Schaeffler improves its logistics by constructing a European distribution center

Schaeffler is investing around € 200 million in a European distribution network with 4 locations / Kitzingen will be the main location / Agreement between IG Metall, Works Council, and employer regarding terms of employment

Herzogenaurach/Frankfurt, (PresseBox) - Schaeffler AG will be investing around € 200 million in the expansion of its European distribution network during the next few years, which will include the construction of a new European distribution center ("EDC Mitte") in Kitzingen. The decision was made by the Executive Board and Supervisory Board of Schaeffler AG in their meetings on December 12, 2014. Construction of the EDC Mitte, to which an investment of around € 150 million has been allocated, is set to begin in the first quarter of 2016. The start of operation is planned for the autumn of 2017, and the EDC Mitte will have up to 250 employees.

In addition to the Kitzingen location, the European distribution network will also include a location for Northern Europe in Sweden and a location for Southern Europe in Italy, while a further location in Western Europe is also planned. The construction of the European distribution center is one of the 20 initiatives that make up the "ONE Schaeffler" program. The aim of this investment project is to modernize the Schaeffler Group's logistics activities - particularly with regard to industrial business - and to optimize existing processes and significantly increase delivery speed.

"The European logistics network that we have planned will allow us to supply our customers even better and more efficiently. Our objective is to improve our competitive position even further", explains Robert Schullan, Member of the Executive Board and President Industrial at Schaeffler AG.

In the run-up, the union, Works Council, and Schaeffler AG had agreed that the new Schaeffler Logistics Center will operate independently based on the collective agreement of the Bavarian metalworking and electronics industry. All future employees of the EDC will remain employees of Schaeffler. Furthermore, a supplementary collective agreement and further key points were agreed upon, which regulate the employment and transition conditions.

Klaus Rosenfeld, CEO of Schaeffler AG, said: "The expansion and modernization of our European distribution network is of strategic importance for the Schaeffler Group. By approving this decision today, we are reaching a further milestone in the implementation of our "ONE Schaeffler" program. The excellent and constructive cooperation with our employee committees is a significant factor for success here."

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Schaeffler AG

Schaeffler with its product brands INA, LuK and FAG is a leading provider of rolling bearing and plain bearing solutions and of linear and direct drive technology, as well as a renowned supplier to the automotive industry of high-precision products and systems for engines, transmissions, and chassis applications. The globally active group of companies generated sales of approximately 11.2 billion euros in 2013. With more than 80,000 employees worldwide, Schaeffler is one of the largest German and European industrial companies in family ownership. The Industrial division supplies components and systems for around 60 industrial sectors via its worldwide organization with market proximity and its application support service. The range comprises more than 225,000 products from miniature bearings only a few millimeters wide, e.g. for dental drills, to large-size bearings with an outside diameter of several meters, e.g. for wind turbines.

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