A subsidiary of Japanese conglomerate Marubeni Corp will form a joint venture to start a corrugated container business in Yangon’s Mingaladon Industrial Park, the company said.
Malaysia-based GS Paper & Packaging Sdn Bhd (GSPP), where Marubeni holds 25 percent and Oji Holdings Corp 75 percent stake, will invest as a major stakeholder along with a local partner to form the Myanmar JV.
Operation will start in the first quarter (April-June) of 2015, Marubeni said.
The new entity, Oji GS Packaging (Yangon) Co Ltd, will manufacture and sell corrugated container products such as sheet and box.
Foreign-affiliated companies including Japanese companies have been extending their businesses to Myanmar, a country with inexpensive labour and abundant natural resources. The domestic demand is also expected to surge as a result of the recent economic reforms.
Marubeni said it forecasts an increase in demand for high-quality corrugated container products. “The new joint venture company will incorporate its demand by utilising well-equipped and modernised converting facilities in Myanmar ahead of its competitors,” the company said.
Marubeni opened a branch office in Yangon in 1942, and has invested in infrastructure development such as power plants. The company opened a liaison office in Nay Pyi Taw in January 2012.
Source: Myanmar Times