German logistics giant Deutsche Post DHL said Friday it was selling off its supply chain business in China, but would continue operating the unit under a "strategic partnership".

The deal will see Chinese firm SF Holding -- a national and international logistics firm -- pay 5.5 billion yuan ($791 million, 697 million euros) for the operation.

Deutsche Post DHL's supply chain business allows clients to subcontract their logistics operations, running warehouses and shipping or receiving goods to and from the client's different divisions, suppliers or customers.

As well as the up-front payment, SF Holding will pay the German group fees based on revenue for 10 years to run the operation, which will do business using both firms' branding.

The deal "will create a unique platform to meet the need for a high quality end-to-end supply chain provider in China," Deutsche Post chief executive Frank Appel said in a statement.

"SF Holding's local market expertise in China has real advantages for our customers across all industries."

For his part, SF Holding chairman Dick Wong vowed the deal would "help us to achieve our vision to grow further internationally."

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DEUTSCHE POST

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