Box-Pak (M) Bhd has entered into a long-term lease agreement with Myanmar Japan Thilawa Development Ltd (MJTD) for a plot of land in Yangon as the company seeks to set up its first plant in Myanmar.
The corrugated carton box maker will pay US$5.6mil for rights to use the 18.5 acres in the Thilawa Special Economic Zone until June 2064.
The agreement comes with an option to extend the lease for a further 25 years.
In a filing with Bursa Malaysia yesterday, Box-Pak said the lease transaction was in line with the group’s strategy to expand into newly-opened Myanmar to broaden its revenue base and source of earnings.
It intends to do so by setting up a new manufacturing plant to tap the existing and new markets there.
The group currently has operational bases in Batu Caves and Senai in Malaysia and in Ho Chi Minh City and Hanoi, Vietnam.
The said land is located near the Myanmar International Terminals Thilawa and Thilawa Railway Terminal. Thilawa has its own power, water and Internet supplies.
Companies located in Thilawa are given tax advantages, according to the group.
MJTD was founded as a special purpose vehicle between MMS Thilawa Development Co Ltd – which involved Mitsubishi Corp, Marubeni Corp and Sumitomo Corp – and Japan International Cooperation Agency, Myanmar Thilawa SEZ Holdings Public Ltd and the Myanmar government.
Source: The Star
