Schneider Electric commits $25m to Tuas facility automation and AI

Of the $25m investment, $19m will fund hiring and reskilling employees.

Schneider Electric has committed $25m to upgrade its 21,000-square-metre facility in Tuas and expand its Singapore workforce.

In a company statement, Hub Asia Distribution Centre (Hub Asia) is set to complete the expansion of its Smart Distribution Centre capabilities by 2027. This will bring automation, robotics and agentic AI to the Tuas facility, raising productivity levels and enhancing autonomous warehouse operations and planning.

The Tuas facility’s transformation is anchored by a goods-to-person automation system that delivers inventory directly to picking stations rather than sending workers to retrieve goods.

The first phase has recently gone live, already lifting by about 10% against baseline.

A second phase will introduce adaptable racking systems that allow for scalability and layout redesign, alongside further gains in operational quality and workplace health and safety.

When fully deployed, the system will handle approximately 40% of outbound goods and is forecast to raise productivity by up to 20% against baseline.

Of the $25m investment, $19m will be used to hire new employees and reskill existing ones to gain skills in advanced systems monitoring, data analysis, and warehouse planning.

The investment, which will run through to 2030, will develop a team of 26 skilled employees to operate and manage the facility’s new automated systems.