GXO announces multi-year expansion in Germany

GXO has announced that it is commencing a multi-year plan to significantly expand the Company’s operations in Germany, Europe’s largest logistics market. In its initial phase, GXO is investing in a new, 387,000 sq ft warehouse in Dormagen, a key logistics location in the Dusseldorf region, that will be a showcase for GXO’s advanced warehousing solutions.

Richard Cawston, GXO’s President, Europe, said: “One of the many benefits of our acquisition of Clipper was growing our presence in Germany. We are very excited by the significant growth opportunities in this highly attractive market. Our expansion brings to the market a new approach, new energy, as well as offering greater choice than traditional logistics providers. We’re seeing increasing demand to partner with GXO from existing and new customers in ecommerce, fashion, and consumer technology, because of our agility, unique capabilities and tech expertise.”

Germany’s contract logistics market, estimated at $20bn in annual revenue, is expected to grow rapidly due to the ongoing modernization of supply chains, acceleration of nearshoring, and increasing demand from companies to outsource to reduce costs, improve efficiency and deliver a best-in-class consumer experience. The market’s high demand for technology-enabled, customized, agile logistics solutions makes GXO an ideal partner for companies operating in Germany.

The state-of-the art Dormagen facility will be a launchpad for GXO’s market expansion, led by Stefan Van Hoof, who was recently named GXO’s Managing Director of Central Europe, reporting to Richard Cawston. Stefan Van Hoof joined GXO through its 2022 acquisition of Clipper, where he served as CEO of Mainland Europe, and has over two decades of logistics industry experience and a proven track record of driving profitable growth.

“I’m looking forward to leveraging GXO’s best-in-class technologies and customer-centricity to shake up the logistics landscape and rapidly grow our operations in Germany,” added Van Hoof. “Our bespoke offering and cutting-edge technology clearly differentiate GXO in the market and make us an ideal partner for customers looking to evolve and modernize their logistics and warehousing solutions.”

In keeping with GXO’s commitment to sustainability, the new site will target a DGNB Gold Certification and include a range of energy efficient features. GXO is expecting to employ up to 400 team members at full capacity and will implement automation and adaptive technology like goods-to-person and autonomous mobile robots on site based on customer requirements.

GXO has operated in 15 countries across Continental Europe for more than 25 years, serving customers in e-commerce, fashion, FMCG and DIY industries. In Germany, GXO serves businesses like sOliver, Dextro, and Ghostbike, as well as global companies including Kellogg. GXO also directly serves the German market from sites in Poland and the Czech Republic for companies like Zooplus and works across Europe and globally with leading German businesses such as Henkel, BASF, Bayer and OBI to support their logistics operations. The company currently employs approximately 34,000 team members at roughly 500 sites across the region.

Source: GXO