Posted on 08 Mar 2015
Thai stock exchange listed steelmaker Millcon Plc is expected to start
its operations in Myanmar next year after being granted a licence to
invest in the special economic zones recently.
Mr Sittichai Leeswadtrakul president and CEO of Millcon Plc said that
its factory was due to be ready by year-end and would start operating
commercially early next year. Millcon joined up with General Engineering
Plc, a concrete materials maker, to build the factory to produce steel
for construction and prefabricated concrete materials at Thilawa
Industrial Estate.
Millcon owns 45% of the new asset, while General Engineering owns 45%
and local partners 10%. Millcon invested USD 7 million and expects the
project to break even within seven years. The joint venture was the
first partially owned Thai company to receive a Myanmar SEZ investment
licence.
The construction materials factory is projected to earn THB 900 million
in revenue in 2016 and 1.2 billion by 2018, when it reaches full
capacity. Millcon's total revenue is projected to reach 20 billion baht
in 2016.
Mr Sittichai said that "Although steel demand in Myanmar is small,
around 2 million tonnes last year compared with 18 million tonnes in
Thailand, the demand in Myanmar doubles every year. The factory in
Myanmar would be a production base for several grades of commercial
steel products.
He said that "We will focus on downstream products because they require a
smaller investment budget than upstream products and their prices are
less volatile."
