DHL Express invests millions in US expansion | Business| Economy and finance news from a German perspective | DW | 15.03.2012
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DHL Express invests millions in US expansion

German courier DHL Express has announced plans to invest millions of euros to expand its hub at a Kentucky airport in the United States. The company says the facility will create hundreds of jobs.

Germany's DHL Express, a courier service that is part of the Deutsche Post DHL logistics company, is planning to invest $47 million (36 million euros) in an expansion of its Americas facility at Cincinnati/Kentucky International Airport in the United States.

The Bonn-based company said in a statement that it would create 280 jobs for a 193,000-square-foot (18,000-square-meter) sort facility over the next 14 months.

The company said 90 percent of the DHL volume that enters the US is already handled by the hub, which opened in 1990. DHL said it hopes the investment let it handle steadily rising cross-continent package deliveries.

"The express sector is one of the major drivers of global trade and we are excellently positioned to capitalize on this through our services which meet our customers' international transport requirements," said DHL Express head Ken Allen.

Major losses steer DHL clear of US market

Through a network spanning more than 220 countries and territories and more than 500 airports globally, DHL Express provides courier and express services to business and private customers.

The hub at Cincinnati/Kentucky International Airport links the United States with the global DHL network, spanning Asia, Europe and the Americas. However, the German courier said it has no intention of becoming a player on the national US market again after withdrawing from there some years ago, following multi-billion-dollar losses.

In Germany itself, DHL accounts for 40 percent of all domestic parcel deliveries. It's planning to invest 750 million euros to modernize the country's delivery service in a bid to keep its main rivals at bay.

hg/sms (dpa, AP)