KN Hungary: Multi-year contract with Federal Mogul Motorparts

New distribution center near Budapest will provide next-day deliveries to Eastern Europe and lead time reductions to the Middle East and North Africa

KN Hungary: Multi-year contract with Federal Mogul Motorparts

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. The opening ceremony took place in the presence of Hungarian Prime Minister Viktor Orbán.

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 will serve customers in Southern, Eastern and Central Europe in conjunction with the company’s new distribution center in Willebroek, Belgium; the Páty facility will also serve customers in Africa and other markets adjacent to the EU. This investment reflects Federal-Mogul Motorparts’ ongoing strategy to optimize the performance of its supply chain and provide the world-class delivery performance its customers expect.

“The opening of our new distribution center in Hungary is the next logical step in our effort to better serve customers, including our long-term goal of being best-in-class in order-to-delivery time,” explained Andrew Sexton, President, EMEA Aftermarket and Regional President, EMEA, Federal-Mogul Motorparts. “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.”

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.

“We are very pleased to enter into a partnership with Federal-Mogul Motorparts in Hungary,” said Gianfranco Sgro, member of the Managing Board of Kuehne + Nagel International AG, responsible for Contract Logistics. “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.”;