Preparations underway to build motorcycle tire factories in Myeik and Waw
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Htet Nadi/ Pearl (NP News) - March 26
A rubber entrepreneur told The Statesman that plans are being made to build motorcycle tire factories in Myeik and Waw.
Negotiations are underway, including shareholdings, to build a motorcycle tire manufacturing factory in Myeik, Tanintharyi Region, and Waw, Bago Region, with investment from Chinese entrepreneurs.
“Currently, we are working on building a motorcycle tire factory. It is a low-capital investment. Chinese tire manufacturers are coming here to do business. We are negotiating the shares. We have submitted a proposal and sought permission from Myanmar Investment Commission (MIC). The process is underway. We are preparing to build one in Waw and one in Myeik. We have to choose a place close to the source of raw rubber. In that way, the transportation costs will be low. Now, they are calling for the implementation of a large industrial zone in Mawlamyine, so those places will also be considered,” he said.
Current domestic consumption of raw rubber accounts for only eight percent of production, and once the motorcycle tire factories are completed, they will consume approximately 10,000 tonnes of rubber.
"The domestic consumption of the rubber production is only six to eight percent. That's the use of rubber raw materials, including Mandalay shoes. The two new factories can actually use only 8,000 to 10,000 tonnes per year. Consumption is still low," he said.
The factory will be built between 2026 and 2027, and once completed, it will be able to produce about 20 percent of the domestic motorcycle tire consumption.
He also said that there are still many needs to be improved, including financial regulations and import policies, to attract more investment from other tire companies.
“It is estimated that it will be implemented in the fiscal year 2026-2027. If the two factories are combined, they will be able to meet about 15 percent of the domestic demand. There is a huge demand for motorcycle tires in the country. There are many requirements for big global tire factories to invest in Myanmar. We need to gradually create a situation where they can invest. The main thing is to create a free working environment. We need to be able to import raw materials freely and apply for licenses easily,” he said. –