Deutsche Post DHL is selling its supply chain operations in Hong Kong, Macau and mainland China to Chinese logistics giant SF Holding for €700 million. Its other operations in express delivery and logistics are to continue as before.

The new business is to be rebranded SF DHL Supply Chain China. Under the deal, DP DHL is to continue receiving revenue-based partnership fees for ten years in return for its trademark licence, customer referral, employee training, and best practice sharing.

SF DHL Supply Chain China is to be headed up by Yin Zou who is the former CEO of Greater China DHL Supply Chain.

Frank Appel, chief executive of Deutsche Post DHL, said: “This supply chain alliance with SF is a strategic milestone for DPDHL 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’s local market expertise combined with DPDHL Group’s global operations standards and network support provide a solid foundation for us to continue exploring further opportunities in China in the coming years.

“China is on course for sustainable growth, and SF DHL Supply Chain China is well-placed to serve the increasing demands for world-class supply chain services. The agreement, therefore, is the cornerstone for DPDHL Group to gain unprecedented access to China’s immense domestic market.”