Mitsubishi Corp (MC) has struck a deal with First Myanmar Investment Co Ltd (FMI) and Yoma Strategic Investments Ltd (YSI) to venture into elevator business in Myanmar in a bid to tap the country’s booming housing construction market, the Japanese conglomerate said.
The companies established a joint venture company, MC Elevator (Myanmar) Ltd (MC Elevator), where MC will hold 60 percent of shares, with FMI and YSI holding 20 percent each.
Through the new company MC will provide technical services and solutions, installation, testing and commissioning and import and supply of elevators, escalators and related products in Myanmar, Mitsubishi said.
Urban development in Myanmar has gained remarkable momentum in recent years, following the government’s moves towards democratisation.
This has led to increased foreign investment, particularly in the construction and real estate development sectors, where demands for elevators and escalators are projected to also grow.
MC Elevator is scheduled to start operations this summer after it completes setting up the company according to Myanmar procedures.
MC has been applying its trading functions in collaboration with SPA group companies for the distribution of Mitsubishi Electric elevators, escalators and related products in Myanmar since 1998.
Mitsubishi said the aim of establishing MC Elevator is to “further expand this business” by strengthening capabilities for more effective customer support and maintenance services on the ground.
FMI and YSI are part of the enlarged group of one of Myanmar’s leading corporations, Serge Pun & Associates (Myanmar) Ltd (SPA).
Mitsubishi said it will continue collaborating with Mitsubishi Electric in the elevator and escalator business, particularly in developing countries with high growth potential such as Myanmar.