KUALA LUMPUR: Daibochi Plastic and Packaging
Industry Bhd will invest USD6.8mil (RM29mil) to set up a joint venture company in Myanmar to tap into the growing consumer packaging market there.
The flexible packaging manufacturer had on Monday inked an memorandum of agreement with Myanmar Smart Pack Industrial Company Ltd (MSP) to set up a production facility in Myanmar, under the JV company, Daibochi Packaging (Myanmar) Co. Ltd. (DPM).
The JV company, in which Daibochi will have a controlling stake, will take over MSP's existing business, premises and equipment in Myanmar.
Daibochi managing director Thomas Lim said the group also plans to invest an additional capital expenditure of US$5.5mil (RM23.6mil) over three years to enhance the production capacity, quality and efficiency of the manufacturing facility there.
"We believe that Myanmar is poised to witness a high growth trajectory, propelled by the increasing economic development and anticipated influx of global brands of fast moving consumer goods and food and beverage as the country opens up.
"The significantly lower manufacturing costs in Myanmar also enable us to enhance our competitive advantage in the export market," he told reporters.