October 11, 2017: Federal-Mogul Motorparts, a division of Federal-Mogul LLC, has agreed to a multi-year contract with Kuehne + Nagel to operate its new automotive replacement parts distribution center near Budapest, Hungary.
Located in Páty, 22 kilometers west of Budapest, the state-of-the art warehouse has a 23,000 sqm storage area and offers a full range of inventories for its target markets with well-known brands like as Ferodo, Jurid, Champion, MOOG, Payen, Goetze and BERU. The facility will employ more than 160 people and has the potential to be expanded by at least 33 percent to support volume growth or changing trading profiles.
This new built-to-suit logistics hub is about to be fully operational, following a successful test run. The logistics complex will serve customers in Southern, Eastern and Central Europe in conjunction with the company’s new distribution centre in Willebroek, Belgium; the Páty facility will also serve customers in Africa and other markets adjacent to the EU.
“Together with our new distribution center in Willebroek, our regional warehouses and improved supply chain capabilities, we believe this new facility positions Federal-Mogul Motorparts to be the first choice for customers in our product categories,” explained Andrew Sexton, president, EMEA Aftermarket and Regional president, EMEA, Federal-Mogul Motorparts.
Under the terms of the contract, Kuehne + Nagel will operate the facility, providing contract logistics services, such as warehouse services, receipt of goods and pick and pack operations, plus value-added services including labelling and kitting in customer-specific product configurations.
“It proves our capabilities to specifically address the logistics needs of globally operating companies and underlines our expertise to deliver solutions that create day-to-day efficiency benefits and quality. This new contract is a key strategic win for Kuehne + Nagel in Hungary and reflects our business strategy to continuously strengthen our presence in automotive replacement parts logistics,” said Gianfranco Sgro, member of the managing board of Kuehne + Nagel International AG, responsible for Contract Logistics.