Release Date: 19 December 2007
Release ID: 896
DHL, the world’s leading express and logistics company, today announced that it has formally completed an arrangement with Sinotrans (Sinotrans Air Transportation Development Co Ltd) for its parent company Deutsche Post World Net (DPWN) to purchase the remaining 50 percent share of the Sinotrans-Exel JV in China, which was formed in 1996. The new wholly owned foreign entity (WOFE) will facilitate the continued integration of the heritage Exel and DHL business units under the DHL Logistics brand in China, creating greater business synergies and providing enhanced customer benefits while driving economies of scale.
“DHL and Sinotrans have had, and continue to have, an ongoing and mutually beneficial relationship in the logistics and express industry in China,” emphasized DHL Global Forwarding’s Asia Pacific CEO, Mr. Peter Landsiedel. “Sinotrans’ agreement to sell its 50 percent stake in the Sinotrans-Exel JV is strategically relevant to each organization, and is a move that suits both groups’ long-term objectives and approach towards developing and maintaining a market leadership position in China’s booming logistics industry.”
The purchase of the remaining stake from Sinotrans is another milestone for DPWN and is further proof of its commitment to invest in and expand the Group’s presence and capability in China. Just last month, DHL announced an investment of US$175 million for its new Shanghai-based North Asia Hub, bringing its total recent investment in the region to just over US$2.2 billion.
“Sinotrans and DHL Logistics remain strong business partners,” echoed Victor Mok, DHL Global Forwarding’s Senior Vice President for Greater China,” and we look forward to future collaborative efforts that are in line with both groups’ China expansion plans.”
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