Hyundai Mobis to build $69 mn integrated logistics center in Korea

South Korea’s largest auto parts maker Hyundai Mobis Co. said on Thursday it will spend 94.8 billion won ($69 million) to build an integrated logistics center in the country.

The auto-parts-making unit of Hyundai Motor Group said it is building the logistics center in the city of Gyeongju, North Gyeongsang Province to efficiently manage large parts such as the battery management systems (BMS) and ensure stable after-sales services throughout the country.

Hyundai Mobis Chief Executive Cho Sung-hwan signed a memorandum of understanding on the logistics center with Gyeongju Mayor Joo Nak-young and North Gyeongsang Province Governor Lee Cheol-woo earlier on Thursday.

The construction of the new storage and distribution center will begin early next year with a plan to start operations at the end of 2024, the company said.

Once completed, it will take over work done by the current three smaller logistic centers in the region and send auto parts throughout the country.

Hyundai Mobis, which primarily supplies products to its affiliates, Hyundai Motor Co. and Kia Corp., said separate space inside the logistics center would be reserved for eco-friendly vehicle parts to meet the growing demand for electric cars and hybrids.

The company said a solar power system will be installed at the logistics center and robots will be deployed to move heavy auto parts.

Write to Hyung-Kyu Kim at khk@hankyung.com
In-Soo Nam edited this article.