Japan’s Tohno Precision to build molding factory in Myanmar
YANGON, NNA – Japanese plastic parts and molding gear maker Tohno Precision Co. is building a plant in Myanmar, becoming the first such foreign manufacturer in the Thilawa Special Economic Zone on the outskirts of Yangon.
The company established a wholly owned subsidiary, Tohno Precision Myanmar Co., last November with a capital of $1.5 million. A ground-breaking ceremony was held on Thursday and construction is scheduled for completion in November.
The firm based in Tono, northeastern Japan, produces parts for optical equipment, autos and electrical products.
In Myanmar, the local unit will cater to parts demand for companies in the SEZ, Tohno executives said. Manufacturers in the emerging Southeast Asian economy need to import most parts and materials from countries such as China and Thailand.
The number of firms operating in the SEZ stood at 62 as of January, of which 52 are from Japan, according to the Japan External Trade Organization, citing data from Myanmar Japan Thilawa Development Ltd.
Tohno’s subsidiary will install 10 plastic molding machines at the 2,500-square-meter factory and initially employ about 30 people, with plans to expand the workforce to 150, the executives said. It intends to ship products to countries including China, the Philippines, Thailand and Vietnam.
Tohno aims to boost the proportion of overseas sales from almost zero to 30 percent to 40 percent of the total in three years as the Myanmar unit, currently the company’s only overseas operation, expands business, Kikuo Fujii, managing director of the subsidiary, told NNA.