Hyundai Mobis opens distribution center in Belgium

Hyundai Mobis opens distribution center in Belgium. July. 21, 2016 06:56. by 김창덕기자 drake007@donga.com.

Hyundai Mobis' central distribution center in Belgium has started operation, expected to be the company's distribution hub in Europe.

Hyundai Mobis made an announcement on Wednesday that the construction of the distribution center is complete in Beringen, Belgium, and the area of the building is 56,000 square meters while the area of the entire premises being 123,000 square meters. The distribution center will supply components for the Hyundai and Kia Motors customer service in the area as well as send components to local distribution centers in the UK, Germany, Spain, Italia, Sweden, and Hungary.

Hyundai Mobis had transported components from the main facility in Korea to each center in European countries three times a week by plane, but now the distribution center in Belgium will make the process much more efficient. Not to mention reduction in transportation and inventory costs, the delivery time for components after receiving a customer request will reduce to two days, according to the company. Last year, the number of Hyundai and Kia cars sold in Europe was 8.6 million units, more than doubled from 4 million in 2005.

"As Europe is the back yard of car makers with a long history, it is very difficult for an outside car maker to enter the market," said Lee Hyung-yong, the chief of Hyundai Mobis Service Component Center. "We will build a stronger distribution network as smooth component supply for customer service is the most important element that increases brand loyalty.