Author: Chiu, Li-yen │ Photo: Chen, Chih-chun

Source:The 368th Periodical of Global Views Monthly (February 2017)

Located on the southeast peninsula, Myanmar is a country with more than half year of monsoon seasons ranging from April to September. Despite a deep aspiration for local economic development and emerging construction projects, little can be done in the monsoon season where torrential rain pours down endlessly.

After visiting the factory with half construction progress yet to be completed, General Manager Li, Jian-cheng of CT Overseas Business Department started sharing with us the difficulties that he has encountered when first establishing the new factory in Myanmar.

On March 10, 2016, CT steel structural factory project in Myanmar was formally commenced. However, due to the monsoon season, some civil engineering projects were largely delayed. Fortunately, the steel structural construction projects were not affected by the monsoon season at all.

"The good thing is that we have already received two large orders", General Manager Li explained. It was rather fortunate for the company to receive new cases despite the fact that the new factory was still under construction, indicating a great customer demand in the steel beam and steel column that were indispensable in the infrastructure projects of Myanmar.

Headquartered in Guanyin District of Taoyuan City, CT has a glorious company history in the past. Once assisted with the construction of the first 8-inch semiconductor fabrication plant in Taiwan, CT has also assisted with the construction of the 3rd factory of Hsinchu Industrial Park for Taiwan Semiconductor Manufacturing Company (TSMC) and the first LCD plant for Acer Display Technology Incorporation (predecessor to AU Optronics Corporation). In addition, CT has also helped with the construction of a new factory on the Subic Bay of the Philipines for Acer Incorporation.

CT Decides to Follow in the Southward Policy

Being the only steel structural company listed on Taiwan Stock Exchange (TWSE), CT has foreseen the business operational predicament of Taiwan 2~3 years ago. With multiple factors such as subsequent completion of public works, reduced government procurement in new construction projects, and adverse impact on the real estate under overall political environment, CT Chairman has realized that his steel structural company (as a part of construction industry) would soon be faced with the same predicament. Under this condition, Chairman Lai explained, "We decided to follow in the Southward Policy."

Myanmar - A Final Result After Business Strategic Analysis

Chairman Lai pointed out that among the ASEAN countries, steel structural markets in Thailand, Indonesia, and Vietnam have long been saturated. In addition, China Steel's subsidiary company China Steel Structure Company has also invested in a new factory in Cambodia. Since Myanmar is a complete undeveloped virgin land full of unlimited potential, CT finally decided to make its investment in Myanmar in the early stage of economic reformation. Together with Hsin Kuang Steel Corporation and Sino-American Electronics Corporation, CT has invested a total of US$20million and was transformed into the third largest Taiwanese Business in Myanmar.

"Steel structure industry must always be ahead of all other infrastructure", Chairman Lai emphasized. Steel structure should always be well-prepared before the formal commencement of airport, bridge, railway and building. "You should never wait until everyone has made their investment to build a steel structural factory," Chairman Lai explained, "otherwise, you're losing your business opportunities."             

Since factory location is also a vital factor, Chairman Lai has chosen Thilawa Special Economic Zone with only 40 kilometers away from Yangon City. Under the management of Japanese company, strict discipline and complete procedure were carried out to prevent common troubles of a developing country.