South Korean automotive parts manufacturer, Hyundai Mobis, announced this week that it had established a new distribution centre in Belgium.

The company makes body and chassis systems and modules, including passive/active safety systems, braking, suspension and steering systems, lighting, cockpit/interior modules, hybrid drive systems and multimedia.

The company said the new 56,000 square metre logistics centre should help reduce delivery lead times to its European customers. It will serve as a logistics hub for key markets including UK, Germany, Spain, Italy, Sweden and Hungary, according to South Korean reports.

Until now, Hyundai Mobis operated seven separate logistics centres across Europe with parts flown in from Korea three times weekly. The company hopes to reduce delivery lead times by two days in some cases.

Hyundai Mobis is an affiliate of Hyundai Motor and still depends heavily on Hyundai-Kia for the bulk of its business. Sales to non-affiliated automakers account for just 20% at present, including sales to General Motors and FiatChrysler. It aims to increase this to 30% by 2025.

Hyundai Mobis' aftermarket business is also expanding rapidly in Europe. The company estimates that around 8.6m Hyundai and Kia vehicles were in circulation in Europe at the end of last year, compared with 4m 10 years ago. Hyundai has a vehicle assembly plant in the Czech Republic, while Kia has a plant in neighbouring Slovakia.