ZTO set to expand Zhejiang facility

China-based ZTO Express plans to expand its Zhenjiang regional warehouse and sorting hub. In a statement issued on Friday (16 June), ZTO said that it plans to invest up to RMB150m (US$22m) on the expansion. ZTO has obtained land use rights to an over 32,000 square meter piece of land in Jinyi New Urban District, Zhejiang Province to construct additional office space, warehouse and sorting hub with processing capacity for up to one million parcels per day.

Construction is expected to be completed by August next year (2018).

“Building additional infrastructure at our Zhejiang regional warehouse and sorting hub is another step in our strategy to expand the scale of our network and improve service quality and operational efficiency,” said Meisong Lai, Founder and Chief Executive Officer of ZTO.

“Zhejiang is a very important commercial and regional hub for us and is one of the main distribution channels for the thousands of customers and merchants we provide services to in the area. The additional capacity to process up to one million parcels per day will further reduce regional unit logistics costs, improve customer service and in turn strengthen brand loyalty among our customers and merchants.”