Mitsubishi Corp will set up a joint venture in Myanmar to promote sales of Bridgestone tyres into the southeast Asian country, the Japanese firm said on 8 July.
Mitsubishi and Myanmar Motors have agreed on a 70:30 joint venture called First Japan Tyre Services (FJTS) that will provide sales support for Bridgestone tyres in Myanmar, the company said in a statement.
Myanmar Motors is a subsidiary of Yoma Strategic Holdings and First Myanmar Investment Co – which are part of the Serge Pun & Associates (Myanmar) group of companies (SPA Group).
Tyres for the automotive industry are the main downstream sector for butadiene (BD) and its derivative synthetic rubbers.
In October last year, Mitsubishi signed a business alliance memorandum of understanding with SPA Group to jointly explore business opportunities in Myanmar, including automotive service and elevator-related businesses, the company said.
The company’s decision to enter the tyre business in Myanmar “is also based on the projection that demand for tyres will grow in keeping with growth in the automotive market and that its business endeavors will contribute to the improvement of infrastructure”, the company said.
To date, Mitsubishi Corp and SPA Group have entered into agreements to jointly distribute and operate service centres for Mitsubishi Motors, distribute Mitsubishi Electric lifts and elevators and, together with Japanese aviation services firm JALUX, jointly operate the Mandalay International Airport in Myanmar.
Mitsubishi Corp and Bridgestone have a series of tyre production and sales joint ventures in southeast Asia, particularly in Thailand, Vietnam and Malaysia, according to the Japanese firm.
“Mitsubishi Corp will continue its pursuit to meet the needs of consumers in emerging markets by partnering with leading Japanese and other global enterprises to take advantage of the business opportunities that accompany economic development and the growth in demand for consumer goods, particularly in emerging countries in Asia,” the company said.