Pepco to set up logistics base near Hungary, create 1000 new jobsAll Articles
Discount apparel and household products retailer Pepco, subsidiary of South African based investment company Pepkor, will set up a HUF 27.2 billion regional logistics center in Gyal, on the outskirts of Budapest.
The 100,000 sq mt base will be completed by 2022, enabling the company to serve all the countries in the region. The investment will create more than 1,000 jobs in total by its completion in 2022, while also establishing a market for local firms by distributing Hungarian products.
Pepco will serve 140 domestic stores, as well as an additional 500 units in the Czech Republic, Slovakia, Romania and Bulgaria from the new base. The company will receive government incentives worth HUF 1.9 billion. The performance-based incentive is contingent on the company meeting capital investment targets.
Robin Taylor, Managing Director of Pepkor Hungary, Pepco's Hungarian unit, attributed the investment to the company's fast expansion, adding that the location for the base was picked because of its geographical position and advanced infrastructure.
The Minister of Foreign Affairs and Trade Peter Szijjarto noted that the logistics sector accounted for 6.2% of Hungarian GDP in 2018, generating HUF 4 trillion and providing work for a total of nearly 300,000 people, more than the automotive industry, while the 34% expansion in investments in the sector was double the average growth in domestic investment.
PEPCO operates as a clothing and home products store. The company offers toys and education, makeup, newspapers, seasonal articles and decorative items. Formed in 2004, Pepco operates a total of 1,600 outlets in the Czech Republic, Croatia, Estonia, Latvia, Lithuania, Hungary, Poland, Slovakia, Slovenia, Romania and Bulgaria, employing some 16,000.
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