DHL to triple China regional hub this year to expand
SHANGHAI, June 30 (Reuters) - DHL, a unit of Deutsche Post (DPWGn.DE), Europe's biggest mail carrier, plans to triple the number of regional transportation hubs in China to 15 by the end of this year, betting Chinese demand for logistics services will grow despite the global recession.
"China is more resilient than other countries, although it is not totally insulated (from the recession)," Victor Mok, Greater China vice-president of DHL Supply Chain, told reporters in Shanghai, where DHL is opening a fifth hub in China.
"Despite the economic slowdown, we will still maintain an investment (in China)."
Deutsche Post, which competes with United Parcel Service (UPS.N) and FedEX (FDX.N), has been slashing costs and improving efficiency to revive growth strained by the global recession.
Bonn, Germany-based Deutsche Post posted its first annual loss as a listed company last year, after closing the DHL Express unit's unprofitable U.S. domestic business.
In China, DHL would continue to invest in infrastructure, people and technology, Mok said.
The newly-opened DHL Eastern China Domestic Transportation Hub in southern Shanghai is part of a $25 million investment in that district, and is DHL's fifth such hub in China.
Another 10 new regional hubs, used to re-sort and redistribute shipments, would be in operation by the end of this year, the company said. (US$1=6.832 Yuan)
