Japanese steelmaker JFE Steel Corporation has announced that it has signed an agreement with Singapore-based Meranti Steel Pte. Ltd. (Meranti), JFE Shoji Trade Corporation (JFE Shoji), the trading division of JFE Holdings, Japanese steelmaker Marubeni-Itochu Steel Inc. (MISI), and Japan-based trading company Hanwa Co., Ltd. (Hanwa) to form a joint venture (JV) to produce and sell hot dip galvanized and colored flat steel products for the building and construction sector in Myanmar.
Accordingly, the five companies will establish a manufacturing and sales company, JFE Meranti Myanmar Co., Ltd., in Myanmar through a Singapore-based holding company, JFE Meranti Myanmar Holding Pte. Ltd. The joint venture will begin constructing a plant after obtaining approval from the relevant authorities, aiming to launch operations in 2020. Total investment in the project will be approximately $85 million.
According JFE Steel’s statement, since democratization of Myanmar in 2011, economic development has progressed dramatically. Demand is rapidly expanding for flat steel products for building and construction, such as roofs, walls and structures. Currently, most of these steel materials have to be imported, but the need is expected to rise for locally produced high-quality products supported with technical services and short lead times.