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DHL invests in Sweden as Posti sells off road business

Image of DHL's new Gothenburg terminal

DHL Express is investing SEK 110 million (€12 million) in a new terminal at Gothenburg Airport in
western Sweden but Finnish postal operator Posti is divesting its Scandinavian road transport
business in its latest downsizing move.

Swedish airports operator Swedavia said it has signed a ten-year agreement with DHL Express,
equivalent to SEK 110 million, for a brand-new 7,500 sqm terminal facility with offices at Göteborg
Landvetter Airport, the country’s second-largest airport.

The existing but outdated 1,700 sqm logistics terminal will be demolished and a brand-new
7,500 sqm facility will be built. The new property will be located near the terminal adjacent to
the northern section of the airport area. Construction work is expected to begin in the spring of
2015 and be under way for a year.

The deal is the latest development of logistics properties at Göteborg Landvetter Airport.
Within the scope of Airport City Gothenburg, an area corresponding to two million square metres is
being planned for operations in logistics, retail and experiences, offices, hotels and conferences.

“We are extremely pleased that DHL Express is investing in a new facility at Göteborg
Landvetter and will be part of the amazing development under way here at Airport City, with a rail
connection and expanded terminal,” said Charlotte Ljunggren, airport director at Göteborg
Landvetter Airport.

“This is an historical investment in Gothenburg and Sweden. It enables us to increase the
quality of our service to small and medium-sized companies in the region. The new, modern terminal
will also improve the workplace environment for our employees,” commented Ted Söderholm, managing
director of DHL Express Sweden.

DHL Express has two main gateways in Sweden with direct flights at Stockholm’s Arlanda
airport and at Landvetter (Gothenburg) while its Malmo facility is served by flights through
Copenhagen airport.

Meanwhile, Finnish postal operator Posti is selling off its Scandinavian road freight
operations and its road, air and sea freight forwarding business in Finland in a further move to
improve the profitability of its logistics business operations.

The activities, employing approximately 140 people in Sweden, Norway, and Denmark as well as
50 people in Finland, will be taken over for an undisclosed sum by Danish-based Nordic Transport
Group (NTG). The deal should go through by the end of Q2, 2015. In the future, Posti will provide
international freight services to its customers through a partnership network.

The company stressed that the transaction does not include its operations in Finland, the
Baltic countries and Russia. Posti will continue to provide logistics services in Finland in parcel
services, company transport services, and supply chain solutions. In Sweden, Posti will continue in
parcel operations that will keep growing thanks to e-commerce, as well as the existing storage
services in Norway.

“This transaction is a continuation of the measures for improving logistics profitability
and focusing on our home area. Already last year we restructured our operations in Scandinavia.
With this transaction, NTG becomes a significant partner for Posti. By cooperating with NTG and
other international players, we can offer our customers high-quality services in the field of
international freight, too,” said Jukka Rosenberg, Senior Vice President, Posti’s Parcel and
Logistics Services. 

Posti explained that it expanded in the Nordic region in 2005 as part of its
internationalisation strategy in logistics but the decline of the economy and intense competition
have weakened the profitability of logistics operations. In accordance with the new strategy
published in 2013, Posti is focusing its operations on Finland, Russia, and the Baltic countries.
Posti’s market share of the Scandinavian international freight business has been small. In
Scandinavia, Posti operated under the brand Itella Logistics.

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