CHARLOTTE, N.C. (Jan. 14, 2004) — In a bid to focus on tire development and manufacturing, Continental Tire North America (CTNA) Inc. announced it will outsource management of its tire distribution logistics in North America to United Kingdom-based Exel P.L.C..
Conti said details of the arrangement will be finalized by April 1. As part of the strategic partnership, Exel will assume control of, among other things, the management of Conti's seven tire distribution warehouses in the U.S. and Mexico.
“The partnership allows us to focus on our core competencies, tire development and manufacturing, while at the same time providing faster and more efficient service to our customers,” said Martien de Louw, president and CEO of CTNA. “This initiative is another significant step in strengthening our market position in North America.”
The companies did not disclose the value of the contract, and Conti did not indicate what cost savings it anticipates from the deal.
Exel, a supply chain management company, manages more than 1,300 operating locations in more than 120 countries, according to the company's Web site. The company reports annual sales of more than $6.5 billion. Exel focuses on companies in the automotive, chemical/industrial, consumer, healthcare, retail and technology industries.