Nissan will start manufacturing vehicles in Myanmar, being the first automaker to do so since the western sanctions have been eased in 2012 in the country.
Nissan, which is the sixth largest automaker in the world, has been granted approval by the authorities in Myanmar to build a plant here which will produce vehicles for the local market and which will use imported parts. The official announcement is expected to be made tomorrow, September 20th, when CEO Carlos Ghosn will make a visit to Myanmar.
Expanding in Myanmar is considered a natural move by Nissan which already has plants in the neighboring Thailand and India, and a strong presence in Malaysia and Indonesia. Although Nissan is the first big automaker to manufacture cars here, Ford has already started selling vehicles in this country, which is still dominated by used car sales.
“We appreciate all the support we have received from the Myanmar government,” said Nissan.
Investors and multinational companies have begun to turn their attention to Myanmar, formerly known as Burma, after the burst of the military dictatorship reform has created commercial opportunities sooner than expected.
Cigarette maker BAT announced it will invest $50 million in a new factory in Myanmar, while ThaiBev, Carlsberg, and Heineken brewers have all entered this market earlier this year. Coca-Cola opened several months ago a bottling plant in the country and PepsiCo has signed an agreement to distribute soft drinks and snacks here.
by Ana Cezara Savin
) - Thursday, September 19th, 2013 - filed under Industry
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