PEB Steel extends its regional reach to Myanmar with a $25 million investment in the latest steel manufacturing facility, capitalizing on the country’s booming construction industry.
The facility, located in the Thilawa Special Economic Zone, has a total fabrication capacity of 30,000 tonnes per year. Measuring more than 30,000 square meters in size, the facility will fabricate pre-engineered steel buildings and heavy steel structures to serve the high demand for industrial construction.
The flow of foreign direct investment (FDI) into Myanmar has been on the rise since the US and Myanmar normalized diplomatic ties in 2012. This has fueled increased spending on industrial developments including factories and other buildings.
“We see a lot of demand from the local market because most of the steel is imported from China. The new factory gives PEB Steel an edge to supply high-quality steel to foreign investors in Myanmar with competitive prices and faster delivery,” said Sami Kteily, executive chairman of PEB Steel.
He is upbeat on the outlook of the new investment as “Myanmar is comparable to Vietnam’s status 20 years ago, with a gradual opening up of the government and an abundance of low-cost labor. PEB Steel has secured a firm presence in Vietnam over the past 23 years so we are inspired to replicate this success in Myanmar.”
PEB Steel has a strong track record of delivering high quality, iconic developments across the region, including the tallest tower Fatty Acid in Indonesia with a height of 68 meters, the widest 128 meters clear span Lufthansa Hangar in the Philippines, and the longest building FCB Warehouse in Thailand with one kilometer in total length. In the future, PEB Steel aims to set up a new benchmark for its first Myanmar factory.
To differentiate itself from the crowd, PEB Steel has installed state-of-the-art technology in the factory including an improved Ridge Ventilator 5.0 system, PEBFoamTM for high-performance thermal insulation, and PEBHybridTM for Rafter and Mezzanine Joists. All of the greatest technological innovations will not only expand production capacity but also promote an eco-friendly manufacturing process.
To differentiate itself from the crowd, PEB Steel new factory was built using the revolutionary PEB HybridTM for rafters and mezzanine joists, new ventilation and insulation systems, and an eco-friendly painting line that guarantees that the building will achieve LEED certification. The factory is truly state-of-the-art and includes machinery like cut to length and slitting lines that you do not usually find in steel building factories.
PEB Steel eyes to align the Myanmar factory with other facilities in the region to lower production costs while tailoring products to customer needs. The latest investment marks a greater penetration into Myanmar and Southeast Asia for the company.
As part of the group’s broad strategy to extend its regional footprint, PEB Steel opened a representative office in Myanmar in 2008. After nine years of operation, the company broke ground on its first factory in Myanmar in 2016.
PEB Steel sees that Myanmar has ample potential for long-term investments as the manufacturing sector is expanding at a solid pace. The country is poised to see huge public investments in new transport infrastructure in the coming years. The government will stimulate infrastructure upgrades under the national transport master plan, which will boost demand for quality steel.
Meanwhile, Myanmar is modernizing the financial system and information technology infrastructure in the face of its rapid economic growth. The government has offered plenty of incentives and streamlined the procedures to woo foreign investors. Driven by all the positives on offer, PEB Steel will continue its efforts to contribute to the country’s growing economy.
Kteily stressed that PEB Steel’s maxim is to create win-win solutions for everyone involved so the firm strives to deepen its partnership with all stakeholders in Myanmar. Leveraging its extensive experience garnered through iconic developments in Vietnam and the region, PEB Steel is committed to sharing know-how and best practices with partners and local government.