CEVA Logistics – the global contract logistics and freight management group created from the merger of the former TNT Logistics and Eagle Global Logistics (EGL) – has announced plans to invest €6 million on a distribution centre in Brazil during the first half of this year. Th is is in addition to its main Distribution Centre (DC), in Jundia¨ª, in the state of Sao Paulo, Brazil. Th is new addition will double the size of the location, giving it 25 thousand square meters for storing electronics, consumer goods, and office supplies.
At the Jundia¨ª DC, CEVA carries out reception, storage, shipping, and transport management activities for customers like Nivea, ABN Amro, and Philips. Currently, the site has a 10 thousand pallet position capacity; following the expansion the capacity will grow 110 per cent, the group said.
The DC will meet the requirements for TAPA certification, which was created for the technology industry with the aim of promoting security throughout the supply chain.
"CEVA has set a growth target of 10 per cent for 2008 and in order to reach this number, the company needs to off er the infrastructure and solutions for increasing business possibilities to our current and future customers," said Paulo Franceschini, business development director for CEVA Logistics South America.
The customers served by the DC in Jundia¨ª were responsible for 3 per cent of CEVA’s global turnover for 2007 and once the expansion is complete the company expects to grow this figure to 6 per cent.
CEVA has also been selected to take over production line feeding for the new Volkswagen SUV (sports utility vehicle) Tiguan serial production at Auto 5000 in Wolfsburg, Germany, extending an already ongoing relationship with Volkswagen for its Touran SUV model.