KLG Logistics, one of the important players on the European specialized industry, has big plans in Romania. This year, the Dutch group estimates a business increase by 10 percent from EUR 25 million in 2014, consolidating its position on the Romanian logistics market, a press release informs.
For the current year, the company has budgeted an advance of turnover comparable to that of 2014. Also KLG Logisitcs continues the investment program in the new warehouse and crossdock terminal opened in the last quarter of 2014.
„Medium and long term strategy of KLG Europe Logistics Romania is based on organic growth, that’s why we chose a linear advance, allowing us the development that we want. Achieving the milestone of EUR 25 million was expected relying on companies’ increasingly higher opening to the outsourcing of logistics and distribution services. The increase of customer portfolio is one of this year’s priorities and we are optimistic as we already have advanced discussions with 10 new companies that have chosen to outsource their distribution and logistics operations,” Drago? Gele?u, Managing Director KLG Europe Logistics România said.
According to him, the business growth estimated for 2015 takes into account both the increasing trend of outsourcing market, which is non-core business, and the possible negative impact of the international context, such as the Russian crisis.
For 2015, the company has budgeted a minimum investment of EUR 500,000, coming from own sources. The funds are allocated to purchase new equipment and technology for storage capacity.
In 2014, Romania KLG Europe Logistics has completed a new crossdock terminal that ensured the development of approximately 20 percent of the company’s storage capacity at national level, following EUR 5.6 million investment.
„Depreciation costs of this new investment have led us to estimate that the profit margin will stay within the parameters of previous years, so that for 2015 we estimate a gross profit of EUR 1.3 million,” Drago? Gele?u added.