Myanmar Potential in Manufacturing, Trade and … · Myanmar Potential in Manufacturing, Trade and...
Transcript of Myanmar Potential in Manufacturing, Trade and … · Myanmar Potential in Manufacturing, Trade and...
Myanmar Potential in Manufacturing, Trade and Services
September28, 2016
Hiroyuki Isono Director of the Board, Executive Officer
Oji Holdings Corporation
Venue: The 12th Joint Meeting of the Japan-Myanmar CCI Business Cooperation Committees
Contents
1. Introduction of Oji Group 3-4
2. Expansion of Oji Group’s Southeast Asia Business
5
3. Background of Market Entry into Myanmar
6-7
4. Business Development in Myanmar
(1)Packaging Business 8-9
(2)Consumer Products Business 10
(3)Water Environment Business 11
(4)Lumber Processing Business 12
5. Future Business Possibilities 13
3
Overview of Oji Group (as of March 31, 2016)
Start of Business : February 12, 1873
Sales Revenue : ¥ 1.4336 trillion
Overseas Sales Ratio : 27.8 %
Operating Income : ¥73.7 billion
Number of consolidated employees
: 33,605 (Domestic: 16,845, Overseas: 16,760)
Introduction of Oji Group (1)
● Containerboard/corrugated containers
● Boxboard/packaging materials
● Folding cartons /paper bags
● Household paper/disposable diaper
● Thermal paper
● Adhesive products
● Film
● Lumber/forest plantation
● Pulp
● Energy
Printing & Communications Media
● Newsprint
● Printing/publication paper
● Communication Paper
Forest Resources & Environmental Marketing
Functional Materials
Household & Industrial Materials
Management Strategies ~FY2016-18 Group Fundamental Policies~
Creation of Innovative Values
Contribution to Future and the World
Harmony with Nature and Society
Expansion of
Overseas Businesses Concentration/Advancement of
Domestic Businesses
Enhancement of Financial Foundation
●Enhance business foundation of our existing sites
“Beyond the Boundaries”
Targeted Regions
Southeast Asia, Oceania, etc.
Packaging, Household & Consumer Products, Functional Materials, Forest Resources & Environment Marketing
4
●Expand businesses to surrounding regions from our existing sites
Targeted Businesses
●Conduct selection of existing businesses to concentrate on profitable businesses
●Accelerate development of new businesses that utilize existing facilities and accumulated expertise
●Promote development and early commercialization of new materials / products through R&D
●Reduce interest-bearing debts in preparation for rising interest rates
●Promote sales of idle assets such as real estates
Management Philosophy ~Desired Future Image of the Oji Group~
Introduction of Oji Group (2)
Oji Myanmar Packaging 2016 Scheduled start of commercial operation
Oji GS Packaging (Yangon) May 2015 Start of commercial operation
MOS Lumber Products Dec 2015 Start of commercial operation
Oji Asia Packaging (Myanmar Branch) May 2013 Established
Since 2010, Oji Group has been continually pushing forward the “Expansion of Overseas Business”
To expand both geographic markets/business field by linking up with regional headquarter
and each group company
3 Sites in Myanmar
【Map of Business Sites in Southeast Asia 】
5
Expansion Process of the Major Sites
Before FY2009 4 3 1 1
FY2010 3 2
FY2011 6 1 1
FY2012 1 1
FY2013 2 1
FY2014 1 1 2 1
FY2015 2 2 1
FY2016 4 2 1
Total 6 4 3 2 2 1 14 12
Expansion of Oji Group’s Southeast Asia Business
Industrial Materials
Household & Consumer Products
Functional Materials
Forest Resources & Environment Marketing
Regional Headquarters (Branch Office)
※Excludes regional headquarters (branch office)
※Start of commercial operation for plants/factories
MALAYS A
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ETNAM
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THA LAND
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NDONES A
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MYANMAR
CAMBOD
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Among the overseas regions, Southeast Asia has been positioned as the core, with a total of 44 business sites currently
Background of Market Entry into Myanmar (1)
・“Expansion of Overseas Businesses” in Southeast Asia where large growth is forecasted
・Business site link-up within the Southeast Asia region where synergies with existing business are expected
Myanmar’s Environment
・ with large growth potential
- Fifth largest population in ASEAN - Forecasted continuous high economic growth - Large and talented working population
・ Growth to accelerate with the continual development of investment environment
・Borders 5 countries, Link to the world market
Increasing foreign manufacturing companies
due to the development of industrial parks
Calls for infrastructure building/environment
improvement
Natural forest resources
Further improvement of living standards
Oji’s Strategy
Development of Packaging Business (BtoB industry)
Contribute through Water Environment Business
Maximize resources’ value through Lumber Processing Business
Actively developing BtoC industry to prepare for the future
Water Infrastructure
Forest Plantation/
Lumber
Consumer Products/ Functional Materials
Converting
6
] Total
Packaging
CHINA
INDIA
LAOS
THAILAND
Mandalay
Naypyidaw
Yangon Mawlamyine
Dawei
Background of Market Entry into Myanmar (2)
Additionally, consider the expansion of business fields and geographic markets in the future
Packaging Business
To identify huge business chances and to start our business from the Total Packaging Business involving experience / human resources / network
Oji GS Packaging (Yangon)
Oji Myanmar Packaging
MOS Lumber Products
BANGLADESH
MYANMAR
To sell Japan-made high-end products and products with localized specification and price based on Japanese technologies in Yangon where middle and upper income population is large
Consumer Products Business
To smoothen the construction of infrastructure / industrial park / commercial facilities by carrying out technical support – equipment installation – maintenance/management of water infrastructure, utilizing our accumulated technologies
