Opportunity
Prologis values long-term and trusting partnerships. The technology group Continental Aftermarket has used a Prologis logistics facility in Groß-Rohrheim in southern Hesse, Germany, since 2008. Kühne + Nagel have been in charge of Continental’s logistics at this location from the outset. In 2011, we expanded the facility, adding 8,400 square meters. Since the first logistics facility was commissioned in Groß-Rohrheim, Continental has increased revenue generated there by approximately two thirds, and the company’s portfolio is growing constantly, which is why it required additional storage space urgently for its independent aftermarket division. For Prologis, this presented another opportunity to expand a logistics space for Continental and continue a successful partnership.
Challenge
An important part of the process was to remind Continental of the benefits of the Groß-Rohrheim location, but the lack of space in the southern Hesse region makes it a challenge to find the right plots for logistics facilities.
Solution
Thanks to strategic land banking—proactively securing plots in important logistics locations—Prologis was able to offer Continental suitable space for expansion. The Groß-Rohrheim location offers ideal conditions for further growth, and the excellent transport connections offer many logistical advantages. The ideal location in the Rhine-Main and Rhine-Neckar regions, as well as our long and trusted relationship, contributed to Continental’s decision to choose the location and Prologis. We expanded the logistics space to approximately 34,000 square meters, almost 7,000 square meters of additional space. The opening ceremony for the logistics facility took place at the end of March 2019. Kühne + Nagel also handle logistics in the new space, and Prologis is in charge of the property management.
Continental supplies wholesalers around the globe with automotive accessories from Groß-Rohrheim. They in turn supply the goods to their end clients, such as garages. The new logistics space allows Continental to be more flexible and reduce cycle times. The facility will act as a commissioning and storage space. It has narrow-aisle technology and separate small parts storage.
Conclusion
Because of successful, long-term collaboration, many customers return to Prologis for follow-up orders and expansions. Investing in partnerships pays off and offers the potential to expand business relationships.