Singapore – DHL Supply Chain has announced an investment of €350m (US$369.8m) in Southeast Asia to expand its warehousing capacity, workforce and sustainability initiatives. The regional investment is part of the company’s €1.35b strategic investment globally.
Some of the notable developments which will benefit from the investment include 40,000 square meters DHL Maheswara Green Logistics facility in West Java, Indonesia, 18,000 square meters Penang Logistics Hub 5 (PLH5) in Malaysia, 50,000 square meters built-to-suit facility in the Philippines, and 60,000 square meters of space acquired from a local business in Singapore.
DHL Supply Chain will also continue to develop its Warehouse Management Systems (WMS) while introducing other warehouse technology in selected markets such as auto-stores, automated storage and retrieval systems (ASRS) for pallets and large goods, and automated guided vehicles (AGVs). These digitalisation initiatives also allow employees to upskill themselves in such implementations.
Moreover, it has reinforced its commitment to people development as it seeks to create over 3,000 job opportunities across Southeast Asia by 2024. In addition, the company plans to double its EV fleet in Southeast Asia over the next five years.
Oscar de Bok, CEO at DHL Supply Chain, said, “There is an incredible opportunity for businesses in Southeast Asia to strengthen supply chain resiliency. Companies are looking at diversifying their supply chains. Southeast Asia, with its efficient work environment and effective trade agreements such as the China-ASEAN FTA, stands to benefit the most. Our multi-market investment of EUR350 million in this region complements our global investment strategy.”
He added, “These are strategic investments we take – despite the generally softer market environment – because we invest in the future growth of our business and strongly believe in the strategic expansion and diversification of our regional businesses. This puts us in a prime position to support our customers’ growth and omnisourcing strategy in the long term.”
Meanwhile, Javier Bilbao, CEO at DHL Supply Chain Asia-Pacific, commented, “We are not just increasing our capacity, but we are building logistics centers that can cater to future demand for our customers through robotics and sustainability initiatives. For example, we are equipping our upcoming fifth facility in Penang – PLH5 with state-of-the-art automated pallet storage and retrieval system and goods-to-person robotics technology to handle small parts picking.”
