Deutsche Post DHL is investing €500mn in its Latin American business as it seeks to capitalise on growing demand to expand supply chains beyond China.The logistics group is building out new warehouses across alternative manufacturing hubs such as Mexico, Malaysia and Vietnam as businesses try to diversify their sourcing.
Oscar de Bok, head of DHL’s supply chain business, said storage facilities in these countries were filling up almost as soon as they opened. “Every time we think that we are taking a bigger risk, we fill it up right away,” he said.
He added that businesses were not shutting down operations in China, but “instead of making the next investment of growth in China, [they are doing] that in alternative markets”.
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