Hyundai Mobis (KRX:012330), responsible for supplying all of Hyundai & Kia’s service parts around the world, announced on July 20 that it completed the construction of its central logistics center in Belgium, and commenced normal operations. Hyundai Mobis is planning to improve its logistics system by transforming this center into becoming the logistics hub in Europe.

Hyundai Mobis purchased a 123,000㎡ lot in Beringen, Belgium, and subsequently built a 56,000㎡ logistics center. The Belgian Central Logistics Center will play not only the role of a general logistics center that supplies service parts in the areas that it covers, but also the role of a logistics hub that ships service parts to the regional logistics centers in the UK, Germany, Spain, Italy, Sweden and Hungary.

Previously, the headquarters in Korea had been using airplanes as much as 3 times a week to directly ship necessary parts to respective centers in Europe, whereas the Belgian Central Logistics Center now receives service parts on a daily basis, and delivers them to respective centers by land. In addition, Hyundai Mobis receives parts by freighters 2~3 times a week so that it can instantly meet customer needs without risk of running out of stock.

As a result, Hyundai Mobis expects that it would be able to not only reduce logistics and inventory costs, but also reduce overall lead time, i.e. the time it takes to deliver a certain part to a customer, by at least 2 days.

Hyundai Mobis is striving to improve its logistics system in Europe in the form of preemptive investments in order to supply genuine parts to drivers as quickly as possible since the number of Hyundai & Kia cars being sold in Europe is rapidly on the rise.

Even now, Hyundai Mobis has a close-knit logistics network, including 7 large logistics centers, 92 agencies and 5,742 dealers across Europe, but it has further plans to increase the satisfaction of Hyundai & Kia car owners in Europe by building additional logistics centers in areas where lead time has been increasing.