Damco is to separate European operations into east and west. The move is designed to enable it to target faster-growing companies in the Eastern European markets while leveraging the current economic pain in Western Europe to attract big customers eager for supply chain efficiencies.
“The European markets are complex, large and diverse and to be successful in these markets we need to work with quite different strategies between the more mature and the growth markets,” said Damco CEO Rolf Habben-Jansen, who plans to double Damco’s revenue by 2014.
“We will absorb additional cost in the first two quarters because of the restructuring. This is the right thing to do to position us for the years to come. When the changes are all implemented at the end of the second quarter, Damco will be in a stronger position to address the very different needs of these diverse markets.”
Two CEOs with responsibilities for East and West Europe now report to Habben-Jansen.
Nicholas Kyrzakos, Damco’s former Global CFO, will lead Damco’s new East Europe region, which includes parts of the Middle East. Damco is the AP Moller – Maersk logistics business.
Flemming Frost will continue as CEO of West Europe Region after formerly heading the entire European operations. “We are a relatively small player so we have time to develop our agenda and see it as a chance to get in front of big customers,” he said.