Michelin Invested in New Logistic Center to Cater European Tyre Market from Hungary
The French tyre maker, Michelin, is going to expand its reach in European tyre markets to 15 countries by investing into a new logistics center to be located in Hungary. Michelin’s Vac logistics center would be established to improve the company’s ability to serve its European customers, primarily in the region of Albania, Austria, Bulgaria and Czech Republic. The plant’s extended facility is expected to be in operation by 1st Jan. 2016.
As per Michelin Hungaria Kft, with a planned investment of nearly EUR7 million for brownfield expansion, the company is going to develop the site further by approximately 50%, which would be covering an area of 30,000 square meter.
The new center would act as a key distribution cenetr for Michelin, which would be responsible for handling more than 3,000 tyre stock keeping units (SKUs), ranging from truck & agricultural tyres to earthmover tyres, as reported by the Head of Michelin Vac logistics center, Mr. Robert Szabo at a ceremony held on 9th Dec. 2015.
The Vac logistics center would operate among one of the other four sites in Hungary, including a passenger tyre manufacturing facility located in Nyiregyhaza, where the leading tyre manufacturer is planning to implement EUR40 million project for expanding the facility’s capacity for producing ultra-high-performance (UHP) tyres.
According to “Hungary Tyre Market Forecast & Opportunities, 2020” recently published market research report by TechSci Research, the company’s planned investment in logistic center would significantly help Michelin in increasing its penetration in Hungary and as well as in other European countries.