Car seat fabric maker Tsuyatomo forms JV with Myanmar state-run firm
By Mami Saito
YANGON, NNA - Japanese car seat fabric maker Tsuyatomo Co. has signed a joint venture agreement with a state-backed textile maker in Myanmar to produce fire-resistant and anti-virus materials for motor vehicles and home interiors.
It is the first joint venture between a foreign company and a state-run firm in the Southeast Asian country, according to the Myanmar government.
The local venture plans to start production at a factory in Shwedaung, Bago Region, north of Yangon, as early as the beginning of next year, Tsuyatomo President Yoshihiro Oguri said in a teleconference signing ceremony Friday.
The state firm under the Ministry of Planning, Finance and Industry will provide the factory and manufacturing facilities while Tsuyatomo will invest about 90 million yen ($842,800) to install advanced dyeing machinery and other equipment. The joint venture will be owned 40 percent by the Myanmar partner and 60 percent by Tsuyatomo, he said.
Most of the materials produced under the project will be shipped outside of Myanmar, including Japan.
Tsuyatomo will hire seven Myanmar workers at its headquarters in Ichinomiya, Aichi Prefecture in central Japan, according to the company.
Min Ye Paing Hein, deputy industry minister, said in the teleconference that he hopes investment from Japanese textile companies will increase following Tsuyatomo's investment. (NNA/Kyodo)