KUALA LUMPUR: Corrugated carton maker Box-Pak
(M) Bhd, encouraged by the opening of Myanmar’s economy, plans to set up a manufacturing plant in the republic.
The Kian Joo Can Factory subsidiary, which already has overseas operational bases in Ho Chi Minh and Hanoi (Vietnam), told Bursa Malaysia it wanted to broaden its revenue base by tapping on the existing and new markets there.
For the purpose of setting up the plant, Box-Pak’s indirect unit Boxpak (Myanmar) Co Ltd on Tuesday inked an agreement with Myanmar Japan Thilawa Development Ltd (MJTD) to sublease a plot of land measuring 74,830 sq m in Thilawa Special Economic Zone (SEZ), Yangon.
In June, Thilawa SEZ management committee, representing the Myanmar government, had given MJTD the right to sublease parcels of land in the Class A area to third parties.
Boxpak Myanmar’s lease tenure runs from the date of execution of the land sublease agreement to June 4, 2064. The payment for the term is US$75 per sq m for a total aggregate payment of US$5.612mil (RM24.03mil) excluding any applicable taxes or charges.
If MJTD extends its lease to the Class A project by exercising its options under the primaey lease agreement with the management committee, Boxpak Myanmar may have the option to extend the lease tenure for a further 25 years.
Box-Pak noted that the land was strategically located near the Myanmar International Terminals Thilawa and Thilawa Railway Terminal. Thilawa also has its own power, water and Internet supplies.
In addition, it said, companies located in Thilawa were given tax advantages.
The Batu Caves-headquartered Box-Pak, which is 54.83% owned by Kian Joo Can Factory Bhd
, has an ambition to be a regional player.
Box-Pak shares fell 1 sen to close at RM2.84 on Tuesday.