Sime Darby Property and MYDIN begin work on RM450 mil automated distribution hub in City of Elmina

• The development will occupy 19 acres of freehold land with a built-up area of 786,000 sq ft

KUALA LUMPUR (Dec 8): Sime Darby Property Bhd and Mydin Mohamed Holdings Bhd have commenced construction of an automated distribution centre in the City of Elmina. 

The groundbreaking was officiated by Selangor Menteri Besar Datuk Seri Amirudin Shari.

The development, valued at RM450 million, will occupy 19 acres of freehold land with a built-up area of 786,000 sq ft.

Sime Darby Property Group managing director and chief executive officer Datuk Seri Azmir Merican told the media following the event that it will be developed under Sime Darby Property’s Built-to-Suit-to-Lease model, which involves long-term leasing arrangements designed to meet specific operational requirements.  

The township’s existing industrial infrastructure is expected to complement the project’s operational requirements.

The distribution centre is scheduled for completion in the third quarter of 2027. Upon completion, the facility is intended to support MYDIN’s warehousing and distribution needs as it upgrades its logistics operations.

Azmir added that the project reflects Sime Darby Property’s approach to expanding its industrial and logistics segment, noting the shift toward automated and data-driven infrastructure in Malaysia’s supply chain sector.

The distribution centre will feature an Automated Storage and Retrieval System (ASRS). According to the project’s specifications, the system is expected to increase throughput capacity by 240%, raise pallet storage by 36%, and reduce reliance on manual labour by more than half. 

These features are intended to strengthen MYDIN’s fulfillment and inventory processes across its retail network.

MYDIN managing director Datuk Wira (Dr) Ameer Ali Mydin said the investment is aimed at supporting the company’s transition to more automated logistics operations and enabling workforce upskilling aligned with the technology requirements of the new facility.

The City of Elmina was selected due to its access to several major highways, including the North-South Expressway, Guthrie Corridor Expressway, LATAR, DASH, and NKVE.  

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