FSK L&S, SK Square’s logistics subsidiary, said Monday it has secured a deal to operate fulfillment centers for three battery plants of BlueOvalSK, a joint venture between SK On and Ford Motor Company, in the US.
“When FSK L&S receives battery orders from Ford, the service involves packaging and delivering pre-stocked battery inventory,” said an SK Square official. “This is the first time a company has provided fulfillment services for electric vehicle batteries, a service traditionally associated with the retail industry.”
The company will initially implement this service at the fulfillment center of BlueOval SK's first Kentucky plant, with plans to extend it to two additional plants in Kentucky and Tennessee currently under construction. These three production bases, located in the Southeast region of the US — known as the “battery belt" — boast an annual capacity of 127 gigawatt-hours, enough to power 1.2 million Ford electric pickup trucks.
The contract spans six years, from this year to 2030, with an option to extend until 2034. During this period, FSK L&S expects significant revenue from BlueOval SK and its vendors, totaling tens of billions of won.
FSK L&S’ digital logistics platform, KEROL, will automate and streamline processes such as monitoring inventory in real-time, strategically placing parts in fulfillment centers and deciding the optimal shipping sequence, thereby minimizing excess inventory and labor costs.
In light of the growing importance of setting up local production bases due to US tariff measures, the company said that operating BlueOval SK’s US fulfillment centers is a timely business expansion.
“Our goal is to move beyond traditional logistics services by leveraging data and IT platforms to manage the entire logistics process in real-time,” stated FSK L&S CEO Kim Yong-jik. “This approach will allow us to optimize customer-centric supply chain management and reduce logistics costs, thereby actively advancing the digital transformation of logistics services.”
hyejin2@heraldcorp.com
