First step to meet local demand of 2000 bus yearly
SC Auto sets up first overseas S$30 million facility in Myanmar
Tan Siow Chua, founder and chairman of SC Auto Industries.PHOTO: BUSINESS TIMES
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Rupali Karekar
SINGAPORE - Bus manufacturer SC Auto announced on Monday (June 12) it is setting up a S$30 million facility in Yangon, Myanmar with support from International Enterprise (IE) Singapore, as it seeks further growth for its business.
The 16,000 square meter facility, slated to begin production in the fourth quarter of 2018, will enable SC Auto to increase its production by four times, allowing it to meet the growing demands of both Myanmar and the region, the company said in a release issued on Monday.
"Having built a strong foothold in Singapore, we needed to look overseas to continue to grow our business," Mr Tan Siow Chua, chairman of SC Auto, said. "With its demand for public transport, proximity to emerging Southeast Asian countries, as well as availability of land and relatively lower labour costs, Myanmar is the ideal location for our first venture overseas."
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The company which has strong operations in Singapore has already been exporting buses to Myanmar. The new in-market manufacturing facility will allow it to be closer to its customers and respond more quickly to their requirements, the company said. It aims to produce over 100 buses in its first year in Myanmar and double its revenue. With the added international operations, manpower hires will increase to 600.
SC Auto will also invest in robotic welding for this facility, yielding greater efficiency in the production process.
IE Singapore, a key partner in SC Auto's journey to develop its internationalisation strategy and operational plans, helped the company navigate Myanmar and familiarise it with the business landscape, understand market regulatory issues and connect with new customers. SC Auto also tapped into IE Singapore's Internationalisation Finance Scheme to support the set-up.
"As the first approved foreign bus manufacturing company in Myanmar, SC Auto has the first mover advantage to address the huge demand in the country," Mr Law Chung Ming, Group Director for Transport & Logistics, IE Singapore, said. "With rapid urbanisation in Southeast Asia, there is a pressing need for transport and logistics solutions to enhance domestic and intra region connectivity. This presents excellent business opportunities for Singapore land transport companies, such as SC Auto, to export reliable land transport solutions and create quality jobs for Singaporeans."
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Local firm plans Daewoo bus factory in Yangon
By Aye Nyein Win | Friday, 12 August 2016
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Myanmar Coach Centre, the local distributor for Daewoo buses, plans to build a factory in Yangon that could start producing coaches and city buses by 2018, its managing director said.
The company, which sells minibuses and coaches for tours, imported 15 Daewoo city buses earlier this year for Yangon’s Bus Rapid Transport (BRT) system, the city’s first public-private-partnership bus line.
It now hopes to expand its operations with a US$10 million factory in Yangon’s Mingaladon township, managing director U Kyaw Kyaw Aung said. His company has applied for a permit from the Ministry of Industry and is ready to start building as soon as permission is granted.
http://www.mmtimes.com/index.php/business/21938-local-firm-plans-daewoo-bus-factory-in-yangon.html
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MOU will help S'pore firms looking to Myanmar
As at March 31, Singapore was Myanmar's top foreign investor, with investments amounting to US$4.3 billion (S$5.9 billion).
http://www.straitstimes.com/business/companies-markets/mou-will-help-spore-firms-looking-to-myanmar
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Potential $6bn coal-fired power investment set for Myanmar
The first coal-fired plant planned in Mon state is expected to have a production capacity of 1280 MW, and will cost $3bn. The second plant 1280 MW in Kayin is still under study. TTCL is likely to take another 30 months before putting a formal proposal in front of the Myanmar government.
http://www.powerengineeringint.com/...l-fired-power-investment-set-for-myanmar.html
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India awards road contract to complete Kaladan project in Myanmar
Pratim Ranjan Bose
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A Rs. 1,600-crore contract has been awarded for building 109-km road connecting Paletwa river terminal to Zorinpui in Mizoram border.
Kolkata, June 9:
The Narendra Modi government is finally on course to completing the $484-million Kaladan multi-modal transport projects in Myanmar that will offer connectivity to Mizoram in India. Kaladan was the first major project taken up by India in Myanmar.
According to sources, a ₹1,600-crore contract has been awarded for building 109-km road connecting Paletwa river terminal to Zorinpui in Mizoram border. The construction is expected to start after the monsoon in October.
India completed the construction of Sittwe port, at the estuary of Kaladan river, in trouble-prone Rakhine state of Myanmar, last year, one year behind schedule. Construction of the river terminal 158 km upstream and dredging of the river to ensure navigability are in the final stages.
At the Indian side, extension of the Aizawl-Saiha National Highway by 90 km to the international border at Zorinpui, at the southern tip of Mizoram, is almost over.
Four-laning of highway
It was one of the most challenging road projects taken up in this part of the country, in decades.
Also, a ₹6,000-crore project is under way for four-laning of the 300 km Aizawl-Tuipang highway to ensure faster movement of goods between Sittwe and Mizo capital of Aizawl in the North West which is close to the Barak Valley of Assam.
However, absence of the road link between Paletwa and Zorinpui led to doubts over the utility of such huge investments on either side of the border. Sources told
BusinessLine that not a single ship has called at the Sittwe port so far.
Inordinate delay
Mooted in 2003, India entered a framework agreement with Myanmar for Kaladan project in 2008. Construction began in 2010 with a deadline in June 2015. But, no headway was achieved on the road project.
Inadequate fund allocation and planning failure were seen as major reasons for the delay.
In October 2015, the Narendra Modi government revised the budget estimates by nearly six times to ₹2,904 crore and roped in State-owned Ircon Infrastructure and Services Ltd as consultant with an aim to complete the project in 2019.
However, finding a contractor became an issue. Last year, the project was tendered twice but without success. Sources say the logjam was broken recently as the project was awarded to a Delhi-based firm C & C Constructions.
While C&C could not be contacted, sources said the contractor would mobilise men and machine during the monsoon and open offices at Sittwe, Paletwa and Yangon in Myanmar.
SEZ at Sittwe
According to sources, as per the framework agreement, India should also set up an SEZ at Sittwe, which is located closer to the Chinese port and SEZ at Kyaukphyu.
In 2015, the Ministry of External Affairs appointed a consultant to explore the possibility. A suitable land was also identified in Sittwe. This is important to promote Indian investment in the region overriding strong Chinese influence.
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@Nilgiri bro.
i think this is the latest news for sittwe and kaladan projecta what u asked me last time.