Supply Chain News / Finance & Credit

€150 Million Investment Doubles Capacity DHL’s German Hub

December 10, 2013

DHL Express announced that it will double the operational footprint of its main European hub in Leipzig, Germany to accommodate future shipment volume growth.

The company plans to invest EUR 150 million to construct additional warehousing, sorting and office facilities with a territory of approximately 44,000m2. The installation of a new shipment sorting system will increase the processing capacity of the hub by 50 percent, to more than 150,000 shipments per hour.

Work on the new facilities will begin in December 2013, with the new, expanded warehouse expected to be operational from the fourth quarter of 2014.

"Our European Hub in Leipzig is a critical part of our express infrastructure and one of three global hubs that form the backbone of the DHL network,” says John Pearson, CEO, DHL Express Europe. “Since we established operations here five years ago, it has been a driver behind DHL's ability to help customers in Germany and other European markets who are trading internationally expand and grow. This investment will allow us to support our customers' future growth requirements, while further strengthening both DHL's service capabilities and our economic contribution to Leipzig and the surrounding region."

The facility will also incorporate green technologies.

"DHL has delivered on the promises we made when we moved to Leipzig. We now employ over 3,500 people at the hub and our service levels are higher than ever. This investment is a sign of the trust that DHL is placing in Leipzig to support future express shipment growth in Europe,” says Robert Viegers, Managing Director, DHL Leipzig Hub GmbH. “At the same time, we are extremely grateful to everyone who has placed their trust in us and helped this hub to grow. The commitment of our workforce, the support of the region and the loyalty of our customers has been the decisive factors in the development of Leipzig Hub."

The expansion will incorporate the building of a new 40,000m2 warehouse, effectively doubling the current footprint, and the installation of a material handling system. It will also add a parking yard for trucks and just under 4,000m2 of office space.

Approximately 400 additional jobs will be created by the expansion. As part of DHL's GoGreen program, the facility will also incorporate green technologies, reinforcing the company's stated commitment to environmental sustainability in its operations.

The planned investment will bring DHL's total investment in Leipzig Hub to date to over EUR 510 million.

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