United Parcel Service’s CFO Kurt Koehn made a big strategic announcement this month — he told German daily newspaper Sueddeutsche Zeitung that the company will invest $1 billion in Europe over the next three to five years. Though the full details won’t be revealed until November, Koehn provided some interesting snippets. Investments will be mostly in Germany, with emphasis on developing more logistics hubs. In terms of sector specialization, health care will be the focal point.
If we look at Germany’s growth prospects and UPS’ course of action in recent times, the announcement does not surprise; here’s why.
Germany is the eurozone’s biggest economy and growth driver. With fresh investments in the region, UPS can position itself better in comparison to rivals that are equally intent on milking the German recovery. Increased focus on health care could help derive big gains. The stage is set for UPS to up the ante in Europe.