DHL Supply Chain invest EUR350 million in Southeast Asia to strengthen supply chain resiliency

DHL Supply Chain, the global market for contract logistics solutions, plans to invest EUR350 million in Southeast Asia over the next five years to expand its warehousing capacity, workforce and sustainability initiatives.  

This is part of a series of strategic investments by DHL Supply Chain over the past year, already adding up to EUR1.35 billion globally. These investments into the supply chain infrastructure, people hiring and development, as well as automation, digitisation and sustainability in India, Latin America and Southeast Asia support the omnisourcing strategies of DHL’s customers in all major geographies, across all industries. 

CEO of DHL Supply Chain, Oscar de Bok, 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. 

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.” 

With this investment, DHL Supply Chain will increase its current 1.6 million square meters of warehouse space in Southeast Asia by 25 percent, or 400,000 square meters. 

“We are not just increasing our capacity, but we are building logistics centres 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 a state-of-the-art automated pallet storage and retrieval system and goods-to-person robotics technology to handle small parts picking,” said CEO of DHL Supply Chain Asia Pacific, Javier Bilbao. 

DHL Supply Chain is also committed to having carbon-neutral facilities for all new buildings. Today, 100 percent of DHL Supply Chain’s facilities in Singapore and Malaysia have achieved carbon neutrality, showcasing its leadership in championing sustainability in the supply chain sector.