Millcon’s plant up and running

Located in Thilawa Special Economic Zone, the plant is currently on a test run, churning out 800-1,000 tonnes of steel a month. 
Its monthly production capacity is about 3,500-4,000 tonnes, or roughly 40,000-50,000 tonnes a year. 
The plant was completed recently - slightly over two years after the investment plan was announced, following an initial three years of feasibility study.
Despite legal and construction-related obstacles, Jiruss Rianchaiwanich, Millcon Steel’s executive vice president, is thankful for his employees’ contribution in relocating to Yangon, as well for that of the local partner, Thiha Group, which owns a 10-per-cent stake in the joint venture – Millcon Thiha GEL. 
The remaining 90 per cent is owned 50:50 by Millcon and its fellow Thai partner in the project, General Engineering.
“Our achievement is attributable to our employees – those stationed in Bangkok and relocated to Myanmar – who shared the goal to get the plant up and running as soon as possible. In this regard, advanced telecommunications technology has assisted the liaison significantly,” Jiruss said in an interview in Bangkok ahead of the grand opening tomorrow.
"Another success factor lies in our partner. We resolved to make the investment as we found a good partner, who helped analyse the market, assist in the construction, advise and help us untangle obstacles,” he added.
Myanmar is the first overseas investment destination for Millcon, a unit of the Leeswadtrakul family which has been in the Thai steel industry for decades. 
Myanmar’s reopening is alluring, as steel demand is expected to skyrocket due to expansion in the manufacturing, construction and infrastructure sectors. 

Long-term potential
Millcon is convinced of Myanmar’s long-term growth prospects, at least in the next five to 10 years, particularly following the birth of the Asean Economic Community (AEC) at the start of this year.
“The AEC offers us an opportunity to tread into neighbouring countries. It [Myanmar] is the first piece in our jigsaw. Often there is a question of how ready Myanmar is for investment, but Millcon thinks readiness should be borne within ourselves, and not by an external factor. If we have the right strategy, the means and the way will follow. We believe in our team and are ready to take obstacles as they come,” the executive vice president said.
Millcon has prepared for the complicated legal environment in relation to investment laws and licensing, and for language differences, labour skills, living conditions, travel within the country, and cultural differences. Its first team in the country consisted of engineers – Thai workers as well as Myanmar nationals who returned home and assisted in communicating with local workers. 
Despite the preparations, however, the company encountered delayed licensing due to insufficient understanding of the Myanmar regulations, he said. Moreover, planning by the local contractor was poor, prompting the company to send in a greater number of Thai workers than it had expected. Along the way, Thiha Group helped plug the loopholes, as well as some Myanmar staff, who helped through their good English communication skills, he explained.
“Indeed, it hasn’t been that much beyond our expectations, particularly concerning rules and regulations as they tend to differ from country to country. But it will take time for Myanmar to improve in other areas, like capacity-building of local workers. 
“We expect our Thai engineers will have to be stationed there for two years after operations commence, before the local team can take over to ensure a smooth production process. Myanmar is lagging in many areas, and we can’t wait till everything is ready,” Jiruss stressed.