RENEWABLE energy company Van der Horst Energy (VDHE) on Monday began construction of its GKE warehouse, with plans to install the largest solar energy system in Singapore.

When completed in September next year, a four-storey warehouse and a seven-storey office complex will be built on the 18,700 square metres site at Pioneer Road.

Besides VDHE's headquarters office, the building will house offices and operations for all of its Singapore subsidiaries, such as logistics company GKE, as well as a clean room for research and development in enzymes.

Speaking at the groundbreaking ceremony at Pioneer Road, VDHE's chief executive Peter Cheng said: 'Our company has a strategy to counter the crisis - we want...not only to expand but to expand quickly.'

Also in the works are 5,000 square metres of solar panels to be installed on the building, which will be able to generate up to 400kw of power per hour. This would be the largest solar energy system installation in Singapore if it materialises.

Another eco-friendly design feature of the warehouse is a rainwater collection tank underneath the building. The water collected will be used for sanitary flushing, plant irrigation and washing of vehicles.

Minister of State for Trade and Industry Lee Yi Shyan, who was the guest of honour at the ceremony, advised logistics companies to be forward-looking despite the current dip in demand.

'To build a competitive edge, logistics companies can enhance customer service by offering integrated solutions that reduce the total cost of transportation and storage,' he said.