An extra EUR113 million (US$140.37 million) is to be invested by DHL in China to expand its supply chain network by increasing warehouse and transport capacity in the country by 50 per cent over next three years.

The funds follow the EUR105 million committed to China last year and will be used by DHL Supply Chain (DSC) to build six new logistics facilities by 2020 located at Guangzhou, Hangzhou, Wuhan, Shenyang, Shenzhen, and Shanghai Waigaoqiao free trade zone, reported Lloyd's Loading List.

DSC Asia Pacific CEO Oscar de Bok said his division was growing strongly in Asia Pacific with growth led by China.

"By working closely with our customers who provide us with their demand forecast, we have a clear roadmap of the locations we need to be in, as well as the level of the services required," he said.

The company recently opened a new 54,000-square metre logistics facility in Chengdu, which has become a key hub for original equipment manufacturers (OEMs). New facilities have also been added in Beijing, Shanghai, Guangzhou and Shenzhen.

Furthermore, the number of its cross-docks in China has been boosted to enable the transfer of cargo with minimal warehousing.

China DHS managing director Zou Yin said the company's investments would help reduce the high cost of logistics in China through "the continued build out of our pan-China infrastructure, technology investments and extensive transport network".