Strategic algorithms and a CEO's local ties influenced Vodafone's choice to build its European logistics hub in Luxembourg, as construction commenced Wednesday in Bettembourg.

Vodafone celebrated the symbolic start of construction for its new European logistics centre in MG Park Bettembourg on Wednesday with the raising of the first structural column.

The 36,000-square-metre facility will serve as Vodafone Group's central European logistics base, with 26,000 square metres reserved for the company's initial operations. The remaining space allows for future expansion or third-party use.

Approximately 25 employees will work at the automated warehouse, supported by advanced inventory management systems. Vodafone CEO Ninian Wilson confirmed the total investment at €88 million, with completion slated for 2026.

Location selection process

Luxembourg's selection followed a detailed "Gravity Model" analysis identifying the Luxembourg-Trier-eastern Belgium region as the optimal logistics location for Vodafone. Wilson jokingly acknowledged his personal residence in Luxembourg as an additional factor.

The photos published on this site are subject to copyright and may not be copied, modified, or sold without the prior permission of the owner of the site in question.

Minister of the Economy Lex Delles clarified that while no direct financial support was provided, the state-owned land was leased via a 30-year convention requiring alignment with Luxembourg's economic development goals. "Vodafone's partnership with startups will drive technological innovation," Delles emphasised.

Bettembourg officials welcome Vodafone

Jean-Marie Jans, a member of Bettembourg's municipal executive board ("Schäfferot"), endorsed Vodafone's logistics centre as an optimal fit for the area's existing infrastructure. While acknowledging potential traffic increases along Rue de Dudelange, he noted planned road improvements would help mitigate congestion. A key partnership with the Luxembourg National Railway Company (CFL) has already been formalised to streamline logistics operations.

Jans explicitly distinguished the Vodafone development from the abandoned FAGE yogurt factory proposal previously slated for the site. The dairy project would have required nearly double the land area and ultimately collapsed due to environmental concerns and excessive resource demands.

Vodafone has had a 25-year presence in Luxembourg, where its purchasing headquarters currently employs 400 staff in the capital. "This new facility guarantees the group's long-term commitment to our country," Minister Delles stated.