DHL to invest $65 M in supply chain facilities in Thailand

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Deutsche Post DHL’s logistics unit, DHL Supply Chain, announced it will invest EUR50 million (US$64.8 million) in new facilities in Thailand in anticipation of the country’s strong market growth.

Over the next two-and-a-half years, the company plans to build new facilities, expand its fleet of trucks, invest in new technology, intensify its manpower training, and create an additional 2,000 jobs, an official company statement disclosed.

“Thailand is one of the fastest growing markets for our business, with our footprint growing 30 percent in the last year,” said Paul Graham, DHL Supply Chain CEO for Asia Pacific. “We want to be ready to grow with our customers as they expand within the market.”

The new warehouse facility will rise in Bangna, a district in Bangkok, to take advantage of the continued growth of the country’s retail, fashion, and consumer sectors.

“According to recent reports, The Thai Retailers Association expects the retail industry to grow by 12 percent this year, the highest in three years and exceeding its earlier projection of 8 percent,” said Burrell.

The automotive campus, to be located on the eastern seaboard, will help customers meet the new demands of the local automotive industry. Thailand is now among the world’s top 10 automotive producers as a result of a full recovery of the industry from last year’s floods and the production increases by both assemblers and parts makers, said Kevin Burrell, DHL Supply Chain’s new managing director for Thailand.

The fleet of vehicles, currently totaling more than 1,000 units, will also be expanded over the next few years, although the firm did not say how many more will be added.

In addition, further investments will be poured in creating value-added supply chain services dealing in crisis management following the  floods in Thailand as well as the earthquakes in Japan and New Zealand.

 

Photo courtesy of Deutsche Post DHL