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DHL invests €400 million in German mail, looks toward Chengdu

By Hpanchal on July 26, 2012

With a €400 million investment, Deutsche Post has modernized its mail network at all 82 of its mail stations in Germany. The company has installed 288 Großbrief sorting systems, which, according to a press release, is the leader in cutting-edge sorting machines, in mail facilities.

The move is all about further automating the mail process, enabling a time savings as well as a reduction in carbon emissions and energy usage.

"The automated processing of 65 million mail items per day is more efficient; our customers benefit from faster and more precise delivery; and we are easier on the environment thanks to fewer carbon dioxide emissions and the use of less electricity," Jurgen Gerdes, a member of Deutsche Post DHL's board, said in a statement.

By 2014, this €400 million investment will have expanded to €750 million, an amount to be used on the expansion of DHL's German parcel infrastructure. Officials hope the expanded facilities will allow workers to process anywhere from 28,000 to 50,000 packages each hour, up from the current average of 20,000 items processed per hour.

"With investments of more than a billion euros in the mail and parcel infrastructure Deutsche Post DHL has made a clear declaration in favor of the home market," Gerdes said. "In times when companies are increasingly reluctant to invest, such measures are a real shot in the arm for Germany as a business location."

DHL is also looking into expansion and investment in Chengdu, with the firm's customer solutions and innovation team compiling a logistics master plan for the city. DHL CEO Frank Appel signed a memorandum of understanding with Chengdu's mayor during a recent visit. The company hopes to tailor a logistics gameplan to Chengdu that could also be modeled for other Chinese cities.

"The eventual implementation of this solution could be a key success factor for the region and will help making the best use of its enormous business potential,"  DHL's Jorg Hanser said in a statement.

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