Author: Myanmar Business Today | 08 Nov 2017

Tokyo — JFE Steel Corporation, Me­ranti Steel, JFE Shoji Trade Corpora­tion, Marubeni-Itochu Steel, and Hanwa Co, announced today their agreement to form a joint venture to produce and sell hot-dip galvanized and colored flat steel products for the building and construction sector in Myanmar.

The five companies will establish a manufacturing and sales company, JFE Meranti Myanmar Co. Ltd., in Myanmar through a Singapore-based hold­ing company, JFE Meran­ti Myanmar Holding Pte. Ltd. The joint venture will seek approval from rel­evant authorities to con­struct a new plant, and aim to launch operations in 2020. The plant is to be located in the Thilawa Special Economic Zone (SEZ) with a total invest­ment of approximately $85 million US dollars, according to a joint press release.

Since democratization of Myanmar in 2011, eco­nomic development has progressed dramatically. The demand is rapidly expanding for flat steel products for building and construction, such as roofs, walls and struc­tures. Currently, most of these steel materials have to be imported, but the need is expected to rise for locally produced high-quality products supported with technical services and short lead times. The demand will increase as foreign com­panies increasingly en­ter Myanmar and build manufacturing plants, and as customer prefer­ences shift to higher-end products as the standard of living rises.

The new joint venture aims to promptly launch its lines for hot-dip gal­vanization and coating to capture the increasing demand for high-quality thin-plate building mate­rials. This will be the first project in Myanmar fo­cused on manufacturing high-grade galvanized flat steel products.

Meranti is a venture company with abundant knowledge of flat steel products for building and construction, for which it has conducted detailed studies and marketing in Myanmar. The new joint venture plans to maxi­mize customer satisfac­tion by leveraging the manufacturing technol­ogy and quality-control know-how of JFE Steel and the overseas net­works of JFE Shoji, MISI and Hanwa.

JFE Engineering, a member of the JFE Group, is already conducting a wide range of infrastruc­ture-related businesses in Myanmar. JFE now looks forward to contributing to further economic de­velopment in Myanmar with its flat steel products for the country’s building and construction sector.


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