Japan-based Mitsui says it will invest 1.2 billion yen (US$10.50 million) to build a fertiliser plant in Thilawa Special Economic Zone in cooperation with Singapore’s Behn Meyer and the Myanmar Agribusiness Public Corporation (MAPCO).
Mitsui & Co Ltd entered into an agreement with Behn Meyer to form a joint-venture company, BMM Venture, registered in Singapore. Mitsui will acquire a 49-per-cent equity stake.
With MAPCO it will establish the Agri First Co Ltd to manufacture and distribute fertilisers in Myanmar.
BMM will contribute a 60-per-cent share while MAPCO acquires the remaining stake. Myanmar’s climate and water resources are suitable for a double-crop season, which would require more advanced techniques.
Myanmar’s fertiliser demand is just over one million tonnes a year with the new factory due to have an annual production capacity of 100,000 tonnes. It aims to commence production in May 2017.
Agri First hopes to combine Behn Meyer’s expertise and experience in fertiliser manufacturing, MAPCO’s distribution network and Mitsui’s financing, logistics, procurement and marketing capabilities.
Source: Eleven Myanmar
