Deutsche Post World Net invests in Sinotrans Ltd.
Development of market position in ChinaBonn, 02/13/2003, 10:30 AM CET
Deutsche Post World Net has acquired a 5 percent share to a value of EUR52.5 million in Sinotrans Ltd., China's leading transport and logistics firm, at the Initial Public Offering. The state-owned company today put 38.5 percent of the capital on the market, of which 10 percent went to strategic investors. Of these strategic investors, Deutsche Post World Net acquired 5 percent, the largest share.
Said Chairman of the Board, Dr Klaus Zumwinkel, "This investment in Sinotrans is a decisive step towards reinforcing our strategic position in China, an important future market." Not least China's entry into the WTO makes it an interesting growth market for foreign transport and logistics providers.
DHL, Deutsche Post's air express subsidiary, has been operating in the Chinese market together with Sinotrans in a joint venture since as early as 1986. With a market share of approximately 40 percent, this joint venture in China is the number one for cross-border express services, and a powerful base from which to develop further in the Chinese market. At the end of last year, DHL also expanded its leading position in the Asian air express market through a joint venture with Air Hong Kong.
In addition, Deutsche Post is active in China through its subsidiary, Danzas, also with a national partner. It is thus one of the few licensed providers also to be operating in the international air and ocean freight business. All Deutsche Post World Net's express and logistics activities will be pooled worldwide from April under the DHL brand name.