Monday, November 4, 2013

Japan, Myanmar inks deal to develop industrial complex

Japanese and Myanmar companies signed a deal on Tuesday to develop an industrial complex in the suburbs of Yangon, the largest city of Myanmar.

Three Japanese companies, namely Mitsubishi Corporation, Marubeni Corporation and Sumitomo Corporation, will join hands with a public-private partnership between the government of Myanmar and local enterprises to develop the Thilawa Special Economic Zone project.

Following a feasibility study over the past several months, the consortium will focus on developing the "Class A Area," the section of the Thilawa Special Economic Zone designated for initial development.

"Myanmar has cheap and abundant labor power and we believe that Thilawa has a very high potential as a production base," Toru Kabeya, an official of the Transport Infrastructure Project Department of Marubeni, said at a press conference.

The three Japanese companies will hold a 49 percent stake in the consortium, while the remaining 51 percent will be owned by the Myanmar government and local private companies, he added.

The industrial complex is expected to start commercial operation in 2015, which will house car plants and other services.