Belgian group Univeg has confirmed it is selling its Russian logistics arm, a key fresh produce service provider to the Russian retail sector, as it bids to safeguard future growth by concentrating on core commercial activities.
Despite investing significantly in developing its business in Russia over the past eight years, the company has opted to sell the subsidiary to FM Logistic, a French company based near Strasbourg.
While Univeg evidently sees the expansion of a logistics operation – and ultimately a fresh produce import business – in Russia as surplus to requirements and an unnecessary distraction from major markets in Europe and Asia in particular, for FM Logistic the opportunity to reinforce its position as a leading logistics provider is regarded as a highly promising one.
In acquiring Univeg's Russian division, FM Logistic appears set to make in-roads into a growing market for imported fresh fruit and vegetables by adding temperature-controlled facilities for fresh produce and offering state-of-the-art logistics services.
'Thanks to this acquisition, we can strengthen our position in the industry and expand our logistic operations with temperature-controlled services as we continue to invest in Eastern and Central Europe, particularly in Russia,' commented Jean-Christophe Machet, chief executive of FM Logistic.
'The existing management team of Univeg Logistics Russia will stay in place and the current strategy will be persevered. This implies continuity for employees and customers as FM Logistic will further deliver high-quality, temperature-controlled warehousing and transportation services to its customer base.'
Seamless transition
FM Logistic is already an established contract logistics and transportation service provider, and more recently began investing in warehousing and transport for fresh produce.
The company already operates ten centres in Russia, covering around 400,000m2 and employing 5,500 staff.
Univeg Logistics Russia operates three platforms close to Moscow covering a total of 100,000m2, employing around 700 staff and generating an annual turnover of €45m euros in 2012.
Last November, Univeg secured a lease on a new 20,000m2 warehouse in Bykovo, south-east of Moscow in the district of Ramensky, at one of the region's largest industrial warehousing sites.
It also runs a warehouse facility for perishables in Novokosino, east of Moscow, and a further two at the Trilogy Park in Tomilino, south-east of the city.
The group's Russian logistics arm was founded in November 2005 and has undergone significant expansion in the past four years.
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