Mar 30, 2015

Japan's Mitsubishi sets up food joint venture with Myanmar firm

Japan's Mitsubishi Corp is to form a joint venture with a Myanmar company that will manufacture and distribute food for domestic and regional markets, the companies said on Monday.

Mitsubishi will team up with Capital Diamond Star Group Ltd. and will acquire as much as 30 percent of the joint venture, called Lluvia Ltd, which plans to invest more than $200 million in "businesses across the food value chain" over the next three years, the companies said.

"Lluvia will leverage Mitsubishi Corporation's international network to expand aggressively in the region and aims to be one of Myanmar's first home-grown regional companies," they said in a statement.

At home, Lluvia aims to develop the food industry's capacity to produce its own products so that the Southeast Asian country does not have to rely on imported goods, the statement said.

Capital Diamond Star declined to say how much Mitsubish was investing in the venture.

The Mitsubishi deal comes amidst a surge of foreign direct investment, which has soared to more than $8 billion this fiscal year, $3 billion more than anticipated, Aung Naing Oo, head of the state-run Myanmar Investment Commission, told Reuters last week.

That follows sweeping political and economic reforms launched by the semi-civilian government that took office in 2011 after 49 years of military rule.

Source: Reuters