Tuesday, 15 November 2016
KUALA LUMPUR: Daibochi Plastic and Packaging Industry Bhd will invest US$6.8mil (RM29mil) for a controlling stake in a new joint venture company to tap into the flourishing consumer packaging market in Myanmar.
The flexible packaging manufacturer entered into a Memorandum of Agreement (MoA) with Myanmar Smart Pack Industrial Company Ltd (MSP) to set up its first overseas manufacturing facility in Myanmar, under the JV company, Daibochi Packaging (Myanmar) Co Ltd (DPM).
The JV company, in which Daibochi will have a 60% stake, will take over MSP’s existing business, equipment and premises in Yangon, Myanmar.
MSP will hold the remaining 40% stake after injecting its entire assets into DPM.
DPM is expected to post over US$8mil in revenue during its first year of operations.
While Daibochi is mainly involved in flexible packaging for the food and beverage and FMCG sectors, MSP’s current business is primarily in the home personal care products segment and supplies to the local market in Myanmar.
Source by: Internet