German mail and logistics company Deutsche Post DHL is "aggressively" investing in the expansion of its business in online retailing and emerging markets, even as many other German firms plan to hang onto their cash rather than invest it, the group's chief financial officer has said.
The postal firm intends to tap the boom in online shopping, particularly in emerging markets, according to CFO Lawrence Rosen, who said he expects the group's capex (capital expenditure) in coming years to remain high.
German firms are planning to invest a total of 136 billion euros ($184.5 billion) in the growth of their businesses, some 18 percent less than they spent in 2013, according to General Electric's European Capex Barometer released earlier this year.
"We have a pretty aggressive capex plan. We are investing in a couple of mega trends we have seen over the last year of ecommerce and the emerging markets (EM). Even though growth has slowed down a bit in the EM and Asia compared to a couple of years ago, it is still a very healthy growth rate and our aim is to increase our presence in EM and we are investing a lot for that," Rosen told CNBC.
"In Germany we are investing in our parcel technology and facility and capacity to take advantage of the boom in ecommerce online retailing," he said adding the group's capex plan is "higher this year than last year and we expect it to stay at that relatively high level."
Rosen said even though Deutsche Post was planning on spending, it was understandable that other firms are not doing the same, even with such low interest rates, given the "relatively weak economic environment".
"I can't really speak to others but it is not the case for us. We are investing in our strategy, it has been successful and we expect it to be successful in the next years, capitalizing on those strong trends," he said.