BMW opens largest distribution center in Korea

BMW Group Korea, the local unit of the German luxury carmaker, has unveiled the second-largest regional distribution center worldwide here, the company said Tuesday.

A total of 130 billion won ($115.6 million) was invested in the new regional distribution center, or RDC, which covers 57,103 square meters of land, the company said.

The new center located in Anseong City of Gyeonggi Province, some 70 kilometers south of Seoul, is the second largest worldwide, after the one in Germany.

“BMW has established 40 large scale distribution centers across the world where over 400,000 parts are available for supply to ensure effective response to customer needs,” said Wolfgang Baumann, vice president of Parts Logistics Management at BMW Group at the opening ceremony.

“With the opening of the new RDC, we have secured an expanded logistics system to supply two million parts a year to dealers and customers.”

The new RDC is within an hour’s drive from Incheon Airport and Pyeongtaek Port, the nation’s fourth-largest harbor.

BMW Korea expects faster and safer distribution of auto parts when the Eurasian railway begins its service in 2019, adding on to existing air and maritime transportation systems.

The company will also try to position the Anseong RDC as a hub of auto parts in the Asia-Pacific region by strengthening cooperation with other BMW branches in nearby countries.

Some 86,000 automotive parts worth about 96 billion won are stored in the new BMW Korea RDC, over two times the volume compared to the previous facility, the company said.

The price of automotive parts delivered from the new facility will remain unchanged, a company official said.

The new RDC in Anseong is anticipated to create 600 jobs and an additional expansion of 31,000 square meters will take place once the construction of the warehouse is complete, according to BMW Korea. 

By Kim Bo-gyung (lisakim425@heraldcorp.com)