The FINANCIAL — Nissan Motor Co., Ltd. on February 17 announced that it will begin assembling new cars for the first time in Myanmar this year, in partnership with Tan Chong Motor Group. Plans for a new manufacturing facility in the country’s Bago region are progressing well.
Nissan will initially use an existing Tan Chong facility to assemble the Sunny compact sedan, before transferring production to the new plant with a work force of approximately 300 and a production capacity of 10,000 units at full production.
At a ceremony in Bago today, Nissan and Tan Chong executives joined Bago government officials to sign a land lease agreement with representatives of the country’s Bago Region.
“Nissan is pleased to have the opportunity to be part of new motoring growth in Myanmar,” said Toru Hasegawa, corporate vice president of Nissan Motor Co., Ltd. and president of Nissan Motor Asia Pacific (NMAP). “With today’s announcement, we are on the path to expanding our business in Myanmar through the construction of a plant, and bringing investment and employment opportunities to the local community. We are eager to develop a long and productive relationship with the people of Myanmar.”
To prepare for assembly, 200 employees are being trained at the Tan Chong plant in Malaysia as part of a knowledge-transfer initiative that will provide the local workforce with the necessary skills. Nissan and Tan Chong will also work to enhance and expand the entire business network, which currently includes a branch office and dealers in Yangon, according to Nissan.
Nissan’s expansion in Myanmar forms part of the company’s wider growth in emerging markets, which includes production in countries including India, Brazil, Russia and Nigeria.
Demand in Myanmar is expected to grow rapidly following economic and political reforms in the country.
Nissan started vehicles sales in Myanmar in 2013, with the current product lineup including the X-Trail sports utility vehicle, Altima sedan, Navara pickup truck, NV350 Urvan van and Civilian minibus. Local production will add the Sunny to the lineup.