The government has agreed to lease a state-owned factory to a joint venture between South Korean bus-maker Daewoo and local company Myanmar Trade Centre, paving the way for Daewoo buses to be built locally.
By letting the factory, which is located in Htauk Kyant in northern Yangon, the government is putting into action its economic plan to see state-owned enterprises turned over to the private sector, said U Khin Maung Cho, the union minister for industry.
The joint venture proposal beat a number of other proposal from automakers to lease the vehicle manufacturing factory, he said.
“As the country is developing its public transport, more and more new buses will be needed.
“The country has no doubt about Daewoo’s bus production capability. Manufacturing the vehicles in Myanmar will have a great impact for the country because it will reduce import volumes and with less foreign currency being spent abroad it will help balance the trade deficit,” the minister said in a speech at the lease-signing ceremony.
The factory will manufacture Daewoo’s BS-106 city buses, which are already in operation in Yangon, in both compressed natural gas (CNG) and diesel engine types, said Dr Kyaw Kyaw Aung, Managing Director of Myanmar Trade Center.
The CNG model BS-106 will come with a 290 horsepower Euro-4 Emission Standard engine while the diesel variant will feature a 300 horsepower Euro-3 Emission Standard engine.
In the first phase of the project, the buses body frames will be imported from South Korea and then assembled in Myanmar using locally produced accessories while the project’s second phase will see all sections of the buses manufactured locally.
Daewoo will train locals technicians in all stages of manufacturing and maintenance, train bus drivers and ensure spare parts are available for after sale service.
Source: Myanmar Business Today
