Hitachi Industrial Equipment Systems Co Ltd (HIES), a subsidiary of Japanese conglomerate Hitachi, will partner with Soe Electric and Machinery Co Ltd (SEM) to produce electrical transformers in Myanmar for distribution in the local and regional markets.
The two entities signed an agreement to go into a joint venture by the name of Hitachi Soe Electric & Machinery Co. Ltd (Hitachi SEM).
“We have agreed to jointly operate to produce transformers and accessories with the aim of contributing to ensure stable and sufficient power supply in Myanmar. We plan to start our operation in March 2016,” said Masakazu Aoki, president of HIES, said at the signing event.
Hitachi SEM will combine SEM’s local business prowess and HIES’s technological expertise to produce transformers which will be marketed not only locally but in the regional ASEAN market.
“We will have to compete with the ASEAN rivals in the near future and we are disadvantaged technologically. Now the partnership of Hitachi and SEM will focus on technology transfer. Japanese experts, technicians and engineers will share their expertise through training,” said U Kyaw Min Tun, managing director of SEM.
HIES and SEM collaborated before in 2012 to produce HIES’s high capacity Amorphous Transformers. SEM will own a 49 percent stake of the $45 million joint venture Hitachi SEM.
Source: Myanmar Business Today