Bus manufacturer SC Auto announced yesterday it is setting up a $30 million facility in Yangon, Myanmar, with support from International Enterprise (IE) Singapore, as it seeks further growth for its business.
The 16,000 sq m facility, slated to begin production in the fourth quarter of next year, will enable SC Auto to increase its production by four times, allowing it to meet the growing demands of both Myanmar and the region, the company said in a statement yesterday.
The announcement comes on the back of the 6th Singapore-Myanmar Joint Ministerial Working Committee meeting held last Thursday in Singapore. It marks SC Auto's first foray overseas after focusing its operations in Singapore for over 20 years, making it the first foreign bus manufacturer in Myanmar.
"Having built a strong foothold in Singapore, we needed to look overseas to continue to grow our business," said Mr Tan Siow Chua, chairman of SC Auto.
"With its demand for public transport, proximity to emerging South-east Asian countries, as well as availability of land and relatively lower labour costs, Myanmar is the ideal location for our first venture overseas."
The company, which has strong operations in Singapore, has already been exporting buses to Myanmar. The new in-market manufacturing facility will allow it to be closer to its customers and respond more quickly to their requirements, the company said.
It aims to produce over 100 buses in its first year in Myanmar and double its revenue.
SC Auto will also invest in robotic welding for this facility, yielding greater efficiency in the production process.