FedEx has completed the $400 million cash purchase of China’s DTW express network, as well as theChinese group’s 50% stake in their joint venture, roughly doubling the size of its operation in the
country.The acquisition is a major step in FedEx’s plans for growth in China, as it takes over DTW’s89 branches throughout the country and full control of the DTW-FedEx international expresssubsidiary.
“China continues to be one of the fastest growing markets in the express industry and akey to FedEx international growth and profitability,” said Michael Ducker, president of FedExExpress International.
“FedEx is already the industry leader in China. This acquisition will allow us to solidifythat position and ensure our global customers continued access to China.”
FedEx Express is currently expanding its China business rapidly, with four more weeklyflights between the USA and China from this month onwards, giving a total of 30 a week, more thanany of the other major international carriers. The flights are to Beijing, Shanghai and Shenzhen.
The Memphis-based company, which has operated for over 20 years in China as a wholly-ownedforeign enterprise, also opened a 1,200 sqm ultra-modern handling facility in the north-easterncity of Dalian last summer and a new branch in Qingdao in the northern province of Shandong.
