Austrian Post and trans-o-flex set course for expansion in Europe

Austrian Post and its German logistics subsidiary trans-o-flex will continue pursuing an expansion course in Germany and Europe, with the intention of acquiring additional companies. This was announced by Anton Wais, Chairman of the Management Board of Austrian Post, and Klaus J. Heinz, Speaker of the Management Board of trans-o-flex, speaking at a joint press conference in Frankfurt today.

Enhancement in the value of the trans-o-flex brand
"trans-o-flex offers an ideal strategic platform for the further international expansion of Austrian Post", Anton Wais says in commenting on the joint strategy. "We will further exploit the success of trans-o-flex as a brand and increase its value. We affirm our complete support for the company and its management in their efforts to continue pursuing the business strategy which has been mapped out, attracting customers through innovative industry solutions and quality leadership", he adds. As a consequence of the acquisition of a 74,9 % stake in trans-o-flex at the end of 2006, Austrian Post has been able to considerably strengthen its Parcel & Logistics Division, promote the market entry into the B2B parcels segment in Austria (shipments among companies), and accelerate its international expansion efforts. The formal closing of the transaction involving the acquisition of the companies "Van Osselaer Pieters Colli Service" (VOP) in Belgium and "Dedicated Distribution Services" (DDS) in the Netherlands first took place on October 1, 2007. "These firms will be integrated into EURODIS, the European distribution network of trans-o-flex, as soon as possible, as a step towards strengthening the network", Anton Wais says. VOP and DDS are former trans-o-flex subsidiaries, which had been acquired by DHL in the interim.

Unique selling proposition: clear-cut sectoral focus and combined freight
"With these partners, trans-o-flex will be able to decisively expand its market position in the Benelux region, which is very important for our customers", adds trans-o-flex CEO Klaus Heinz. "Together we will profit from the above-average growth in international mail volumes". In the light of tough competition in the European logistics market, trans-o-flex will continue its strategy of achieving "controlled, profitable growth", consistently taking advantage of the company's distinguishing features. trans-o-flex is the only large logistics provider with a clear-cut focus on particular branches. In addition, as a provider of "combi-freight" services, it is able to offer customers extremely flexible service under one roof, through the combined transport of good either as parcels or pallets. The company's core branches are the pharmaceutical, health care, cosmetic, consumer electronics and home entertainment industries with special logistics requirements. "We are the undisputed market leader for the pharmaceutical and health care sectors, and want to stay the number one", Heinz says. "With our latest innovations, we clearly demonstrated how we even intend to expand our market position".

Innovation on behalf of the pharmaceutical industry
trans-o-flex recently launched a new service which makes it the very first logistics company enabling its customers to meet the increasingly stringent legal requirements pertaining to the transportation and storage of medical products. The "ThermoControl" premium service, available starting in November, will enable drug manufacturers for the first time to fulfil the stipulations contained in the new German Ordinance on the Production of Pharmaceuticals and Active Substances (AMWHV), requiring the ongoing monitoring and documentation of critical parameters. Specially-designed equipment measures and records temperature and air humidity throughout the entire transport process. Two light emitting diodes optically indicate whether or not the selected temperature range has been kept. If, for example, the temperature range has been exceeded or fallen below, the goods will be subject to a special treatment procedure that depends on the individual standards defined by the dispatcher. Options range from marking and storing the products away to returning them to the dispatcher. Moreover, trans-o-flex also introduced to its customers the new "Premium Delivery" service, which is designed to enable recipients to further optimise their internal flow of goods. "As a result, we will be able to significantly reduce the workload for recipients such as hospital pharmacies and the wholesale pharmaceutical sector", Klaus Heinz adds.

Strong presence in Germany
In addition to trans-o-flex, Austrian Post operates on the German postal market through its subsidiaries AUSTRIAN POST International, meiller direct and Scanpoint. These companies specialise in national and international letter mail as well as mailings. Total revenues of the four companies, which have approximately 2,250 employees, is about EUR 600m.

Rapid growth in Eastern Europe
Austrian Post also aims to expand its business activities in the parcels and specialist logistics segments in Eastern Europe, on the basis of its parcel services companies in Croatia (Overseas), Slovakia (SPS and In Time) as well as in Hungary (Merland Express and Road Parcel). At present, Austrian Post directly or indirectly employs more than 4,500 people in these countries, achieving above-average growth rates.

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