* New DHL service to reduce Germany-Austria delivery time
* Move follows similar steps in other European countries
* Austrian Post says takes development seriously (Adds Austrian Post comment)
FRANKFURT/VIENNA, Aug 18 (Reuters) - Deutsche Post DPWGn.DE plans to invest over 100 million euros ($111 million) to establish its own parcel network in Austria tailored for e-commerce, it said on Tuesday.
It said the new service should reduce delivery times from Germany to Austria to one day. Many Austrian consumers order goods online from Germany since companies like Amazon AMZN.O do not have a unit specifically for Austria.
The move follows similar steps in the Benelux countries, Poland, the Czech Republic and Slovakia by Deutsche Post, which recently settled a bitter dispute with workers in Germany about the establishment of new parcel divisions offering lower pay.
A spokesman for national rival Austrian Post POST.VI said: "Naturally, we observe this and take it seriously. Deutsche Post is not just anyone."
He said that currently Deutsche Post sent goods ordered from Amazon to Austria and Austrian Post delivered them to customers.
The spokesman added that Austrian Post expected the parcel-delivery market to grow between 3 and 6 percent including foreign deliveries this year and 5 to 6 percent in Austria.
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