Dec 10, 2015

Hitachi, Soe Electric Form $45-Million JV

Local transformer maker Soe Electric & Machinery (SEM) have formed a joint venture with Japan’s Hitachi Company to produce transformers for the domestic market, with a plan to start exporting to ASEAN countries in the near future.

The companies will inject $45 million in the new company, Hitachi Soe Electric & Machinery (HSEM), which will produce and distribute the transformers.

Hitachi will hold a 51 percent stake in HSEM, while SEM will hold the rest.

U Kyaw Min Tun, chairman of Soe Electric & Machinery (SEM), said, “Our main objective is to help develop Myanmar’s electric power sector. We can also start earning foreign currency by exporting transformers to neighbouring countries.

“At the same time, we want young Myanmar engineers to work safely with international standards in their own country and build their technical skills.”

Hitachi has been involved with Soe Electric & Machinery to produce transformers but the official partnership didn’t happen until July this year.

SEM, which was established in 1993, currently has 400 employees, producing about 300 units of transformers every year.

HSEM said the firm will not only produce transformers but also provide maintenance services to clients. It said it plans to get loans from donor organisations like ADB next year to expand its operations.

Source: Myanmar Business Today