- Partners local flexible packaging player to target high-growth opportunities in domestic and regional markets
- Low manufacturing costs and access to Myanmar’s large labour force to enhance Group’s competitive edge
- To invest USD6.8 million for 60% stake in joint venture
Kuala Lumpur, Malaysia, 14 November 2016 – Leading flexible packaging manufacturer Daibochi Plastic and Packaging Industry Berhad (Daibochi; 耐慕志; Bloomberg: DPP:MK; Reuters: DPPM.KL) has set its sights on Myanmar as its first overseas production facility, paving the way for Daibochi’s regional expansion to tap into the burgeoning consumer packaging market in Southeast Asia.
Daibochi, through its wholly-owned subsidiary Daibochi Flexibles Sdn Bhd, entered into a Memorandum of Agreement (MOA) with flexible packaging manufacturer Myanmar Smart Pack Industrial Company Limited (MSP) to set up a joint venture company, namely Daibochi Packaging (Myanmar) Co. Ltd. (DPM), to formalize the collaboration.
At the signing ceremony today, Daibochi Managing Director Thomas Lim underscored the Group’s optimism of DPM’s growth prospects in Myanmar, noting the country’s developing flexible packaging industry amidst a population of more than 50 million.
Mr. Thomas Lim (林树坤), Managing Director of Daibochi Plastic and Packaging Industry Berhad said:
“While Daibochi has established a formidable track record in supplying high quality flexible packaging to leading consumer brands across the Asia Pacific region, we would continue to strive for sustainable growth through penetrating new markets.
We believe that Myanmar is poised to witness a high growth trajectory, propelled by the increasing economic development and anticipated influx of global brands of fast moving consumer goods and food and beverage as the country opens up.
The significantly lower manufacturing costs in Myanmar also enable us to enhance our competitive advantage in the export market.
Through our collaboration with MSP, we stand to be among the first movers in the industry. We are set to make substantial investments to grow DPM into a major consumer packaging player not only in Myanmar but also among ASEAN countries.”
Read the full press release here.
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