Reuters reported today that transportation and logistics company UPS is going to invest $1 billion into its European operations. this expansion programme will focus primarily on the logistics hubs across the continent.
UPS CEO , Kuehn, estimated that much of the $1 billion investment will be concentrated on its German market, which he said is one of UPS’s fastest growing markets. Much of its investment will be acquisitions mainly in the healthcare sector, in which the transportation of medicines stands as a “logistical challenge,” due to changes in temperature.
UPS Public Relations Director Susan Rosenberg has said that this expansion does not reflect any major change in the company’s existing capital planning going forward.
“UPS has experienced solid growth in Europe, in fact better than the underlying market growth there,” says Rosenberg. “We continue to invest for growth there. Long term benefits for all of our ongoing investment is to help our customers expand within and across regions around the world through infrastructure and technology improvements and the solutions that we assemble to meet varying needs of industry segments.”
UPS reported first quarter revenue increased by a healthy 2.6 percent to $13.8 billion. Furthermore international export shipments for the quarter were up 7.7 percent and paced by a 15 percent increase in Europe, with the company saying in its second quarter earnings that transborder shipments in Europe continue to expand rapidly as customers migrate to Pan-European distribution using UPS solutions. UPS also announced the completed expansion of its Cologne, Germany, air hub, which represents a $200 million investment that increased facility capacity by a massive 70 percent.
UPS was an early investor in European operations with Germany as its hub, thereby helping with solid export volume growth over the past decade.UPS Chairman and CEO Scott Davis said their last quarter results is a good indication that Europe’s economy is beginning to recover.
In established European markets such as UK France and Spain UPS has delivered plus 17% growth,says UPS International President Jim Barber.
The European market has been the hub for UPS growth and its development worldwide. Barber says, “Our customers continue to value the capabilities and solutions that we provide to support the single market economy. One of the most rewarding components of our Europe growth is to see the success of our recent acquisitions.”
UPS will continue to grow both organically and through acquisition.
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