TPG plans to enter Chinese market, and outlines growth strategy
Dutch postal and logistics company TPG NV aims to enter the Chinese market through acquisitions, joint ventures or by signing up a by signing up a “huge” customer contracts.
(6/18/2004)
Chief executive Peter Bakker told media representatives that the company expects to invest around €200 million in its Chinese operations over the next two years. 62 TPG employees are currently establishing operations in China, and Bakker said he aims to have around 150 Chinese workers by the end of the year.
TPG’s net profit in the first quarter of 2004 was €163 million, up from €140 million the previous year. Bakker said he sees the positive trend in the company’s first quarter profit margins continuing, and stated he expects “a good increase of net profit” in 2004. Cost-cutting should result in annual savings of €40 million.
The Dutch state has said it aims to reduce its stake in TPG from 35% to around 10%. Bakker said he expects the state will start unloading part of its stake in the third quarter of 2004, and TPG intends to buy back up to €300 million worth of its shares.
Growth in the coming years is mainly to be expected from company operations outside the Netherlands, Bakker said. Around 70% of the company’s revenue is currently generated outside the Netherlands.
Last week TPG bought Swedish group Wilson Logistics for €257 million, in what CEO Peter Bakker said was TPG’s first major step in extending its capabilities into the global freight forwarding industry.
TPG has also signalled its intention to enter the German mail market, and although no deals have been made, the company is talking to several parties. German newspapers have reported that TPG may join forces with German logistics group Hermes to become a rival of Deutsche Post AG. TPG recently filed a complaint with the European Commission, alleging that Postbank AG is being indirectly subsidised by its parent company, Deutsche Post World Net AG.
