen, Chief Executive Officer, DHL-Asia Pacific.
The logistics industry in China, fuelled by the growth of manufacturing industries and trade, has grown phenomenally in the past few years and so has DHL's China business. DHL in China has been experiencing an annualized growth of between 35% and 45% over the past few years.
The expansion programme follows DHL' recent initiatives to cement its leading position in China, which include the acquisition of a 5% stake in Sinotrans, an investment of US$58 million; and the operation of overnight freight services by Dragonair - four times a week between Hong Kong and Shanghai. "DHL-Sinotrans has been one of our most successful joint ventures. The insights into Chinese markets brought by Sinotrans have been invaluable. The 5-year expansion plan is further proof of our commitment to our partnership with Sinotrans, ensuring that DHL-Sinotrans will continue to remain a leading player in many years to come," said Mr Jerry Hsu, Regional Director, Greater China and Korea, DHL Express.
DHL was the first foreign express delivery company to enter China in 1986 when it established a joint venture with Sinotrans, China's leading transport and logistics operator. The successful joint venture led to DHL's acquisition of a 5% stake in the H-share listing of Sinotrans by DHL in February 2003, thereby further strengthening the important partnership between the two companies. DHL-Sinotrans in China currently operates 42 branches, 4 gateways, 160 facilities and 800 vehicles, serving 318 cities.
Meanwhile, DHL continues to enhance its delivery capability in other key international markets. DHL recently completed the acquisition of Airborne Express. The combination of the ground operations of Airborne Express and DHL, under the DHL brand, will create a stronger third competitor in the U.S. express delivery market. With the U.S. being one of China's key trading partners, this strategic move is especially relevant to DHL's business in China and will bring more value to Chinese customers with transpacific shipment needs.
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