Automotive logistics company Gefco is to invest heavily in expanding its operations in Central and Eastern Europe. Chairman and chief executive Yves Fargues hinted last week that acquisitions are in the pipeline, and pointed to Turkey as one of the target countries, being the “natural gateway where East meets West”.
Fargues said he is confident the downturn affecting western economies will not affect the business’ growth plans, nor its target of achieving a 4.7 billion euro turnover by 2012. “We’ll be able to adapt to any downturn situation. It is our position in the market that is most important to us, not just our sales numbers.”
Gefco, which is part of the Peugeot Citroen group, expects to be achieving 40 per cent annual growth by 2012, with a ten per cent operating margin.
Port infrastructure expansion is also on the cards, with particular focus on strengthening positions in the Baltic and Black Seas. This will help provide direct access to Russia, a country seen as pivotal to its ongoing growth strategy.
One of the flagship projects for this year is the export of new vehicles produced in China to Russia. Plans are in motion to develop rail networks in these areas, because neither country has enough road support. Fargues also outlined railroad development opportunities in Latvia and Kazakhstan.
Gefco is also planning to expand its offering in areas outside of automotive such as retail and electronics.