BMW Group celebrates 20 years of Regional Parts Distribution Centre with expansion in Malaysia

KUALA LUMPUR: BMW Group Malaysia recently celebrated 20 years of its Regional Parts Distribution Centre in the country. The occasion was accompanied by the completion of a major expansion at the cutting-edge facility located in the Free Industrial Zone at Senai International Airport, Johor Bahru.

Originally established at the Port of Tanjung Pelepas (PTP) in 2004, the centre relocated to its current location in 2016. Since then, it has grown to become one of the largest facilities of its kind for BMW in the Asia Pacific region.

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Initially spanning 45,000 square metres, the recent expansion increases the facility's footprint to an impressive 65,000 square metres, reinforcing BMW's pledge to regional importance and local investment.

At the event, Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid, CEO of the Malaysian Investment Development Authority (MIDA), highlighted the broader implications of BMW's journey in Malaysia. He said:

“The BMW Group's growth journey in Malaysia over the past 20 years is not just a story of business growth; it is a testament to shared vision, technological advancement, and exceptional performance. This expansion is a powerful affirmation of Malaysia’s position as a strategic gateway to the region, where innovation and opportunity converge."

He further emphasized how the centre strengthens Malaysia’s role in BMW’s supply chain while symbolizing the brand’s confidence in the country’s ecosystem.

MIDA, he assured, remains dedicated to fostering such investments and showcasing Malaysia's potential.

Benjamin Nagel, Managing Director of BMW Group Malaysia, also reflected on the milestone "As we celebrate 20 years of our Regional Parts Distribution Centre in Malaysia, we reflect on the significance of this facility, not only in terms of the success of the BMW Group as the leading premium automaker in Malaysia, but also in reinforcing the status of Malaysia as a strategic logistics hub for the group in the Asia Pacific region."

The expansion introduces several upgrades, including a dedicated High Voltage (HV) Battery Storage Area and an advanced Very Narrow Aisle (VNA) racking system.

The two-story design allows for further growth, while a solar panel roof aligns with BMW's sustainability goals. The centre is also equipped to manage the evolving demands of electric mobility, with 30 High Voltage Battery part numbers included in its inventory of nearly 52,000 items.

It handles over 100,000 inventory lines monthly, with a remarkable on-time picking and packing accuracy rate exceeding 99%. This facility not only serves Malaysia but also supports over 20 markets in the region.

Since moving to the Senai International Airport Free Industrial Zone, the centre has consistently demonstrated growth, with its annual turnover increasing from RM705 million in 2017 and RM1.385 billion in 2023—almost double in six years.

Weekly operations include the dispatch of 15 containers by sea, 33,000 cubic metres of airfreight deliveries, and 42 trucks serving Malaysia, Singapore, and Thailand.

The expanded facility is aimed to strengthen BMW’s logistical capabilities, ensuring the brand can meet the demands of the rapidly evolving automotive landscape in the Asia Pacific region as well as Malaysia.

The BMW Group Regional Parts Distribution Centre's expansion is their way of showing BMW’s long-standing investment in Malaysia.

As the automotive industry transforms with electrification and sustainability at its core, the expanded facility positions BMW to remain at the forefront of innovation while continuing to reinforce Malaysia's strategic importance in the region.

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