Myanmar Dealbook: New 250 MW power plant in Thilawa SEZ; Pou Chen starts operations with $100m investment

Visual via MBT (ADB)

Myanmar is buzzing with investment activity across sectors. While the tender to build a new 250 megawatt power plant project will be finalised soon, Pou Chen Co Ltd started manufacturing for leading sports footwear companies investing $100 million in the operations.

New 250 MW power plant in Thilawa SEZ

The Ministry of Electric Power is opening a tender to build a 220 to 250 megawatt (MW) power plant in Thilawa Special Economic Zone.

The project is for an independent power producer (IPP), who will have take care of the sourcing, taxation and transportation of fuel for the power plant.

Interested bidders need to furnish a bond of $5 million and one partner of the IPP (consortium) needs to show a cash flow of not less than $1 billion in the previous five years.

The contract for the project is expected to be signed in December 2015.

The project is expected to serve Yangon’s power demand though there is no information on power purchase agreement with the Yangon Electricity Supply Board yet.

There is already a 50 MW gas-based project under construction at Thilawa through an agreement between Japan’s Sumitomo Corporation and Myanmar Electric Power Enterprise to supply to the special economic zone. Gas from the Myanmar’s Zawtika gas field, at Mottama offshore, will be used to supply the 50 MW power plant. However, for the new 250 megawatt power plant, the investor will need their own sourcing of fuel.

Pou Chen rolls out with $100 m investment

Pou Chen Group, a manufacturer for branded athletic and casual footwear companies, launched its first footwear factory in Myanmar and will start operations by the end of 2015 with an investment of $100 million.

Myanmar Pou Chen Company Limited, founded in 2014 with its factory in Shwe Pyi Thar township, is scheduled to be operational by the end of 2015, mainly manufacturing football shoes for the Adidas brand, in Myanmar, said Mr Henry Chen from the human resource department of Pou Chen.

“We are scheduled to be operational at the end of 2015, with monthly output of 300,000 pairs of shoes initially which can go up to 800,000 pairs in 2019,” said Chien.

Set on a 40-acre land, the factory is expecting to employ up to 10,000.

One of the challenge the factory is facing is availability of labor to enhance the production efficiency, Myanmar Pou Chen is using a number of methods for recruiting that includes job postings, announcements and social media. “We also try to use broadcasting around the village by bicycles in Yangon, Taunggyi, Lashio and Mandalay,” said Chien.

He said, the production efficiency will be improved with the use of auto rotation equipment.

Pou Chen Group has factories in China, Taiwan, Hong Kong, Vietnam, Indonesia, Cambodia, Bangladesh, America and Mexico with a total staff of over 420,000 and a production of over 300 million pairs of shoes a year.

Some of the brands that Pou Chen Group manufactures for include Adidas, Nike, Reebok, Puma, Converse and Timberland.

There are many companies investing in the footwear industry in Myanmar and Pou Chen is among the three suppliers in Myanmar, Hwa Seung Vina and Shyang Jhuo Yue, to make for Adidas.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.