Japanese steel trader Hanwa to buy 10% stake in Myanmar’s major steel processor
BANGKOK, NNA – Japanese steel trader Hanwa Co. will buy a 10 percent stake in Myanmar’s leading steel processor to capture growing local demand from the construction sector, while providing the local firm with expertise in rebar processing.
A spokesman in Tokyo said Thursday it will inject an undisclosed sum of capital via subsidiary Hanwa Singapore Pte. Ltd. into First Fortune International Co. (FFI), in which Singapore’s steel trader and processor HG Metal Manufacturing Ltd. holds a 51.04 percent share.
FFI has an annual steel processing capacity of 50,000 tons. HG Metal Manufacturing handles 100,000 tons of rebar processing per year, Hanwa said in a statement on Monday.
The Japanese trader intends to combine its expertise with that of the Singapore-listed parent company of the partner to serve clients in Myanmar, the statement said.
In the Southeast Asian country, construction of hotels, housing, commercial complexes and infrastructure is booming, and most structures are designed with reinforced concrete, Hanwa said.
The domestic construction industry needs to overcome delays in such projects as the rainy season lasts for half a year in the country.