PTT Synergy to invest RM2.3bil in smart warehouses over next two years
PTT Synergy, whose business activities include construction as well as warehouse solutions and distribution centres, is strengthening its offerings by providing high-tech total intralogistics and industrial solutions.
Group managing director Teo Swee Phin said the company has 15 automated warehouse projects in the pipeline in Malaysia and aims to increase the contribution from the new robotics segment going forward.
"We have a building storage capacity of 600,000 pallets, which translates into six million square feet (sq ft) of warehouse facilities. Our goal is to increase this to two million pallets within the next three to five years,' he told reporters after the grand opening of the company's first smart logistics facility, PTT Logistics Hub 1, here today.
PTT Logistics Hub 1, built on a 2.63-hectare site with a gross development value of RM180 million, features 168,000 sq ft of warehouse space and an additional 90,000 sq ft dedicated to operations. It can accommodate about 31,000 pallet positions.
Currently the facility has an occupancy rate of around 70 per cent and is expected to reach full occupancy within the next two months.
He explained that while PTT Synergy has three core segments, namely construction, real estate, and the upcoming robotics segment. The robotics segment, which comprises the automated warehouses, is expected to take about three years to develop, with the goal of matching the income currently generated by the construction business.
"At present, our real estate segment is catching up rapidly and has already surpassed the construction segment in terms of profitability. While our construction division typically generates about RM24 million annually, the real estate segment is projected to generate RM50 million per year and targeted to reach RM100 million in the near future,' he said.
Teo said that for robotics, the income generated will be comparable to that of the construction segment if it achieved its two million pallet positions over the next three to five years.
"This strategic diversification is aimed at making our business more resilient and sustainable in the long run,' he added.
He emphasised that each of the three segments would contribute equally to the group's income, reducing reliance on a contribution from a single segment such as construction, which is subject to volatility due to fluctuating costs and demand.
Teo said that the robotic leasing model will provide recurring income for the company.
Commenting on its international presence, Teo said that the company is ready to venture regionally, with the first overseas destination being Thailand.
"We are targeting to begin operations in Thailand by the end of this year. While the Thai venture is still in the early stages, pending due diligence and further familiarisation with local regulatory policies, we view this as a significant step in our regional growth strategy,' he said.
He disclosed that PTT Synergy has identified an 8.09-hectare land located in Rayong, Thailand, which is adjacent to a client's site.
On the outlook, Teo said next year is expected to be significantly better for the group, supported by revenue contributions from all three segments. - Bernama
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