Sembcorp Targets Low-Carbon Leadership with Bold Industrial Park Expansion Across Asia Eyeing Vietnam & Indonesia First

• Sommana Yan
• 22 August 2024
• International News
• 2468 Views

Sembcorp Industries (Sembcorp) is set to lead the development of low-carbon industrial parks in Asia, with a strategic plan to expand its land bank to 18,000 hectares by 2028 and boost its industrial property portfolio from 100,000 square metres to 1.5 million square metres. With Vietnam and Indonesia presenting robust growth opportunities due to strong GDP performance, increased manufacturing activities, and a rising middle class, Sembcorp’s Urban business is poised to capitalize on these favourable market conditions.

The company aims for a compound annual growth rate (CAGR) of over 15% in net profit and an expected return on equity (ROE) of 10% by 2028. This ambitious plan was revealed by Sembcorp​ and updated by  Solarquarter ​on 06 August 2024.

With a proven track record since 1994, Sembcorp’s Urban business has successfully attracted over 1,000 customers, secured more than USD 50 billion in investments, and generated over 370,000 jobs. This solid foundation strengthens the company’s position to secure new projects in both existing and new markets, particularly in Vietnam, Indonesia, and China. As part of its growth strategy, Sembcorp plans to invest approximately SD 700 million in its Integrated Urban Solutions segment over the next four years. This investment will be funded through a combination of operating cash flow, project financing, internal funding, and capital recycling.

To align with the growing demand for sustainable solutions, Sembcorp’s Urban business is leveraging its expertise in renewable energy and decarbonization to offer green and smart infrastructure. The company is set to develop low-carbon industrial parks in Batam, Indonesia, with a focus on advanced manufacturing and data centres. Recent memorandums of understanding (MOUs) signed in Indonesia further reinforce Sembcorp’s commitment to sustainability, making it the preferred choice for global companies seeking eco-friendly facilities.

As Sembcorp accelerates its expansion across Asia, its clear targets for 2028 reflect its commitment to leading the low-carbon industrial park sector, driven by innovation, sustainability, and strategic partnerships.

• Energy and Environment