Ja­pan’s Toyo Ink Group makes $6.5m in­vest­ment in Myan­mar

The Myanmar Times - - Business - KANG WAN CH­ERN ch­ern@mm­times.com

JA­PANESE chem­i­cal maker Toyo Ink Group SC Hold­ings Co has marked its first full foray into Myan­mar with plans to de­velop a new pro­duc­tion fa­cil­ity in Yan­gon’s Thi­lawa Spe­cial Eco­nomic Zone next month.

The $6.5 mil­lion fa­cil­ity is ex­pected to break ground in Novem­ber and com­mer­cial oper­a­tions are ex­pected to be­gin in Novem­ber next year.

Toyo Ink Group has sub­leased a 12,000 square me­ter plot in the Thi­lawa’s Zone B for its ini­tial con­struc­tion plans. The land and fa­cil­ity will pro­vide the com­pany with “am­ple room for ex­pan­sion for the fore­see­able fu­ture,” the com­pany said in an emailed re­sponse to The Myan­mar Times.

The new Myan­mar fa­cil­ity will ini­tially be en­gaged in the pro­duc­tion of liq­uid inks for pack­ag­ing, ad­he­sives for films and off­set inks for the com­mer­cial print­ing mar­ket.

While mon­i­tor­ing mar­ket and reg­u­la­tory trends, the com­pany plans to ex­pand pro­duc­tion ca­pac­ity and prod­uct of­fer­ings in Myan­mar. In fact, it is ex­pect­ing sales from its Myan­mar fa­cil­ity to reach the JPY1 bil­lion mark “within a few years.”

Toyo Ink Group makes spe­cialty chem­i­cal ma­te­ri­als based on func­tional pig­ments and poly­mers, which are the raw ma­te­ri­als in print­ing inks. It does busi­ness in a wide ar­ray of global mar­kets such as panel dis­plays, elec­tron­ics, food pack­ag­ing and med­i­cal ad­he­sives, all of which rely on its core ma­te­ri­als of inks, poly­mers and col­orants.

The com­pany first be­gan eye­ing ex­pan­sion into Myan­mar in 2010. “A num­ber of events have tran­spired in the past few years that make Myan­mar an at­trac­tive in­vest­ment des­ti­na­tion, such as the gov­ern­ment’s strong sup­port of strength­en­ing trade and in­vest­ment in the coun­try, im­prove­ments to infrastructural net­works and con­tin­u­ous GDP growth,” the com­pany said.

The re­sult is an “in­flux of food manufacturing brands set­ting up oper­a­tions [in Myan­mar], mak­ing it a promis­ing mar­ket for us,” it said. Food man­u­fac­tur­ers form part of Toyo Ink Group’s cus­tomer base.

“Myan­mar pre­sents a huge po­ten­tial for the Toyo Ink Group,” said group CEO Kat­sumi Kita­gawa.. “As the first ma­jor ink man­u­fac­turer to set up a pro­duc­tion foothold in Myan­mar, we look for­ward to es­tab­lish­ing an early lead­er­ship po­si­tion in mar­kets where we can play to our strengths like food pack­ag­ing and com­mer­cial print­ing.”

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