by AZALEA AZUAR / pic by AFP

VOLKSWAGEN Group has opened up a new regional parts distribution centre in the Port of Tanjung Pelepas, Johor, to provide a robust genuine parts supply chain to 21 markets in the Asia-Pacific region (APAC).

The new 50,000 sq m facility is located in the free trade zone with direct port connectivity and the warehouse processing is enhanced by as much as 15%. Additionally, it is well-linked to the air hubs and roads which enable better hub-and-logistics flow and faster cargo turnaround.

The new facility is also customised to Volkswagen’s requirements. Volkswagen head of group after-sales Roman Havlásek believed that their new parts distribution centre in Malaysia would strengthen the group’s after-sales supply chain, which is a key milestone in providing improved genuine parts delivery to our customers in Asia Pacific.

“The government, through the Malaysian Investment Development Authority (Mida) greatly supported our relocation to Malaysia. We were pleased by the ease of implementing our project here and the assistance given by the team at Mida,” he said in a statement yesterday.

Director after-sales for the APAC region Marco Beitien said the strong necessity of the parts distribution centre made it possible for the group to overcome challenges brought about by the Covid-19 pandemic in the region so far.

“Despite the unprecedented Covid-19 situation, the government swiftly implemented measures to enable business continuity within the safety of workers and community, which is also our top priority. This allows us to maintain a stable parts supply in the region to support vehicles used in the essential industries like ambulances and security vehicles, even during the critical phase,” Beiten said.

Head of sales Dr Christian Dahlheim said the APAC offers a lot of growth potential for the group, especially when it comes to e-mobility.

“Malaysia offers a central and well-connected location which perfectly suits our plans to expand our foothold in the region,” he said.

Meanwhile, Senior Minister for Economy and International Trade and Industry Minister Datuk Seri Mohamed Azman Ali noted that Volkswagen follows the increasing trend of the establishment of global and regional distribution hubs in Malaysia.

Such industries include automotive, life sciences and medical devices, electrical and electronics, and machinery and equipment.

“These companies seek to tap on Malaysia’s strategic location, as well as our efficient and reliable infrastructure such as ports, airports and financial institutions, allowing them to improve operational efficiency, and optimise product and service quality and speed for their customers. Robust connectivity is paramount in enabling their investment and human capital to flow more freely across borders,” the minister said.

The Global Trading Centre (GTC) scheme was announced in Budget 2021 as part of the country’s efforts to encourage both local and multinational companies to establish their global and regional distribution hubs.

The GTC scheme is an enhanced, comprehensive scheme which provides tax incentive and facilitation in order to ease both import and export activities. It also supports companies in key manufacturing and services sectors venturing into procurement, distribution and trade activities.