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XMH hopes to enter Myanmar through JV with local partner
XMH Holdings Ltd, a diesel engine, propulsion and power generating solution provider in the marine and industrial sectors, is hoping to make inroads into Myanmar through a joint venture.
The joint venture company, formed with Myanmar MarcoPolo Co Ltd (MMP), will manufacture, assemble and sell generator sets and related products in Myanmar, as well as provide after sales and maintenance services for these products. XMH will manage its operations, provide the know-how and expertise, while MMP will identify business opportunities in Myanmar.
MMP is a company newly incorporated in Myanmar to distribute generator sets and related power solution products. MMP is owned by a third party individual unrelated to any of XMH's directors or controlling shareholder, said XMH.
The joint venture, in which XMH will hold 70 per cent through its wholly owned subsidiary, XMH Engineering Pte Ltd, will allow the group to expand its existing core businesses by tapping onto the existing business network of its partner, said XMH in an exchange filing. "This will in turn allow the group further increase its business activities and operations and raise its profile in the Myanmar market."
The group has entered into a non-binding memorandum of understanding with MMP to grant each other an exclusive right to negotiate the proposed transactions. The investment cost of the proposed joint venture will be determined at a later date.