Steel companies in Thilawa SEZ expand production

Two steel manufacturing companies in the Thilawa Special Economic Zone near Yangon are ramping up production and set to expand their markets and products.

JFE Meranti Myanmar Co Ltd (JMM) announced last week that it is set to introduce its first locally produced coated-steel products under the brand ALZU this December.

JMM says the products are intended for both local and export markets.

The company is a joint venture between Japanese companies JFE Steel Corp, JFE Shoji Trade Corp, Marubeni-Itochu Steel Inc, and Hanwa Co Ltd, and Singapore-based Meranti Steel Pte Ltd.

JMM. is a US$85 million subsidiary owned by a Singapore-based holding company whose largest stakeholder is Japan-based JFE Steel Corp.

According to JMM, its ALZU brand will provide premium aluminum-zinc alloy-coated and colour-coated steel products. The products are designed and manufactured by JMM in Myanmar for use in roofing, walling, and other related applications for a variety of industrial, commercial, residential, and institutional projects.

“Myanmar’s economy is evolving rapidly and has huge growth potential, but the country needs good infrastructure and building materials to support it,” said JMM CEO Sebastian Langendorf.

“Many new buildings will need to be built, and old ones will need to be renovated or replaced. In order to play a key role in building the Myanmar of the future, JFE MERANTI is introducing ALZU, a durable coated-steel product that is suitable for the Myanmar climate, so developers can create buildings with long-lasting integrity.”

“We believe that leading the way with coated steel in Myanmar will allow the industry to develop into a powerful force for the nation’s development. And we plan to help secure Myanmar’s bright economic and industrial future. For us, for the industry, and for Myanmar, the launch of ALZU is just the beginning,” Langendorf, said.

Following ALZU, JMM plans to begin production of three additional painted and metal coated steel products for launch in 2020. It expects to soon become Myanmar’s largest producer of coated steel, the Company, said.

Meanwhile, Vietnam-based PEB Steel announced that it is discussing potential business opportunities with Singapore Business Federation (SBF) members in Myanmar. Twenty Singaporean companies visited Myanmar to explore opportunities and partnership in the Myanmar business and construction sector.

“We have demonstrated to Singapore businesses that we can be a very professional and highly qualified partner to collaborate with them in their investment in Myanmar”, said PEB Steel Myanmar General Manager Nanda Kumar.

PEB specialises in the design, fabrication, and erection of pre-engineered steel buildings, steel structures for factories, warehouses, showrooms, commercial/trade centres, supermarkets, sports stadiums, and exhibition halls.

Currently, PEB produces steel products for the local market and also exports to ASEAN countries. It produces 25,000 tonnes of steel products a year.

“The Myanmar steel industry’s materials and labour costs are highly competitive compared to its neighbours. The problem is not that their steel is not good enough, but rather an absence of fixed quality standards has allowed sub-standard foreign steel to be imported on a scale that swamps quality domestic production. Therefore, we hope local steel companies can be protected from unfair foreign competition for a thriving domestic steel industry.”

Myanmar relies heavily on steel imports rather than local production as only 5pc of the consumption is produced locally and 95pc is imported according to the Myanmar Iron and Steel Association.

Source: Myanmar Times

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