Deutsche Post CEO Zumwinkel mulls acquisitions in China for DHL unit
Deutsche Post AG chief executive Klaus Zumwinkel told Handelsblatt economic daily that the company could seek to expand its DHL logistics operations in China via acquisitions.
‘If there is an attractive takeover target there, then we will take a close look at it,’ Zumwinkel told the newspaper.
He also said that DHL wants to increase sales in China by 30-35 pct per year.
DHL has a 40 pct share of the Chinese logistics and express mail market.
Overall, Zumwinkel said DHL wants to achieve double digit annual sales growth in Asia.
Deutsche Post Logistics Unit Set to Grow Further in Asia
German Business Digest 04-18-2006
DHL, the express and logistics unit of German postal services group Deutsche Post AG, does not rule out any new acquisitions in Asia in a move to sustain its two-digit percentage growth in the region, Deutsche Post CEO Klaus Zumwinkel said on April 17, 2006.
In case there are any attractive takeover targets, DHL will show interest, according to Zumwinkel.
DHL aims a growth of between 30 pct and 35 pct in China alone.
DHL reported a market share of almost 40 pct in China for the last few years. DHL’s most important rivals are FedEx and UPS, as well as a number of local low-cost couriers.
DHL has managed to establish itself as the leading foreign logistics company in China and have been dominating the international freight-forwarding business in the country since 1986. The Chinese market is currently estimated at $1.5 bln (1.22 bln euro), and is said to become the largest cargo market worldwide in a foreseeable future.
According to experts, the freight-forwarding market in Asia will grow to $1.3 trillion (1.061 trillion euro) by 2020, from $700 bln (€571.06 bln euro) currently, and DHL will be the undisputed number one.
Rivals FedEx and UPS currently have 20 pct and 10 pct market shares in China, respectively.
DHL significantly strengthened its positions in the region after the acquisition of British logistics and freight group Exel Plc in 2005. DHL has 350,000 clients, 40,000 employees, and generates 6.0 bln euro ($7.36 bln) turnover in the Asian/Pacific region. According to Zumwinkel, DHL will strive to protect its positions in Asia and China and remain the market leader in future.
www.handelsblatt.com
