Toyo Ink SC Holdings Co Ltd, the parent company of the Toyo Ink Group of Japan, is to make a full-fledged foray into the Myanmar market with the establishment of a production base in the Thilawa Special Economic Zone in Yangon.
The company plans to set up in July 2018 a wholly-owned manufacturing subsidiary, Toyo Ink Myanmar Co Ltd, with an initial paid-in capital of US$6.M.
The new factory is scheduled to break ground in November 2018 with commercial operation expected to begin in November 2019.
In line with its strategic focus on strengthening its market competitiveness and boosting business development in the region, the Toyo Ink Group had been eyeing expansion in Myanmar while supplying the nation with exports via neighboring countries.
In recent years, the government's aggressive policies to attract foreign funding, such as infrastructure enhancements and the relaxation of import restrictions, have substantially strengthened Myanmar's investment climate, making it an attractive investment destination.
“Myanmar presents a huge potential for the Toyo Ink Group,” said Katsumi Kitagawa, Group CEO of Toyo Ink Group.
“As the first major ink manufacturer to set up a production foothold in Myanmar, we look forward to establishing an early leadership position in markets where we can play to our strengths like food packaging and commercial printing.
“By bringing our manufacturing expertise, cutting-edge technology and support functions to the local market, we aim to make a positive impact on regional development and on enhancing the quality of life of the Myanmar people.”
Initially, the new subsidiary will be engaged in the production of liquid inks for packaging, adhesives for films, and offset inks for the commercial printing market.
While monitoring market and regulatory trends, the company plans to expand production capacity and product offerings in Myanmar.
The Toyo Ink Group has expanded its business to a wide array of global markets like panel displays, electronics, food packaging and medical adhesives, all of which rely on its core materials of inks, polymers and colourants.