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By
Fibre2Fashion
Published
Aug 24, 2016
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Myanmar & South Korea JV to set up 500-acre garment facility

By
Fibre2Fashion
Published
Aug 24, 2016

Myanmar based Olympus Asia Group and South Korea’s Panko Corporation have entered in to an equal joint venture partnership to set up a garment factory on 500 acres of land.



“The joint venture which will be a free-on-board (FOB) garment facility is seeking land for setting up the factory in Yangon, Bago or Ayeywarwady regions,” Myanmar media reported.

Most of Myanmar’s apparel units operate under the cut-make-pack (CMP) model, under which, a financially and technically sound foreign buyer, contracts out work to a garment factory.

However, under the more profitable FOB model, foreign buyers place orders with well-financed garment factories, which also have the technical expertise.

The construction to build the infrastructure will start within a year, with commercial production expected to start three years after that.

The project will include a global standard wastewater treatment plant; dormitories for workers and will also generate its own electricity.

Olympus Asia Group CEO Okkar Zaw Naing said the whole project will create between 40,000 to 60,000 direct and indirect job opportunities.
 

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