Myanmar Motor Corporation Public Company Limited (MMC), a Yangon-based company that plans to operate a $10-million bus assembly and production facility, is keen to rope in overseas investors by divesting 50 per cent stake in the venture.
The company is currently in talks with two well-known foreign brands in the motor production space. The move is also seen as a means to expand its footprint outside Myanmar.
MMC president Htay Aung said, in an interview with DEALSTREETASIA, the move will enable the firm to expand to foreign markets, mainly in Asia.
Aung said, MMC expects to hold a majority of 50 per cent stake and divest the rest to two foreign companies.
“Those foreign companies have been selling their brands in the Asian region and we aim to secure those markets,” he said.
MMC is an exclusive dealer of MAN, the German commercial vehicle brand, through which they order parts and assemble in China. The finished products (buses) are imported back to Myanmar. Earlier, the firm produced garbage trucks.
The company is soon looking at rolling out MAN buses from its assembly in Yangon after it secured the production licence to locally manufacture the vehicles in January this year.
The facility is located in a four-acre land in Mingalardon township with a capacity of 30 buses per month. The initial assembly will be for two types of buses – 49-seater and 55-seater buses for city and highway routes.
The company is targeting to assemble and produce 100 busies per year and increase the capacity to 200 by year nine.
“We don’t have an intention to work solely with MAN but with other brands too,” said Aung.
Started in 2012, MMC is a consortium of 31 local companies including Sakura Trade Center Co Ltd, Sakura Engineering and Construction Development Co Ltd, Sakura Technical Services Co Ltd.
Well-known for Sakura Auto Co Ltd, which imports new and reconditioned cards, Aung also built the Sakura Hospital in Yangon. Current ongoing projects handled by Aung include a 22-storeyed Sakura Trade Center in South Okkalapa and a 20-storied Sakura Business Tower in Ahlon township.