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Schneider Electric to invest S$25 M in Singapore smart distribution hub

French energy and automation company Schneider Electric plans to invest S$25 million ($19.6 million) to upgrade smart automation and digital capabilities at its Hub Asia Distribution Center in Tuas, Singapore.

The investment will support improvements to the 21,000-square-meter facility and expand Schneider Electric’s local workforce. Of the total commitment, S$19 million will be directed towards workforce development through 2030, including recruitment and reskilling of existing employees.

The Hub Asia facility is already undergoing a major transformation, with the expansion of its Smart Distribution Centre capabilities expected to be completed by 2027, according to the Singapore Economic Development Board (EDB). The project will introduce automation, robotics and agentic AI to the Tuas site, with the aim of improving productivity and enabling more autonomous warehouse operations and planning.

A key part of the upgrade is a goods-to-person automation system that moves inventory directly to picking stations, eliminating the need for workers to retrieve items manually. Its first phase has recently become operational and has already improved productivity by around 10% compared with the baseline.

The second phase will add flexible racking systems designed to support future scaling and warehouse layout changes. It is also expected to improve operational quality as well as workplace health and safety. Once fully implemented, the system is projected to process about 40% of outbound goods and increase productivity by as much as 20% over the baseline.

Established in 2022, Hub Asia operates from a Green Mark Platinum-certified building and has used offsite solar power to maintain carbon-neutral operations since its launch. The facility serves Schneider Electric’s global markets, exporting products to regions including Europe, North America and China.

 

 

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