Kuehne + Nagel has invested €350m to establish a new Adidas distribution centre in Mantova, Northern Italy in September 2024. This announcement comes exactly one month after the company appointed three new representative agents in Trinidad & Tobago, Barbados, and Guyana. The logistics hub, which has 130,000 sqm of warehousing space, will service 19 countries in Southern and Eastern Europe.
Stefan Paul, CEO of Kuehne+Nagel International AG, said: “The opening of the Adidas logistics hub represents the largest and most innovative implementation in our company to date. It is the blueprint for the next generation of omnichannel distribution centres, combining next-level digitalisation and sustainable solutions. As such, it is a testament to our corporate strategy Roadmap 2026, which focuses on outstanding customer and employee experience. We are proud to take our long-term partnership with adidas to the next level.”
The logistics hub is equipped with 20 km of conveyor belts and a shuttle system handling 25 storage lanes with a capacity of 440,000 units. Thanks to these systems, the logistics hub can process up to 500,000 shipments per day in support of every retail channel – from single e-commerce parcels to bulk orders for large retailers.
Mantova was selected as the location for this project due to its strategic position with excellent road and rail connections. This facilitates integration with last-mile suppliers and reduces operating costs and CO2 emissions.
Earlier this month, the forwarder announced the opening of a new, temperature-controlled fulfilment centre for its partner, Medtronic in Ontario, Canada. At the 25,000 sqm site, located in Milton, Kuehne + Nagel supports Medtronic by distributing its products to hospitals and institutions. Medtronic also operates a service and repair centre within the facility, as well as a test and preventative maintenance centre for its medical equipment.
This partnership combines the technical, operational, and engineering expertise of Kuehne + Nagel and Medtronic, to meet the increasing demand for healthcare logistics and serving the urgent needs of patients and the healthcare community.
“The partnership between Kuehne + Nagel and Medtronic underscores the trust and confidence placed in Kuehne + Nagel’s capabilities and our commitment to delivering high-quality and reliable logistics services for Medtronic’s critical medical device products,” said Eduardo Razuck, Head of Contract Logistics, Americas, Kuehne + Nagel. “In Kuehne + Nagel’s Roadmap 2026, healthcare is identified as a key growth area, where we are committed to further invest in order to make a positive impact on patients’ lives.”
“We are proud to partner with Kuehne + Nagel, who we trust to address the unique challenges we face in healthcare supply chain while maintaining our highest quality standards and regulatory compliance to best meet the needs of our customers and the patients we serve,” said Mbaye Seye, Operations Manager, Medtronic. “Our culture and values align with Kuehne + Nagel as we collectively focus on the critical importance of always putting patients first.”
Kuehne + Nagel makes such calculated wagers in an effort to broaden its vertical mix and geographical scope. This is also part of the forwarder’s Roadmap 2026 and Vision 2030 growth strategy. In November 2023, Kuehne + Nagel launched a new depot in Turin, Italy, in order to expand its European groupage network. The forwarder believes that investing in a more robust pan-European groupage network will result in competitive lead times. At the same time, it enables the company to maintain flexibility within its asset-light design in order to handle variable volumes effectively.
Earlier this year, UPS Healthcare announced a major investment across two facilities in Italy – adding 100,000 sqm of warehouse space in Passo Corese near Rome and Somaglia in Lodi.
According to Ti, Europe’s contract logistics market in 2024 is broadly uninspired, growing by 1% y-o-y in real terms , up slightly from 0.2% in 2023.
Author: Shruti Sasidharan
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