Water Business
To develop lumber processing business by focusing on rich rubber resources in Southern Myanmar and re-utilizing old trees
Lumber Processing Business
7
Business Development in Myanmar (1) Packaging Business
Oji GS Packaging (Yangon) [OGPY]
To enter packaging business of Myanmar by leveraging the experience/ human resources/network gained and accumulated in Southeast Asia
8
Mar 2014 :Established May 2015 :Start of commercial operation
To start business as the First Major Foreign Corrugated Containers Company
Japan’s technology in corrugated containers
Experience/ human resources
accumulated in Southeast Asia
To meet local demands of good quality products and services
Mingaladon Industrial Park
Existing Business
Sites
New Market
New Market
Establishment of OGPY is one example of “Overseas Development Model” in which the acquired company develops new market
GSPP (Acquired in 2010, Malaysia’s containerboard/ corrugated container company)took the lead to work together with local company in setting up OGPY
To push forward this model in the future to develop new market in Myanmar and Southeast Asia region
Exterior view of OGPY Interior view of OGPY
New Market
Oji Myanmar Packaging
Plant in Thilawa Industrial Park (SEZ) is under construction (scheduled completion in 2016)
Provide high-quality products targeted at Japanese and foreign companies which are increasing in Myanmar steadily
Consideration of offering of flexible packaging products targeted at various food manufacturers
Corrugated Containers
Labels
Others
Strengthen/establish the Total Packaging Business by deepening the co-operation within and outside the Group
Adhesive labels Examples of other products Corrugated containers
Business Development in Myanmar (1) Packaging Business
Develop Total Packaging Business while linking up with other countries in the region and fully exerting synergies
Thilawa Industrial Park
Exterior view of Oji Myanmar Packaging
9
Offer adhesive label products by co-operating with Group companies such as Hyper-Region Labels (Acquired in 2016, Malaysia’s Label Printing Company)
Business Development in Myanmar (2) Consumer Products Business
Plan to offer products ranging from Oji’s standard products to high-quality products
To offer and localize high-quality products manufactured using Japan technology in consideration of the future population increase and consumption standard improvement
Household paper products offered in Japan
10
Household Paper
Baby Disposable Diapers
Already strengthening our sales at major supermarkets, convenience stores, retail stores Products are offered in all 32 outlets of the largest supermarket, City Mart
View of a City Mart Store Offer products with specifications/price targeted at Southeast Asia based on Japan Technology (Genki! Pants (Malaysia-made))
Offering of some Japan-made high-end products (Genki! Premium Soft Tape (Japan-made))
Started sales of Oji’s diaper under our global brand, “Genki” from Aug 2016 and are targeting sales expansion
Business Development in Myanmar (3) Water Environment Business
Public drinking water and sewage system is under-developed, and factories/commercial facilities, etc. are installing water discharge equipment themselves
Water environment business, which Oji Group has been expanding/promoting, are also being actively expanded in Myanmar
→ Provide technical support to management company of water treatment (Mingaladon)
→ Provide water discharge equipment and maintenance/management services targeted at factories
in Thilawa Industrial Park, commercial facilities such as apartment and hotel
→ Also, provide various water infrastructure related products in line with each customer’s needs
11
Stability &
Low Price
Research
Design/ Build
Maintenance/ Management
To seek equipment that fulfills the needs and budget requirements by fully exploiting accumulated technology and experience
Offering packaged
services ranging from
Proposal →
Installation →
Management
Award at exhibition
Approaches taken in Myanmar
Chemicals to purify water Media for bio-treatment system
Aeration tank OJI-MEMBRANE
Business Development in Myanmar (4) Lumber Processing Business
MOS Lumber Products
Dec 2014 ・Oji Forest & Product
JV formed by 3 companies
Dec 2015 Start of commercial operation and export of wood laminae to Japan/China
To re-utilize old trees of which latex has been harvested with our unique technology by leveraging the rich rubber resources in Southern Myanmar
・Sumitomo Forestry (Singapore) (Singapore subsidiary of Sumitomo Forestry)
・Moe Mya Chai (Myanmar local furniture manufacturing company)
Efficiently operate and expand business by leveraging each strength
12 To aim for production of processed building materials for housing
First Japanese company to produce wood laminae (furniture materials) in Myanmar
Moe Mya
Chai
Oji Forest & Product
Sumitomo Forestry
(Singapore)
・Production management ・Overseas export including Japan
・Raw materials procurement
・Operation of local plant
Mawlamyaing, Mon State
54%
26%
20%
Future Business Opportunities
13
Going forward, Oji would continue investments in Myanmar to contribute towards the development of its economy and culture
Myanmar’s Development Oji Group’s Growth
Development of industries and manufacturing
Improvement in living standards
Increase in employment opportunities
(1) Develop total packaging business
(2) Develop consumer products/functional materials business
(3) Further expansion of business fields / geographic markets
Expand the business as an infrastructure to support “development of industries and manufacturing”, similar to roads/telecommunication
To support further improvement by meeting the increasing needs for daily necessities and high-quality product
To support improvement in quality of living through creation of employment by Oji’s expansion in terms of business fields and geographic markets