SORKON Establishes JV Worth ฿60m to Expand Processed Meat Market in Myanmar

S.Khonkaen Foods Public Company (SORKON) has approved the investment of the joint-venture in Yangon, Myanmar with a total value of THB15 million which SORKON holds 60% of the total share. The new established joint venture name is S. Khonkaen Foods (Myanmar) Company Limited which the company has registered with THB25 million (USD 800,000) paid-up capital in an amount of  800,000 shares with a par value of USD1.00/share.

According to the investment. SORKON and Mr. Kich Aungvitulsatit, Chairman of Thai-Myanmar Business Council (TMBC) and Founder of Myanmar-Thai Chamber of Commerce and industry (MTCCI) foresaw great potentiality in the rapid growth of the processed meat market in Myanmar. Therefore this joint venture is formed for the purpose of investing in construction, renovation of a factory building as well as purchase and installations of related machineries and equipment for the purpose of producing Eastern products.

Khonkaen Foods (Myanmar) Company Limited, still under incorporating process and a subsidiary of S. Khonkaen Foods Public Company Limited, would agree to a lease of land in Shwe Paukkan industrial Estate in Yangon, Myanmar with the size about 1000 square meters on a total lease term of 10 years. The factory and its office building will be constructed for the production of processed meat products to be distributed within Myanmar. The project value is THB60 million which comprises of investment form SORKON and Mr. Kich Aunfvitulsatit’s group as well as loans. Additionally, the source of capital for this investment came from the cash flow of SORKON businesses.

SORKON aimed to create another market and source of income for long-term business growth. Moreover, SORKON expects S. Khonkaen Foods (Myanmar) Company Limited to be profitable which would eventually yield in dividends income to SORKON as well as the expansion of its current market and diversifying income and any risks from the domestic market.