DHL Supply Chain is to invest a further €113 million in China, on top of the €105 million that was committed in 2013.
The money, €218m in all, will be used to expand DHL’s network across China, notably building six additional logistics facilities scheduled for completion by 2020. The confirmed locations are Guangzhou, Hangzhou, Wuhan, Shenyang, Shenzhen and Shanghai Waigaoqiao Free Trade Zone.
DHL recently opened its Chengdu logistics centre in western China. Located in Xindu district, the 54,000 sqm centre supports multiple customers across a range of industries including technology, consumer and healthcare. It also acts as a multi-user cross-dock to support the transport of products across the Western region.
DHL said new facilities have been introduced in the Tier 1 cities of Beijing, Shanghai, Guangzhou and Shenzhen, while the roll-out of cross-docks has been accelerated across China to allow the transfer of cargo with minimal warehousing.
Chinese companies are increasingly looking to international markets and for many, a major challenge in the globalization of their business operations is the creation of a lean global supply chain. DHL’s investment reflects its desire to be part of this.
In the past year DHL Supply Chain has added 12 new facilities, equivalent to 436,000 sqm of warehousing space and a further five more amounting to an additional 110,000 sqm are planned to open in 2015.
Zou Yin, managing director of DHL Supply Chain China said, “With the continued build out of our pan-China infrastructure, technology investments and extensive transport network, DHL Supply Chain is better positioned to contribute towards China’s goal of reducing the cost of logistics and reinforce the competitiveness of Chinese businesses. This also enables us service our multinational and Chinese customer better.”