Kia Motors (UK) Limited is to relocate to a new purpose-built vehicle distribution centre at Killingholme, near Grimsby, on the Humber estuary to cope with its growing business demands.
As one of the fastest growing brands in the UK new car market, Kia has outgrown its current operation in Sheerness and the new facility, adjacent to Humber Sea Terminal, is to be operated by preferred company The GBA Group, and will allow the brand to prepare for expected further development of its UK business.
The all-encompassing distribution facility, expected to be operational in August this year, will also include workshops, preparation areas as well as sufficient capacity to accommodate up to 10,500 vehicles in readiness for the next generation of 8,000 car-carrying vessels being introduced by Kia’s shipping partner Eukor.
The initial 55 acre single site will be provided and operated by GBA, which currently handles more than 1.3 million vehicles per year for various automotive manufacturers and shipping lines and represents an investment of approximately £8m, creating in excess of 300 jobs in the area.
Tom Jacobson, Kia’s General Manager of Systems and Operations said: "This is a significant move for Kia in the UK. Last year we saw our sales rise to more than 30,000 units and this year we expect to deliver 45,000 vehicles to customers. As we grow towards our target of 100,000 units a year by the end of the decade we have to be able to cope with increased movement of vehicles and Killingholme will give us significant benefits, enabling Kia to enhance our vehicle preparation and logistics facilities.
"It has excellent links to mainland Europe and unhindered access to the UK trunk road network allowing us to cut our lead mileage between the port of entry and the dealer showroom by approximately 25 per cent.
"The site also allows us to plan for the future, to improve the processing of our vehicles and tailoring the vehicles for the UK market. It will also provide us with considerable consolidation opportunities and cost savings in the future," he added.
Captain Sam Judah, Managing Director of The GBA Group said: "We are extremely delighted to be chosen as Kia’s preferred partner which confirms our position as one of the leading providers of total logistical solutions in the UK.
"We look forward to working closely with Kia to achieve their long term objectives by providing an uncompromising approach to quality and service."Published 13 April 2005