Iwatani is going to advance into the Myanmar market as the first industrial gas manufacturer of foreign investment to engage in not only the production of air separation gases and gas-related equipment in the local industrial complex of Japanese management on the outskirts of Yangon, but also the LP gas distribution business. Establishing a 100%-owned local company to be incorporated in August this year, Iwatani will make preparations to start its business operation in March 2018.

In Myanmar which lies on the west side of Indochinese Peninsula and is bordered by Thailand, China and Bangladesh, democratization has been accelerated since the birth of the current Thein Seign Government in March 2011 and the country attained an actual GDP growth-rate of 7.5% in 2013. With a population of more than 50 million, an expansive land, high quality and inexpensive human resources and the abundant natural resources, the country is now drawing keen attention as the last frontier of Asia.

With the recent trend of Japanese companies to enter the market, the development of the Thilawa Special Economic Zone has already begun in collaboration with Japanese trade houses located 20km southeast of Yangon of capital city. Myanmar is so enthusiastic to invite overseas investments that President Thein Sein and Kan Zaw (Minister of National Planning and Economic Development) directly requested Akiji Makino chairman of Iwatani for entry in the field of industrial gas business in Myanmar, when the delegation of Kansai Economic Federation paid a visit to the Myanmar Government from February 15 to 21 of this year. That request of the Myanmar government made Iwatani decide the plan.

Iwatani is making preparations for the local industrial gas business, having concluded an agreement to procure a land of 25,000 square meter inside the Thilawa Special Economic Zone. Participation in the industrial complex is planned now by the food, beverage, automobile, construction and logistic industries. Practically, Iwatani plans to engage first in selling of welding equipment and materials or boilers as well as supplying of LPG. Depending upon the sizes of plants planned for participation in the complex, Iwatani intends to invest step by step for construction of filling stations and air separation gas plants.

According to Iwatani’s Public Relations Department, the issue of concern over infrastructures there such as electricity is being eliminated now, and from now on there will be more industries to enter the country. Although the scale of air separation plant is not known yet because the demand of gas varies depending upon the contents of business to be done there, the company is aiming at a comprehensive supply of gas, equipment/material and energy which relate to manufacturing. Setting an ultimate investment amount at 1.5 to 2 billion JPY foreseeing as far as the installation of ASU, Iwatani plans one billion JPY as a target at the stage of 2020.