MYANMAR: Yoma Strategic and Mitsubishi Corporation enter tire business in Myanmar

Yoma said on Tuesday (8 July 2014) that its 70 %-owned subsidiary Myanmar Motors has entered into an agreement with Mitsubishi Corporation relating to their joint venture company, First Japan Tire Services Company Limited (FJTS), providing sales support for Bridgestone tyres in Myanmar.

Mitsubishi Corporation will hold 70 % of FJTS shares while 30 % will be held by Myanmar Motors.

Apart from Yoma's 70 % stake in Myanmar Motors, the remaining 30 % is owned by First Myanmar Investment (FMI), a Yoma affiliate, which is part of the Serge Pun & Associates (Myanmar) enlarged group of companies (SPA Group).

Last October, Mitsubishi Corporation and SPA Group signed a Business Alliance Memorandum of Understanding to jointly explore business opportunities in Myanmar, including automotive service and elevator-related businesses.

Said Yoma in its statement: "The new venture will draw on the know-how that Mitsubishi Corporation has accumulated in the industry to provide sales and marketing support to SPA Group's distributors that meets the needs of the local market and, in so doing, expand the sales of high-quality Bridgestone tires - mainly for passenger cars, trucks and buses - in Myanmar."

Source: Yoma Strategic Holdings website, Singapore; 8 July 2014
(Syed Rashid Ali, Karachi, Pakistan)