DHL to invest €140m to enhance its business in Southeast Asia

By Freddie Pierce
Currently the market leader in the supply chain industry in Southeast Asia, DHL Supply Chain has announced a new €140m investment into its South E...

Currently the market leader in the supply chain industry in Southeast Asia, DHL Supply Chain has announced a new €140m investment into its South East Asian business, to be completed by 2015. The bulk of the investments will go towards investing in new facilities, advanced IT solutions, expansion in transportation and bolstering staff strength and training.

“We plan to double our size in the next two to three years. We’re already off to a strong start – by the end of 2013, we will have opened seven best-in-class multi-user facilities across strategic locations in South East Asia,” said Oscar de Bok, DHL Supply Chain CEO for South and Southeast Asia. “These investments in quality, facilities, transport capabilities, IT and people are necessary to meet the needs of our customers in the region.”

The seven new facilities to be completed in 2013 include bespoke solutions to target growth in specific industries. Earlier this year, DHL launched a 17,000 square meter built-to-suit warehouse in Cimanggis, Indonesia, which boasts special features tailored for customers in the fast-moving consumer goods (FMCG) industry. The company will also launch a new facility at Bangna, Thailand this year, to support its continuous growth in the retail, fashion and consumer sectors, and a new built-to-suit facility in Bac Ninh, Vietnam to cater to the retail, consumer and technology sectors. Developments are also underway for new facilities in Singapore and parts of Malaysia.

Doubling facilities

By 2015, DHL Supply Chain will substantially increase its transport fleet, both owned and managed. The company also plans to grow its staff strength by some 65% to approximately 25,000 people and add over 50% more warehouse capacity to operate around 1,400,000 sq meters across the region.

DHL Supply Chain is also continuing to invest in advanced IT solutions covering best-in-class transport, warehouse management and valued added solutions which will offer customers access to scalable, state-of-the art solutions for greater visibility and management. Southeast Asia, with a combined gross domestic product (GDP) of $1.9 trillion has seen a rising expansion of the middle class. By 2015, it is estimated that some 145 million people, in South East Asia will be considered middle class, up from 95 million in 2010. The region’s consistent economic growth has seen many businesses look to the region not, only as a source of manufacturing and production, but increasingly a key market for domestic consumption.

For DHL Supply Chain, these trends have resulted in an increased need for broader solutions such as integrated warehousing, distribution, and transportation. In addition to recent investments announced by DHL Supply Chain in Thailand, Indonesia and Vietnam, the EUR 140 million investment will go towards other markets in South East Asia, building on existing capabilities to grow the company’s footprint.

“As businesses grow and enlarge their distribution footprint, their supply chain operations become more complex. This is where DHL can lend its global expertise and local experience - by fully managing our customers’ logistics, we enable them to focus on their core business,” said Oscar de Bok.

“We have an established track record across key industries – consumer, technology, retail and automotive sectors. With an established business in the life sciences and healthcare industry in Singapore and around the world, we’re also looking to grow this sector in tandem with the growth in the region.” 

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