MUNICH – Gefco, one of Europe’s largest auto logistics providers, is muscling into central Europe to take advantage of the auto industry’s rapid expansion in the region.
“We are busy creating fully owned subsidiaries in central Europe,” said Peter Reinshagen, a marketing executive with the company during a logistics event here.
Gefco already has subsidiaries in Poland, the Czech Republic, Slovakia and Russia and is in the process of establishing businesses in Hungary and Romania.
Gefco sites in the Ukraine, Croatia and Slovenia are likely to come next, Reinshagen said.
Part of this effort will benefit PSA/Peugeot-Citroen, Gefco’s parent, which plans to produce at least 500,000 cars a year in the region.
About 200,000 will come from the Czech plant it operates in Kolin with Toyota. At least another 300,000 will come from its plant in Trnava, Slovakia, which is set to start production in mid-2006.
Gefco handles both inbound parts and finished cars outbound.
“To support PSA’s plants in the Czech Republic and Slovakia, Gefco has expanded aggressively in central Europe,” says UK consultant Transport Intelligence in a report.
About three-quarters of Gefco’s E2.9 billion revenue in 2004 came from the auto industry. Business with PSA contributed more than half of Gefco’s auto revenue.
Gefco is also expanding in South America and in China, two locations where PSA also is increasing its production capacity.