» Myanmar Version » Mobile Version
Business News
South Korea’s Daewoo Granted Lease on State-Owned Car Factory, Plans to Start Making Busses Locally
Source : Myanmar Business Today View Count : 3796
Jun 07, 2017

The government has agreed to lease a state-owned factory to a joint venture between South Korean bus-maker Daewoo and local compa­ny Myanmar Trade Centre, paving the way for Daewoo buses to be built locally.
        By letting the factory, which is located in Htauk Kyant in northern Yangon, the government is putting into action its economic plan to see state-owned en­terprises turned over to the private sector, said U Khin Maung Cho, the union minister for industry.
        The joint venture propos­al beat a number of other proposal from automakers to lease the vehicle manu­facturing factory, he said.
        “As the country is devel­oping its public transport, more and more new buses will be needed.
        “The country has no doubt about Daewoo’s bus production capabil­ity. Manufacturing the vehicles in Myanmar will have a great impact for the country because it will re­duce import volumes and with less foreign currency being spent abroad it will help balance the trade defi­cit,” the minister said in a speech at the lease-signing ceremony.
        The factory will manufac­ture Daewoo’s BS-106 city buses, which are already in operation in Yangon, in both compressed natural gas (CNG) and diesel en­gine types, said Dr Kyaw Kyaw Aung, Managing Di­rector of Myanmar Trade Center.
        The CNG model BS-106 will come with a 290 horse­power Euro-4 Emission Standard engine while the diesel variant will feature a 300 horsepower Euro-3 Emission Standard engine.
        In the first phase of the project, the buses body frames will be imported from South Korea and then assembled in Myanmar us­ing locally produced acces­sories while the project’s second phase will see all sections of the buses man­ufactured locally.
        Daewoo will train locals technicians in all stages of manufacturing and main­tenance, train bus drivers and ensure spare parts are available for after sale ser­vice.
        Additionally, Daewoo plans to manufacture the smaller 170 HP Letstar Mini Luxury bus locally if there is suitable demand.

Latest News
More News