Branded footwear maker plans operation in Myanmar

Taiwan-based Pou Chen Group, the world’s largest contract manufacturer of footwear by shipments, will invest US$100 million to set up a manufacturing base in Myanmar, the company’s Myanmar director said.

Ou Chin-Nan said the footwear factory would manufacture internationally known brands – Adidas and Nike – for export.

Located in Yangon, the new plant will be built on 40 acres of land in Thardukan Industrial zone in Shwepyithar Township. Construction will take two years and the operation is set to begin by the end of 2015. The factory will be under a 30-year lease contract.

The new plant is expected to produce 300,000 pairs of shoes initially and the capacity will be increased to 800,000 pairs in 2019, Pou Chen Group’s chief executive officer Patty Tsai told Taiwan’s local media.

The factory’s annual power consumption is 18.4 million kilowatt per hour. E Guard Environment Services Co conducted a preliminary environmental impact assessment. The company met with local people to explain the facts about the project on November 24.

According to the preliminary environmental impact assessment, there is no significant impact. The detailed assessment will be based on the environmental conservation department, said Aye Thiha, managing director from E Guard Environment Services Co.

The manufacturing base in Myanmar will increase the group’s competitiveness. The group is keen to expand to new destinations apart from China, Vietnam and Indonesia. The wages in China are gradually becoming high and the recent anti-China protests in Vietnam has fuelled its decision to set up the new plant in Myanmar.

Pou Chen Group has investments in US, Mexico, Vietnam, Cambodia, Taiwan and Bangladesh. It is a listed company in the stock exchanges of Taiwan and Hong Kong.

Source: The Nation

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