(Yicai Global) March 11 -- Germany's DHL, a leading provider in the global logistics sector, and SF Holding have set up a co-branded division in Shanghai as the delivery titan helps the Chinese courier make its first foray into supply chain distribution.

The pair founded SF DHL Supply Chain China today, the Beijing News reported. It will provide solutions for the high-tech, healthcare, retail, consumer goods, automotive, chemical and e-commerce sectors and install Zou Yin, who was chief executive of DHL Supply Chain China, as its CEO.

The new brand will bring new capabilities to a range of supply chain scenarios and help SF gain recognition from more multinational companies that are potential clients, SF Chairman Wang Wei said at the event celebrating the new unit.

Shenzhen-based SF and DHL agreed to partner up in October, with the former offering CNY5.5 billion (USD818 million) to acquire all of DHL's subsidiaries in Hong Kong and Beijing and its supply chain business on the Chinese mainland and in Hong Kong and Macao. The deal does not involve DHL's international delivery, freight transport or other services in China.

The target firms' strengths lie in transport, warehouse management and value-added services for corporate customers, SF said in a statement at the time, adding that they also have abundant experience in the automotive, healthcare, consumer electronics and semiconductor fields and can offer logistics in bonded areas, pre-production logistics, dust-free chambers and other special services.

Editor: James Boynton