Thilawa Special Economic zone has a new investment project, a joint venture valued at $15m for a new Millcon steel manufacturing plant that will produce up to 90,000 tonnes per year. This follows an announcement last year when contracts were signed with Myanmar Japan Thilawa Development (MJTD) to focus on this Special Economic Zone (SEZ).
The partners in the joint venture are Millcon 45%, General Public Engineering of Thailand (GEL) 45% and Myanmar Thiha Group 10%. They plan to start production in the new facility by the end of 2015.
Millcon Steel produces steel for use in many industries including construction. They have seen growth in demand in Myanmar with new Government backed projects and private sector developments for shopping centres and multi-purpose tower blocks. They estimate a 15% growth in demand for steel above the current national annual demands of 2 to 3 million tonnes.
Currently most Millcon production is in Thailand with up to 850,000 tonnes produced per year. They reported in their research considerable contrast between Myanmar and Thailand in terms of steel used. Based on current population estimates for Myanmar of 54.2 million (2014) they estimated 1.33 million tonnes per year is used, whereas with Thailand’s population of 67.7 million (2014), 17.7 million tonnes is used.
Last year Millcon Steel signed agreements with The Thiha Group to set up a 51% and 49% joint venture in Myanmar called Millcon Thiha to supply a full range of construction materials.
Notes:
Myanmar Japan Thilawa Development Limited is a Thilawa SEZ Class A Development Company established in January, 2014. Its Shareholders include MMS Thilawa Development Co., Ltd. (Mitsubishi Corporation, Marubeni Corporation and Sumitomo Corporation), The Japan International Cooperation Agency (JICA), Myanmar Private SPC (Special Purposes Company) and Myanmar Government (Thilawa SEZ Management Committee).
General Engineering Public Company Limited manufactures and distributes concrete products.
