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DPD plans €50m German hub and completes £100m UK hub construction

DPD UK completes hub construction

DPD is investing around €50 million in a major parcel sorting centre in Hamm in north-westGermany, creating 600 new jobs, and has completed construction of its new £100 million UK parcel

hub, the largest in Europe.

DPD’s new sorting centre in Hamm, North-Rhine Westphalia, will replace the two existinglocations in nearby Unna. The 95,000 sqm site at the InlogParc Hamm, which DPD has acquired fromHamm’s Business Development Office, is located in close proximity to the A2 motorway ensuringtrans-regional coverage.

Peter Störring, Director Operations, DPD GeoPost (Deutschland) GmbH, explained: “In the mediumterm, the available capacities at the present locations will not be sufficient to deal with ourrising parcel volumes. At the same time, we wish to remain true to the region and are thereforedelighted that Hamm has been able to offer us the perfect location for what will become one ofGermany’s largest parcel sorting centres.”

After several development stages, the Hamm parcel distribution centre will handle more than200,000 parcels a day. When the final stage is completed, the site will employ 600 staff, including250 delivery drivers.

The construction work on the approximately 2,500 sqm office building and 17,000 sqm sortingterminal is scheduled for mid-2015. The first parcels will be distributed from the new location atthe end of 2016. Together with the latest sorting equipment, the facility will require an overallinvestment of around €50 million.

DPD expects especially strong growth in B2C deliveries. “For this reason, it is necessary toexpand and modernise the parcel sorting facilities at a location which will meet futurerequirements,” the company stressed.

Christoph Dammermann, head of the Hamm Business Development Office, added: “The decision by DPDto relocate here demonstrates that Hamm is an attractive logistics location. Its central position,excellent accessibility and the fact that the project can be implemented quickly convinced thecompany to invest at InlogParc.”

Meanwhile, DPD UK has completed construction of its £100 million parcel hub in Leicestershire,East Midlands, ahead of schedule. Construction began in July 2013. DPD said work will now continueto fit out the interior, with conveyor specialists Beumer already on-site installing the automatedsortation system that will run the length of the building.

The hub is set to become the largest of its kind in Europe creating up to 1,000 new full-timejobs and is due to be fully operational in September 2015.

The 33,445 sqm hub, developed by the property group Goodman, is located at Hinckley CommercialPark (owned and managed by Goodman), close to the M69 motorway. It is expected to increase DPD’sparcel capacity by over 65%.

The project is part of the company’s £175 million (€200 million) expansion programme in responseto unprecedented parcel volume growth following the launch of its Predict service, which offerscustomers a one-hour delivery time window for their parcels.

DPD UK CEO Dwain McDonald commented: “The building looks absolutely stunning and for it to becompleted ahead of schedule is a credit to everyone involved. Hinckley gives us significant scopeto expand our capacity and allows us to stay one step ahead of the growth in the online parcelmarket and our competitors.”

“Our current level of investment is unprecedented in the industry and Hinckley is just part ofthe expansion that has taken place in recent times. We’ve also opened 18 new depots around thecountry in the last two years, nine of them being purpose-built developments. As a result, we havebeen creating around 1,000 new jobs a year and 2015 will see us continue with that level ofgrowth,” he added.

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