UPS Has Ambitious Plans for European Logistics Business
In an interview with Handelsblatt, the logistics chief of United Parcel Service (UPS) outlined the U.S. giant’s plans to expand its logistics business in Europe.
“We’re aiming for 30% annual growth in the sales revenue of UPS Logistics Group for 2002 and the subsequent years,” said Joseph Pyne, the member of the UPS board with responsibility for UPS LG.
According to Pyne, UPS LG plans to achieve a combination of internal growth and growth through company takeovers. But he dismissed reports that his company is among the parties interested in Germany’s Stinnes AG, and particularly Schenker AG, its overland transportation unit. Other companies whose names have been mentioned in this connection include Swiss Kühne & Nagel and German rail operator Deutsche Bahn.
According to industry insiders, UPS has held talks on a takeover of Stinnes, but reports suggest that it’s not interested in the full group, which includes activities in chemicals and materials logistics. As part of its plan to dispose of non-core businesses, German utility giant E.On AG plans to sell its 65.4% stake in Stinnes before the end of 2002.
UPS recently bought US logistics company Fritz and German company Uni-Data, based in Munich. Pyne described Uni-Data as the backbone that the company would use to support further growth in Europe. The Munich-based company specializes in logistics solutions for high-tech sectors, and its key clients are computer firms, including Dell and IBM. This year, it’s aiming to lift its annual sales from 200 million euros to 240 million euros.
UPS LG has been active in Europe since 1995. In 2001, its sales revenue came in at $1.35 billion, up 32% on the year.
