Mitsubishi Corporation

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July 8, 2014
Mitsubishi Corporation

Mitsubishi Corporation and Yoma Strategic Enter Tire Business in Myanmar

Mitsubishi Corporation (MC) has entered into an agreement with Myanmar Motors Pte. Ltd. for the purpose of establishing a joint venture company, First Japan Tire Services Company Limited (FJTS), to provide sales support for Bridgestone tires in Myanmar. MC will hold 70% of shares while 30% will be held by Myanmar Motors Pte. Ltd. Myanmar Motors is a subsidiary of Yoma Strategic Holdings Ltd. and First Myanmar Investment Co., Ltd, which are part of the Serge Pun & Associates (Myanmar) Limited enlarged group of companies (SPA Group).
 
MC and SPA Group signed a Business Alliance Memorandum of Understanding in October 2013 to jointly explore business opportunities in Myanmar, including automotive service and elevator-related businesses. To date, MC and SPA Group have entered into agreements to jointly distribute and operate after service centers for Mitsubishi Motors, distribute Mitsubishi Electric lifts and elevators and, together with JALUX, jointly operate the Mandalay International Airport. MC’s decision to enter the tire business in Myanmar is also based on the projection that demand for tires will grow in keeping with growth in the automotive market and that its business endeavors will contribute to the improvement of infrastructure.
 
MC and Bridgestone, the world’s top tire maker by market share, already have a series of tire manufacturing and sales joint ventures in South East Asia, particularly in Thailand, Vietnam and Malaysia. The new venture will draw on the know-how that MC 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.
 
New Strategic Direction, MC’s corporate strategy released in 2013, sets out as part of its long-term growth vision circa 2020 to accelerate global business development by leveraging the shift towards Asian markets, which are gaining greater international presence as consumer markets.
 
MC will continue its pursuit to meet the needs of consumers in emerging markets by partnering with leading Japanese and other global enterprises to take advantage of the business opportunities that accompany economic development and the growth in demand for consumer goods, particularly in emerging countries in Asia.
 
Outline of New Company
Company Name
First Japan Tire Services Company Limited
Business Activities
Tire sales and marketing support
Capital Stock
Approximately700,000 US Dollars
Shareholder
MC 70%, Myanmar Motors Pte. Ltd. 30%
Head Office
Yangon, Myanmar
 
 
Scheme
1Yoma Strategic Holdings Ltd. (YSH)
Head office:           Singapore
Year Established: 1962 (Singapore Exchange Listing in 2006)
Business:              Real estate, agriculture, automotive and luxury tourism
Representative:      Serge Pun, Executive Chairman
※Investment in Elite Matrix is through Yoma Strategic Investments Ltd. which is a 100% subsidiary of YSH.
 
 2First Myanmar Investment Co., Ltd.
Head office:          Myanmar
Year Established: 1992
Business:             Financial, real estate, automotive etc.
Representative:    Serge Pun, Chairman
 
 
3Myanmar Motors Pte. Ltd.
Head office:          Singapore
Year Established: 2013
Business:              Automotive related
Representative:      Michael Rudenmark, Head of Automotive (YSH)
 
Reference
 
1.Bridgestone Corporation
Head office:           1-1, Kyobashi 3-chome, Chuo-ku, Tokyo 104-8340, Japan.
Year Established:  1931
Business:          
BS is the world’s largest tire and rubber company. In addition to tires for use in a wide variety of applications, it also manufactures a broad range of diversified products,
which include industrial rubber and chemical products and sporting goods. Its products are sold in over 150 nations and territories around the world.
Representative:     Masaaki Tsuya (CEO and Representative Board Member, Concurrently Chairman of the Board)
No. of Employees: 145,029 (consolidated as of December 31, 2013)
 
2.Mitsubishi Corporation
 
Head office:             3-1, Marunouchi 2-Chome, Chiyoda-Ku, Tokyo 100-8086, Japan
Year Established:   1954
Business:         
MC is a global integrated business enterprise that develops and operates business across virtually every industry including industrial finance, energy, metals, machinery, chemicals, foods, and environmental business. MC’s current activities are expanding far beyond its traditional trading operations as its diverse business ranges from natural resources development to investment in retail business, infrastructure, financial products and manufacturing of industrial goods.
Representative:      Ken Kobayashi (President and CEO)
No. of Employees:  68,383 (consolidated as of March 31, 2014)

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