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Imperial secures internal factory contract with Audi in Hungary

Imperial Logistics International has secured a contract with Audi to operate internal factory logistics for vehicle assembly at the carmaker's plant in Győr, Hungary, replacing an unnamed rival.

Audi_TT_Györ_optImperial Logistics International has secured a contract with Audi to operate internal factory logistics for vehicle assembly at the carmaker’s plant in Győr, Hungary, replacing an unnamed rival.

The logistics company already held the contract to manage a logistics optimisation centre at the Győr car factory for three years through its Panopa division, which has now also been extended.

The new contract is part of a recent growth in business with the wider Volkswagen Group and in central and eastern Europe. Imperial had its logistics support contract extended for the Volkswagen engine factory in Polkowice in Poland, as well as its logistics partner contract with the Volkswagen commercial vehicle factory in Poznań.

Rémy Hoeffler, director of Imperial’s automotive business in Eastern Europe said: “As a result of the new contract in Győr and the extension of the agreements in Győr, Polkowice and Poznań, our activities in eastern Europe are a major pillar in Imperial’s growth strategy.”

Imperial started a new freight forwarding department in Győr last year in response to the growth in the local market, as well as in the neighbouring Slovakia, Slovenia and Croatia. The provider also provides logistics services to the Mercedes-Benz plant in Kecskemét, Hungary.

Both Audi and Daimler are currently introducing new models into the production line at their respective Hungarian factories.

In its recent interim results announcement, the Johannesburg, South Africa-based Imperial Group said its logistics division was focused on expanding and leveraging its footprint in selected African and European countries.

“Integrated logistics capabilities are also being strengthened to enable deeper penetration of clients’ supply chains,” said the company at the time.

The Logistics International division reported revenues of €795m ($840m) for the six months to end-December 2016, 32% higher than the comparable period in 2015. Operating profit grew 14% to €29.3m.

“Logistics is Imperial’s major growth vector. Strict capital allocation disciplines will be applied in pursuit of focused organic and acquisitive growth,” said the company in its results presentation.