Timberland owner VF Corp sets up new business centres in Singapore, Malaysia

VF Corp, which owns outdoor lifestyle brands like Timberland, plans to shift its regional operations base from Hong Kong to Shanghai.
VF Corp, which owns outdoor lifestyle brands like Timberland, plans to shift its regional operations base from Hong Kong to Shanghai.PHOTO: TIMBERLAND

SINGAPORE (THE BUSINESS TIMES) - New York-listed VF Corp, which owns outdoor lifestyle brands such as Vans and Timberland, will open new business centres in Singapore and Kuala Lumpur.

The moves came amid plans on Monday to shift VF's regional operations base from Hong Kong to Shanghai in a fresh push for the Chinese market, which contributed to 7 per cent of group revenue in FY2020.

An Asia supply chain hub in Hong Kong will relocate to Singapore, while a new services centre in Kuala Lumpur will support business functions in areas such as digital technology, finance, human resources and logistics.

The moves, to be done in phases, will start in April and are expected to be completed by mid-2022.

Steve Rendle, chairman and chief executive of VF, said that there are "significant opportunities in creating a hyper-digital supply chain with a key hub in Singapore". The planned facility in the Republic will boost integration across VF's global supply chain network, according to the group.

"Today's announcement reinforces our commitment to invest in our business across the Asia-Pacific region, while also supporting VF's overall transformation plan to become a more consumer-minded, retail-centric and hyper-digital enterprise," Mr Rendle also noted.

Denver-based VF said in a statement that it aims to strengthen its relationships with consumers in China, but added that Hong Kong will remain a key retail market.

VF's global production sites include factories in Bangladesh, Cambodia, Indonesia, the Philippines, Thailand and Vietnam, while 13 per cent of the group's US$10.5 billion in revenue came from the Asia-Pacific region in the year to March 28, 2020.