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Sembcorp Industries (Sembcorp) has announced a strategic plan aimed at establishing itself as a leading developer of low-carbon industrial parks in Asia. The Urban business segment, known for its stability and growth potential, has successfully developed 21 industrial parks covering over 14,000 hectares in key markets such as Vietnam, Indonesia, and China.
With Vietnam and Indonesia offering significant growth opportunities due to strong GDP growth, a burgeoning manufacturing sector, and rising domestic consumption driven by urbanization and a growing middle class, Sembcorp is poised to capitalize on these trends. The expansion of industrial parks in these countries is bolstered by substantial foreign direct investment, supply chain diversification, and favorable government policies.
To seize these opportunities, Sembcorp’s Urban business has set ambitious targets:
Land Development: Expand its land bank from 14,000 hectares to 18,000 hectares by 2028.
Industrial Properties: Increase its industrial property portfolio to 1.5 million square meters by 2028, up from 100,000 square meters, to meet rising demand from manufacturing, domestic consumption, and e-commerce.
Financial Growth: Achieve a net profit compound annual growth rate (CAGR) of over 15% from 2022 to 2028 and an expected return on equity (ROE) of 10% by 2028.Leveraging Competitive Strengths
Since 1994, Sembcorp’s Urban business has attracted over 1,000 customers and secured more than US$50 billion in investments, generating over 370,000 jobs. This track record positions the company strongly for securing new projects both in existing and new markets. Sembcorp will continue to expand its footprint in Vietnam and Indonesia, explore new markets, and optimize operations in China to enhance returns.
Strategic Investments and Partnerships
To support these goals, Sembcorp plans to invest approximately S$700 million in its Integrated Urban Solutions segment between 2024 and 2028. This investment will be financed through a combination of operating cash flow, project financing, internal funding, and capital recycling. The company is also exploring partnerships to develop and expand its asset management platform, providing options for further growth.
Commitment to Low-Carbon Solutions
As global companies increasingly prioritize sustainability, Sembcorp’s Urban business is well-positioned to meet the growing demand for low-carbon and sustainable facilities. Leveraging Sembcorp’s expertise in renewable energy and decarbonization, the Urban business aims to offer green and smart infrastructure, setting itself apart as a preferred choice for companies seeking sustainable solutions. In Indonesia, recent memorandums of understanding (MOUs) have been signed to develop low-carbon industrial parks in Batam, targeting advanced manufacturing and data centers.
With clear targets for 2028, Sembcorp’s Urban business is set to leverage its extensive experience and expertise to lead the development of low-carbon industrial parks across Asia. |
