Kuehne + Nagel has signed a contract to run a newly built automotive service parts distribution facility near Budapest, Hungary for Federal-Mogul’s aftermarket division, Federal-Mogul Motorparts.

The parts distribution facility (PDC), which is located in Páty, will supply service outlets in southern, eastern and central Europe in conjunction with Federal-Mogul’s distribution centre in Willebroek, Belgium. The Páty facility will also serve markets in Africa and those in adjacent EU countries according to a statement from Kuehne + Nagel.

Andrew Sexton, president of EMEA Aftermarket and regional president, EMEA, Federal-Mogul Motorparts, said the facility would help the company achieve the best order-to-delivery times.

Kuehne + Nagel will operate the facility, providing contract logistics services, including, receipt of goods and pick and pack operations, plus value-added services including labelling and kitting in customer-specific product configurations.

The facility has 23,000 sq.m of storage and will stock the full range of Federal-Mogul brands.

“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, responsible for Contract Logistics. “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.”