Sheng Siong builds $520m high-tech hub to power over 120 stores

The new facility is expected to be completed in 2029.

Sheng Siong Group Ltd. broke ground on its new Integrated Headquarters and Distribution Centre (IHDC) in Sungei Kadut, with the project costing about $520m.

The seven-storey facility, the supermarket operator’s largest investment to date, will serve as a central logistics hub to support its network of more than 120 stores.

It is expected to be completed in 2029.

Spanning more than 61,000 square metres, the IHDC will be built on a site about 2.5 times larger than Sheng Siong’s existing distribution centre.

Supported by Enterprise Singapore and JTC, the facility will include automated storage and retrieval systems, robotics, warehouse management technology, and storage areas with different temperature controls.

The company said automation will reduce reliance on manual warehouse processes whilst creating new roles in areas such as systems operation, maintenance, automation, and e-commerce fulfilment.

Employees currently involved in warehouse support and manual handling will be trained for higher-skilled roles as the new systems are introduced, the company said.

The new centre is designed to improve the handling of a wide range of products, including fresh, chilled, and frozen items, as well as dry goods and household products.

Sheng Siong said the upgraded infrastructure will allow goods to move through the distribution network faster and help the company adjust more quickly to changes in demand.

The facility will increase Sheng Siong’s storage capacity to more than 70,000 pallet positions, allowing the company to hold more inventory and manage procurement at a larger scale.

Sheng Siong said the IHDC will also be used as a site for suppliers, industry partners, and other organisations to learn about warehouse automation and logistics practices.

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