DHL Taps China's Euro55 Billion Life Sciences Industry

SHANGHAI, Sept. 21, 2011 /PRNewswire-Asia/ --

-- DHL launches a second Life Sciences and Healthcare Competence Center in China

-- Study shows China to become the world's fifth pharmaceutical exporter, with second largest healthcare expenditure in the world by 2015 (Note1)

As part of its continued investment to tap the growing life sciences and healthcare industry, DHL, the world's leading logistics company, today announced the launch of its Life Sciences and Healthcare Competence Center in Beijing -- the second of its kind in China. According to a study released by DHL, China is projected to become the world's fifth largest pharmaceutical exporter, mainly in Active Pharmaceutical Ingredient (API) related products, and have the second largest healthcare expenditure in the world by 2015 (Note 1) the increasing demand for quality healthcare and a growing middle class.

The study also revealed that in 2010, the Chinese life sciences industry was estimated to be worth euro55.3 billion and is projected to continue to grow rapidly at a compound annual growth rate (CAGR) of 17 per cent (Note 1) between 2010 and 2015. The burgeoning growth of the global life sciences and healthcare industry is expected to create greater need for cold chain logistics service providers like DHL.

"Emerging markets are forecasted to contribute approximately 75 per cent to global pharmaceutical sales growth by 2015 (Note 2). The opening of this second Life Sciences and Healthcare Competence Center in China is a clear testament to the growing demand and opportunity we see in this sector and in Asia Pacific," said Roger Crook, CEO, DHL Global Forwarding, Freight. "We are also heavily investing in the most promising emerging market region, Asia Pacific, particularly in China, where customers' needs are becoming more complex."

Customers shift away from conventional contract logistics services towards an integrated logistics network

The global life sciences and healthcare industry overall has been developing rapidly in recent years with emerging markets demonstrating the greatest growth potential. "Customers are increasingly looking for an integrated logistics network and their requirements are moving more and more beyond conventional contract logistics services (Note 3). We are looking towards a future where governments, manufacturers and logistics services providers collaborate more actively to deliver a truly integrated supply chain. With our longstanding reputation in providing industry-leading logistics solutions, DHL is well-positioned to make a significant impact in the industry," said Angelos Orfanos, President and Global Head of Life Sciences & Healthcare, DHL and Senior Vice President, Global Customer Solutions.

Commitment to China and regional life sciences and healthcare industry

Opportunities for cold chain logistics in emerging markets are especially widespread in China with its fast-rising demand for healthcare and ageing population.

"DHL understands how crucial it is to streamline and integrate supply chains in the growing life sciences and healthcare sector," said Steve Huang, CEO, DHL Global Forwarding, China. "The new center is expected to serve growing Chinese pharmaceutical and biotech companies which require regulatory-compliant cold chain transportation with highest security and quality standards. It is designed to benefit healthcare clients by helping them reduce the risk of temperature deviation during customs clearance.

"The center's capabilities include a specialized, dedicated and trained team, customized standards of procedure for each customer, long-term relationships with airline partners and container providers, as well as 24/7 cargo monitoring, to name a few. These services raise the bar on quality in cold chain logistics services, "added Steve Huang.

The opening of the Competence Center in Beijing follows the July opening of a Life Sciences and Healthcare Competence Center in Seoul, South Korea, as well as the expansion of the existing Center in Shanghai, opened in 2009. The launch of the new 140 m2 temperature-controlled warehouse in the Beijing Capital International Airport brings the total area of DHL Global Forwarding's temperature-controlled facilities in China to nearly 1,000 m2.

The new center will offer life sciences dedicated temperature sensitive storage capabilities (+2C to +8C, and +15C to +25C) with electronic temperature data record keeping and alarm system. At the same time, DHL also offers loading and unloading of cool containers, handling of passive packaging, adding and retrieving of data loggers on request, coordinating with select air carriers for proper booking, and organizing necessary refrigerated trucks for pick-up or delivery.


1. Statistics cited from China Pharmaceuticals & Healthcare Report - Quarter 3 2011, Business

Monitor International

2. Pharmerging Markets June 2011, IMS Health

3. Based on survey results published in Third-Party Life Sciences Global Logistics Study in Eye

For Transport, 2010

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