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Kuehne + Nagel expand Brazilian market

With debt mounting in Europe and unemployment remaining stubbornly high in the United States, some companies are looking elsewhere for growth. As one o...

Freddie Pierce
|Jul 20|magazine10 min read

With debt mounting in Europe and unemployment remaining stubbornly high in the United States, some companies are looking elsewhere for growth.

As one of the worldwide shipping and logistics leaders, Kuehne + Nagel’s strategy is no exception, as the company is looking to move more into Brazil for growth.

Consistent with that approach, Kuehne + Nagel acquired Porto Alegre’s Grupo Eichenberg earlier this week. Family-owned with approximately 700 workers in 14 locations, Grupo Eichenberg is expected to strengthen Kuehne + Nagel’s door-to-door logistics operations in South America.

“This acquisition is in line with our global growth strategy and ideally fits our objective to significantly expand our activities in particular in Brazil, one of the world’s key growth markets,” Karl Gernandt chairman of Kuehne + Nagel International AG, said.

“Grupo Eichenberg complements the service offering and customer base of our strongly performing national company. Together, we are able to increase our value proposition by providing global integrated door-to-door solutions in Brazil.”

Gerson Eichenberg, chairman of Grupo Eichenberg, echoed those sentiments.

“In a dynamically growing market, companies from industry and trade are looking for global logistics solutions, allowing them to create value and increase competitive advantage,” Eichenberg said. “Jointly, we can optimally meet these requirements, and thus further strengthen Kuehne + Nagel’s market position.”

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First-half turnover fell slightly in 2011 for Kuehne + Nagel, but earnings still managed to rise. Gernandt still sees significant challenges the company must meet in the logistics world.

“Market analysts anticipate slower growth in the logistics industry. Nevertheless, the Kuehne + Nagel Group is well positioned to tackle future challenges,” Gernandt said. “The acquisition in Brazil is a significant step.”

Kuehne + Nagel first started its South American outreach in 1962 by opening a forwarding office in Brazil. Before the agreement with Grupo Eichenberg, the company had 25 locations and employed 1,000 people.