UPS strengthens Bucharest presence on tough market

Parcel services company UPS invested in upgrading and expanding its portfolio of services in Romania last year with the launch of domestic express pick-up and delivery services and leased a new facility for its small package and supply chain solutions operations at Bucharest-Otopeni airport, according to Michael Mavropoulos, regional director of UPS Greece, Balkans & Mediterranean. This became the firm’s largest location in Romania.

The company runs other pick-up facilities in Bucharest, Constanta and Timisoara.

“The main factors shaping the small package delivery market in Romania last year were no different from those in other countries in Europe. With diminished trade and consumer spending alongside increased unemployment and all the other issues associated with a worldwide downturn, conditions were far from ideal,” Mavropoulos told Business Review.

Organic growth through acquisitions is always an option for UPS, he commented.

“We are always looking for opportunities to enhance our ability to better serve our customers. If we feel our customers’ best interests are served by acquiring a company, then that is always an option for UPS,” Mavropoulos said.

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“UPS has typically built up its business across Europe through a combination of organic growth and acquisitions.” Without disclosing sales figures for Romania, the regional director added, “On a global basis, just like everyone else, our business was affected by the worldwide economic downturn in 2009. The financial crisis led to a decline in consumer spending and business trading activity and, consequently, in fewer shipments being moved than in 2008.

”However, he noted, the company maintained its industry margins and expanded its market share outside the US, despite the difficult environment.

“We’re optimistic about the future. Economic recovery is now under way in many regions of the world […],” said Mavropoulos.

Corina Saceanu