ERJ staff report (BC)
Yangon – FGV Pho La Min Co Ltd, a joint venture company between FGV Myanmar (L) Pte Ltd and Pho La Min Trading Co Ltd (PLM), will invest between $10m (RM 32.6m; €7.21m) and $15m (€10.81m) to set up a rubber processing plant in Myanmar, reported the Malay Mail.
The plant in Myeik, in the country’s extreme south is scheduled to be completed by the first quarter of next year.
FGV Myanmar is a subsidiary of Felda Global Ventures Holdings Bhd (FGV).
“The joint venture company plans to be involved in many areas, but this year we will concentrate on the rubber industry,” said FGV Group president and chief executive officer Mohd Emir Mavani Abdullah at a media conference after the joint venture agreement signing ceremony at Yangon.
He said the joint venture marks a new milestone for FGV in Myanmar since the last memorandum of understanding signed with PLM in September 2012.
FGV holds a 51 per cent equity interest in the joint venture, with PLM holding the remaining 49 per cent stake.
Besides constructing the plant with a target capacity of 24 000 tonnes per year, the joint venture company also plans to open another plant in Mon state and develop 30 000 ha of greenfield and 10 000 ha of brownfield land, he said.
The greenfield development would be staged, as the Myanmar government only allows a 70-year land lease for foreigners.
He also said the company’s next focus would be on the rubber processing segment, with the possibility of venturing into the downstream business.
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Full story from Malay Mail