Tan Chong Motor Holdings Bhd (TCMH) is making its foray into Myanmar to manufacture and market vehicles there and this would involve an investment of US$50mil.
TCMH said on Friday its Labuan incorporated subsidiary, ETCM (MM) Pte Ltd, has received a permit from the Myanmar Investment Commission to manufacture and sell vehicle in the country’s industrial area of Bago region.
It said the permit was for 50 years and could be extended for two terms of 10 years each.
The assembly plant in Bago, sited on a 50 acre leased land, would be used to assemble Nissan vehicles to be distributed by the TCMH group.
TCMH said construction of the plant would start within one year from the date of the permit and was expected to be completed in three years.
“It is projected to have an initial production capacity of 9,100 units per annum based on one shift for the first five years.
“Total capital outlay of the TCMH Group for the activities to be carried out by TCM Myanmar, including construction of assembly plant and showroom, purchase of machinery and equipment for the initial first three years is estimated at US$50mil and will be funded internally and from external borrowings,” it said.
Source: THE STAR ONLINE