DHL opens second China life sciences centre
As part of its continued investment to tap the growing life sciences and healthcare industry, global logistics company DHL, has announced the launch of its Life Sciences and Healthcare Competence Center in Beijing – the second of its kind in China.
October 1, 2011
DHL opens second China life sciences centre
As part of its continued investment to tap the growing life sciences and healthcare industry, global logistics company DHL, has 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, driven by 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 €55.3 billion and is projected to continue to grow rapidly at a compound annual growth rate (CAGR) of 17 per cent 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. 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,” he added. DHL also noted a general industry trend of pharma companies shifting away from conventional contract logistics services towards an integrated network logistics solution. “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 industryleading logistics solutions, DHL is wellpositioned to make a significant impact in the industry,” said Angelos Orfanos, president and global head of Life Sciences & Healthcare, DHL and senior VP, Global Customer Solutions. “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 centre is expected to serve growing Chinese pharmaceutical and biotech companies which require regulatorycompliant 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 opening of the Beijing facility follows the July opening of a Life Sciences and Healthcare Competence Center in Seoul, 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 +15 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 organising necessary refrigerated trucks for pick-up or delivery. Expanding China footprint Meanwhile, DHL Global Forwarding has also expanded its logistics services network in China to meet the demands of shifting manufacturing patterns. The company announced the opening of five new branch offices, of which two are located in the country’s most important inland regions – Zhengzhou city in Henan Province and Taiyuan city in Shanxi Province. The other three offices are located in Tier three cities – Wenzhou (Zhejiang Province), Xuzhou (Jiangsu Province) and Huizhou (Guangdong Province). DHL said the move is aimed at better meeting the fast growing demand in central and western China for logistics services of international standards. DHL Global Forwarding also plans to establish two more branch offices and 20 sales offices, with the aim of achieving 30 per cent coverage in Tier 3 cities by 2015. The opening of DHL Global Forwarding’s newest offices follows a major government drive to encourage China’s manufacturing industry to shift from coastal areas like the Yangtze River and the Pearl River deltas, towards the central and western regions. “With the development of central and western China becoming one of the Chinese government’s priorities as part its 12th five-year plan to speed up the industrial transfer to inland areas, DHL has benefitted from a rapid build-up of infrastructure in these regions,” said Crook. “Foreign investment into the central and western regions is being strongly encouraged by central and provincial governments,” continued Crook noting that foreign direct investment (FDI) to central and western China surged by 27.6 per cent year-on-year in 2010, compared to 15.8 per cent year-onyear in the eastern regions, according to Chinese Ministry of Commerce statistics.