Suzuki Motor Corporation has chosen Myanmar to build a new assembly plant with an annual capacity of 20,000 to 30,000 cars.
The Japanese carmaker will set up a new facility in Thilawa District of Yangon, Myanmar’s largest city. Operations at the new plant are expected to start in 2015.
In the first years of activity, Suzuki expects the new assembly plant to manufacture several thousand cars each year. The new facility will be built on 40 hectares of land and will be established as a wholly owned Suzuki subsidiary in the Southeast Asian country.
Suzuki is being helped by Japan’s government in this project, and Japanese officials will also assist the Myanmar organisations to improve infrastructure facilities like electricity, water and sewerage. In addition, the Japanese government will offer loans to the Myanmar government to develop the Thilawa district of Yangon city, one of the world’s largest industrial complexes.
Suzuki is expected to invest several billion yen in the assembly plant, according to sources quoted by Asahi Shimbun newspaper. About 2.3 million cars are registered in Myanmar, with most of them imported from Japan.
Foreign companies are entering Myanmar, a country which has shifted from military junta rule to reform and an open economy. The country has a population of about 62 million and labor costs that are only a quarter of those in Thailand.