UK-based Vodafone Group has agreed to create a new logistics hub in Luxembourg to hold mobile and fixed network equipment for its European markets.
An agreement to create the facility was signed by Vodafone Group’s Chief Financial Officer, Luka Mucic and Luxembourg Minister of the Economy, SME, Energy and Tourism, Lex Delles.
The new facility will ensure that equipment like antennas, and routers can be moved more efficiently to where they are needed.
Vodafone estimates that 88% of its in-market warehouses in Europe can be reached from Luxembourg within 24 hours.
It has engaged MG Real Estate to develop a new 26,000 square metre (SQM) warehouse in Luxembourg’s Bettembourg Logistic Park.
The new facility will be managed by the Vodafone Procurement Company, which is able to centrally monitor the Group’s entire end-to-end supply chain in real time across its markets using digital technology.
Luka Mucic commented: “The creation of a new pan-European logistics hub in Luxembourg is in line with our strategy to simplify the way we run Vodafone and our commitment to being as cost-efficient as possible in our operations and supply chain.
"This investment will also reinforce Luxembourg’s position as a world-class logistics centre.”
The building works are anticipated to start in early 2025 and the pan-European logistics hub is expected to enter operation in 2026.