Suzuki Motor Corp will invest “several billion yen” to build a second auto plant in Myanmar in a bid to make quick inroads into the country’s booming auto market, a report said.
Japan’s Nikkei business daily reported that the company has secured a 20-hectare plot at the Japanese-backed Thilawa special economic zone, 25 kilometres from the country’s commercial hub Yangon.
The Japanese carmaker is expected to invest several billion yen and hire about 300 staffers, the report said.
Construction is expected to start later this year, with the facility slated to come online in 2017, the newspaper added.
The new plant will assemble imported parts and initial output is seen at about 10,000 cars a year. It could produce the Ertiga, a seven-seat compact, among other models, Nikkei reported.
Suzuki began production in Myanmar in 1999 through a joint venture with a state-owned enterprise but pulled out at the end of 2010. Suzuki resumed auto production in 2013 and now produces about 150 Carry minitrucks in its factory in South Dagon Industrial Zone.
Japanese companies have made big advances recently in terms of investing in Myanmar and getting involved in several key infrastructure projects. Unlike its Western allies, Japan maintained trade ties and dialogue with Myanmar during junta rule, saying a hard line could push it closer to China.