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Schneider Electric invests $110 million in carbon-neutral Hub Asia distribution centre near Tuas Megaport; leads the way in smart logistics

The development of Schneider’s newest Hub Asia Distribution reinforces the company’s commitment to Singapore as a regional and global logistics hub and its support for an innovative, efficient, and dynamic supply chain ecosystem.

Singapore, 14 November 2022 — Schneider Electric, a global leader in digital energy management and automation launched the $110 million logistics distribution centre known as Hub Asia today. Dr. Beh Swan Gin, Chairman of Singapore’s Economic Development Board (EDB), and Jean-Pascal Tricoire, Chairman and CEO of Schneider Electric were present to inaugurate the new smart and sustainable logistics facility which will serve as an anchor point in the development of the Tuas South industrial area. This celebration marks an important milestone for Schneider Electric in the lead-up to its 50-year anniversary in Singapore in 2023.

Spanning 21,000 square meters in area within a multi-storey modern ramp up facility, the new warehouse will see a 30% increase in operational capacity compared to its previous site in Penjuru. Hub Asia, located at the door step of the new Tuas Mega Port, will support operations for annual revenue totaling €2 billion for Schneider Electric and will increase physical operational efficiency, supply chain resiliency and help contribute to maintaining Singapore’s status as the driving force behind the region’s logistics ecosystem. Together with its headquarters in Kallang, Schneider Electric will expand logistical capacities and technologies via an investment of $110 million over the next 10 years to operate “Hub Asia” in Singapore.

“The supply chain and logistics industry has undergone major transformation over the last few years. We are seeing local and global players disrupt traditional practices through smart warehousing, smart trading, smart transportation, and it is crucial for Schneider to stay ahead of the game to serve customers in the region. Hub Asia and its forecasted expansion over the next decade is essential for the continued acceleration of our global operations strategy, especially in East Asia, where the distribution centre will be key to facilitating regional and global distribution of goods,” said Mr. Jean-Pascal Tricoire, President, Chairman and CEO of Schneider Electric.

“Schneider Electric’s new Hub Asia will enhance Singapore’s position as a leading logistics hub in Asia, and as a critical node in global supply chains. We are also delighted with how the facility has incorporated digital and sustainability technologies and processes, to ensure its competitiveness for the long term.” said Dr. Beh Swan Gin, Chairman, EDB.

Schneider Electric’s Hub Asia distribution centre is situated in a certified Green Mark Platinum building, powered by offsite solar energy ensuring sustainable carbon-neutral operations from its first day of operations, contributing to a greener logistics sector and supporting Singapore’s sustainability goals. It is a SMART warehouse supported by Schneider Electric Ecostruxure solutions and connected products for energy management efficiency. The facility has committed to using sustainable packaging and will progressively achieve its target of using 100% recycled and recyclable cardboard and eliminating single-use plastic from all packaging. The company’s local vehicle fleet will also transition to 100% electric by 2023. Through these and other initiatives, Schneider Electric and its Hub Asia facility will play an important role in Singapore’s next generation logistics ecosystem and building the capability of its future supply chain workforce.

Singapore is home to one of the strongest, and most vibrant logistics and supply chain ecosystems in the region, with a diverse pool of talent constantly striving for new ideas and solutions to solve future challenges.

In opening Hub Asia, Schneider Electric aims to earn another distinction of 4th Industrial Revolution (4IR) Advanced Lighthouse by the World Economic Forum (WEF). Lighthouses are the factories that have taken 4IR technology from pilots to integration at scale with demonstrated benefits. Schneider Electric is one of the few companies in the world that has earned multiple distinctions with its factory in Batam, Indonesia selected in 2019, the Le Vaudreuil, France site selected in 2018 and the Lexington, Kentucky smart factory honored in 2020. Hub Asia will as a model for the company’s global logistics operations while improving operations and increasing customer and employee satisfaction. With high ambition on innovation in logistics, the initial investment in Hub Asia will serve as a baseline as Schneider Electric works to further upskill employees and develop its operations through innovations in technology, safety and digitization. The opening of Schneider Electric’s Hub Asia Distribution Centre emphasizes its strong and long-lasting relationship to Singapore as home to one of the strongest supply chain ecosystems in the region. 

SOURCE: Schneider Electric


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