Millcon Steel has joined with Thiha Group to set up a 51:49 joint venture in Myanmar to engage in the trading business with focus on the full range of construction materials.
Sittichai Leeswadtrakup, president and CEO, said on Monday that the company
has proceeded with the registration of Millcon Thiha Co in Myanmar following its board’s approval of the joint venture.
The aim is to open up opportunities to support Millcon’s future growth.
Initially, Millcon Thiha will trade in steel and construction materials.
Millcon sees vast opportunities and strong growth with the opening up of Myanmar ahead of the Asean Economic Community 2015.
Myanmar needs to invest in building roads and basic infrastructure to support its growing economy.
Myanmar’s population of about 70 million consumes 19 kilograms of steel per person per year, or a total of only 1.33 million tonnes a year, while Thailand’s 65 million population consumes 17.7 million tonnes.
That shows there is a huge room for growth in steel consumption in Myanmar as the country tries to catch up with its Asean neighbours.
To gain access and an early edge in Myanmar, Millcon will develop and offer a wide range of construction-related steel products for Myanmar that will help support the firm’s continuing growth and prosperity both locally and in Asean.
Myanmar’s Thiha Group, the partner, was founded in mid 2012 in response to the Myanmar government’s genuine commitment to reforms, and consequently, their interest in attracting significant foreign direct investment and reviving economic growth. It was conceived by Aye Thiha, a former UBS Investment Banker, who has advised various leading multinational corporations on their corporate finance and capital market transactions globally.