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Yang Kee Logistics Invests S$45m in Chemical Logistics Hub

Press Release   •   Feb 08, 2010 09:17 +08

Home-grown firm Yang Kee Logistics has announced a multi-million dollar plan to build a new hub at Jurong Pier Road. The company is investing S$45 million into the first phase of a one-stop chemical logistics hub. The investment is expected to quadruple the company's turnover contribution to 20 per cent by 2012.

Come 2011, the first such one-stop hub in Singapore will feature new technologies to improve productivity, reduce carbon footprint and increase the company's foothold in the sector. The company expects cost-savings to be significant.

Ken Koh, deputy managing director, Yang Kee Logistics, said: "We estimate to reduce our cost by S$2.7 million a year. This reduction comes from owning our facility, from reduction in costs of ownership, and also by synergising our operations"

Yang Kee currently employs about 180 workers, but expects the number to rise to 280 by 2012. The company is aiming to be the first logistics warehouse in Singapore to secure the Green Mark Plantinum Award by the Building and Construction Authority. Some green measures that will be adopted include investing in solar panels, wind turbines, solar tubes to minimise the use of artificial light and recyling facilities. Yang Kee is also in talks with a carbon credit company to buy credits to offset any remaining carbon emissions.

Yang Kee is one of the SMEs which benefited from SPRING Singapore's Business Upgrading Initiatives for Long-term Development (BUILD) package. BUILD was first launched in February last year. The package aims to help SMEs build new capabilities and strengthen existing operations.

Png Cheong Boon, chief executive, Spring Singapore, said: "In 2009, SPRING supported around 2,600 projects involving more than 3,000 companies. Together, they will generate new value added of S$4.5 billion and created 13,000 new jobs."

The logistics industry employs over 180,000 workers and contributed to 9.4 per cent of Singapore's GDP in 2007. Mr Png added that SPRING Singapore's efforts to help small- and medium-sized enterprises to overcome the financial crisis have borne fruit. SPRING said through the Special Risk-sharing Initiative and enhanced SME loan schemes, some 14,000 loans amounting to S$6 billion were made. 93 per cent of the loans were extended to SMEs.

Under SPRING's BUILD programme, it also supported some 2,600 projects involving more than 3,000 firms. SPRING said the projects span across various capability areas such as design, branding, technology innovation and service excellence.

Together, they will generate new value add of S$4.5 billion and create 13,000 new jobs.

- CNA/vm

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