German industrial group Thyssenkrupp Materials Services is investing around 70 million euros ($78.29 million) in the modernisation and expansion of its European warehousing and logistics network.

A state-of-the-art logistics centre and new warehouses are to be built in Germany, Poland and Hungary, said a statement from the company.

The distribution and service provider of Thyssenkrupp Group said that the investments are an important part of Thyssenkrupp Materials Services’ strategy. Under its “Materials as a Service” approach, the western world’s biggest materials distributor is focusing on expanding its portfolio of services supplementing its core business.

“Expanding and modernising our capacities are important elements of our growth,” said Klaus Keysberg, chief executive officer of Thyssenkrupp Materials Services.

“Innovative logistics, automation and digitalisation will help us improve our performance and our productivity. That means we can cater even better to the individual requirements of our customers while they can concentrate on their core business,” he added.

Connected processing equipment and the digital integration of the company’s sites will ensure flexible and perfectly coordinated logistics processes and services.

EUROPEAN EXPANSION

A state-of-the-art logistics centre with around 36,000 sq m of storage space is to be built in Rotenburg/Wümme (Lower Saxony). The company is investing around 60 million euros in the site, which will store up to 20,000 tonnes of materials to guarantee maximum material availability.

The groundbreaking is planned for the end of the year. Serving customers in the north of Germany, the new logistics and processing centre is scheduled to go into operation in 2021.

Thyssenkrupp Materials Services is investing a total of 11 million euros in the expansion of its sites in Nowe Marzy, Poland and the Hungarian capital Budapest.

Two new modern warehouses are to start operation at the end of September. With around 13,500 sq m of storage space, the new warehouse in Nowe Marzy is an addition to the hub in north Poland, which was built in 2017. The new facility in Budapest will cover a space of around 6,500 sq m.

With around 480 locations – 271 of them warehousing locations – in over 40 countries, thyssenkrupp Materials Services is the biggest materials distributor and service provider in the western world.

The wide-ranging capabilities offered by the materials experts enable customers to concentrate more on their individual core business and span two strategic areas: global materials distribution as a one-stop shop – from steel, tubes and pipes, nonferrous metals and specialty materials to plastics and raw materials – and tailored services in the areas of materials management and supply chain management.

An extensive omnichannel architecture offers 250,000 customers worldwide round-the-clock access to more than 150,000 products and services. A high-performance logistics system ensures that all deliveries are integrated smoothly into customer production processes on a just-in-time or just-in-sequence basis, the company statement said.