German logistics firm DB Schenker on Monday announced plans to invest more than €100 million for a new zero-emissions logistics facility in Tampines, which is scheduled to be completed by the first half of 2025.

Dubbed RedLion2, the 600,000-sqft facility will be the company’s largest investment in Singapore, surpassing the previous investment record for Red Lion, a S$163 million (€101 million ) warehouse opened in 2020 at the free trade zone of the Airport Logistics Park of Singapore.

DB Schenker said the future facility aims to support the semiconductor and healthcare industries and will be designed to house advanced automation solutions, including intelligent conveyor systems, automated storage and retrieval systems, and autonomous guided vehicles.

RedLion2 will also be equipped with several sustainable features, including over 4,000 solar panels, to ensure that the facility is carbon-negative. With the addition of RedLion2, DB Schenker’s facilities in Singapore will occupy over four million square feet of land across 17 facilities.

The company said it plans to partner with local small and medium-sized enterprises to test new ideas within the logistics industry through an innovation sandbox. It currently has around 1,900 employees based in the city-state, with plans to add 600 staff in the next 7 years.

Catherine Soo, cluster chief executive for Singapore and Malaysia, told local news why SIngapore was chosen for this expansion project: “We see a lot of companies relocating or expanding to Singapore, and we can complement them by providing a logistics surface for everyone to grow together. This drives us to put Singapore at a higher level of importance than other countries.”

“Other countries in Asia-Pacific where we have operations are fighting for the same investment from us, but DB Schenker Singapore has been able to deliver a very strong track record,” she noted.