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KUBOTA Opens New Doors in Myanmar

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KUBOTA Opens New Doors in Myanmar 「GLOBAL INDEX」 Expanding the future of food, water and the environment. © Corporate Communication Dept., KUBOTA Corporation March 2015 Expanding the future of food, water and the environment. KUBOTA Opens New Doors in Myanmar Asia’s last frontier – since the 2011 installation of a civil government, Myanmar is often referred to as such among foreign investors. The country captured the international spotlight when its bid for the position of ASEAN chair was approved in 2014, a year that coincidentally marked the 60th anniversary of diplomatic relations between Japan and Myanmar. In fact, the two countries have long enjoyed friendly relations, in which KUBOTA has played no small role. As the country opens up its doors wide to high economic growth, the “second chapter” of KUBOTA’s commitment to betterment of everyday life in Myanmar has begun. ▲ Overlooking downtown Yangon, the former capital developed during the country’s era of British rule, one can see in the distance the Sule Pagoda (“stupa of the sacred hair,” as it is said to enshrine a strand of the Buddha’s hair). Expanding the future of food, water and the environment. Burmese Heavy Industry Corporation’s Sinde period of time, which hindered economic reading and writing skills to children Farming Machinery Factory, for which KUBOTA to generously offer technical guidance, Continuous Support development to a large extent. Things took who cannot attend regular schools. KUBOTA’s Deep was involved in construction and provided thereby making great contributions to engineering guidance (circa 1969) from Japan a dramatic turn in 2011, however, when U People in Myanmar embrace the Exchange with the development of farming in Myanmar. Thein Sein was elected to his current post Buddhist faith and value spiritual In 1978, KUBOTA received an order to he Republic of the Union of Thanaka wood is Myanmar’s natural Myanmar as President of Myanmar. He has directed fulfillment, and together with a cosmetic. Applied to the face, paste construct a foundry within the factory and Myanmar (formerly known as the country toward liberal democracy high standard of public safety this made from the wood provides supervised the start-to-finish process from Burma) has had a long and turbulent protection from sunburn and gives a he relationship between KUBOTA T and started introducing foreign capital in adds to the significant potential cooling sensation. casting of components to machining and history. Once a vast empire whose power earnest. Thus, Myanmar came to earn its that the country has to offer. and Myanmar runs deep. In assembly. extended all the way to Ayutthaya in reputation as “Asia’s last frontier.” T 1953, one year before the postwar Thailand in the 16th century, the country With the postwar reparations reparations were started, KUBOTA began Then in 1987, KUBOTA delivered was incorporated into British India after There are also other reasons to believe in of 1954, Myanmar’s diplomatic exporting its farm machinery (power pumping equipment capable of irrigating three wars against the British Empire in the future of the country. With a working- relations with Japan were restored tillers) to Myanmar. In the following year, a some 10,000 ha, and offered free supply the 19th century. Many Burmese fought age population (ages 15-64) of nearly and, in fact, Myanmar was the Burmese mission paid a visit to KUBOTA’s of materials and engineering guidance with the Imperial Japanese Army during 70% and approximately one-third of its very first country to which Sakai Plant during their stay in Japan for for rehabilitation of the foundry in 1997. the Pacific War, and the country finally population aged 20 or younger, Myanmar Japan made such reparations postwar reparation talks. The Burmese KUBOTA delivered 25 tractors and 93 became independent from British rule in has an ideal population pyramid. Its for wartime damage. Japan paid government at the time was planning to use tractors in 2013 and 2014, respectively, 1948. The new socialist government closed literacy rate has also topped 90%, thanks US$200 million and offered an the reparations to industrialize the country, as a form of Official Development its doors to the outside world for a long to temple schools where monks teach additional US$50 million in the Many people visit Shwedagon and power tillers were chosen for their sets for irrigation were designated as an item 580 sets of engines for jute field irrigation Assistance (ODA). Having commenced form of economic assistance over a Pagoda every day. project to produce industrial goods locally, to be included among the war reparations in pumps in 1960, and 1,000 sets of irrigation under the postwar reparation framework, The Shwedagon Pagoda (“golden Yangon stupa”) at twilight ten-year period. With those funds, which later evolved into the industrialization 1957. The following year saw the dispatch pumps were ordered in 1961, thus giving the ever-deepening relationship between the local government developed project mentioned previously. of KUBOTA’s pump engineers to begin KUBOTA as much as 90% of the country’s Myanmar and KUBOTA has extended hydropower plants and kicked off an offering after-sales services in Myanmar. pump market on a unit basis. unbroken to this day. industrialization project that involved Having established a good relationship with Since that time, KUBOTA’s pumps have Sinde Foundry (circa 2012) KUBOTA, Mazda, Hino Motors, and the country, in 1955 KUBOTA shipped the chalked up an impressive track record in the As part of the Burmese government’s Matsushita Electric Industrial (now first batch of its pumps there, which met country. Orders came in from the Burmese industrialization project, KUBOTA was Panasonic). Since that time, Japan with such high acceptance that engine pump Agricultural Development Corporation for asked to sign a technological tie-up for manufacturing farm machinery in 1962 has offered continual development Engine pump sets for Burma assistance in the form of yen loans stood at around US$11.0 billion, and Japan (Mukogawa Plant, 1961) and became involved in the construction and grant aid beginning in 1968 and was the largest creditor country with a of a manufacturing plant for engines and 1975, respectively. With the exception of total outstanding balance of approximately pumps, which later became known as a brief suspension of new yen loans due JPY500 billion. In 2012, it was announced the Sinde Farming Machinery Factory. to a military coup, Japan has remained that Japan would implement an arrears Whether it involved the frequent dispatch constantly committed to emergency clearance operation regarding past yen of engineers or acceptance of numerous and humanitarian assistance projects in loans. This was carried out in the following trainees, KUBOTA was always ready Myanmar and, in the wake of the military year, thus paving the way for rehabilitation junta’s dissolution in 2011, Japan’s of the Myanmar economy. Japan still offers economic assistance resumed in full force. both grant and loan aids and technological assistance to the country. At that time, Myanmar’s foreign liabilities The Last Frontier, Now in Motion Republic of the Union of Myanmar Capital: Naypyidaw Area: Approx. 680,000 km2 (approx. 1.8 times larger than Japan) Population: Approx. 51.41 million (September 2014, Ministry of Immigration and Population of Myanmar) Official language: Burmese Religions: Buddhism (90%), Christianity, Islam, others Major industry: Agriculture Nominal GDP: Approx. US$55.3 billion (FY2012/13, IMF) Per capita GDP: US$868 (FY2012/13, IMF) Economic growth: 6.4% (FY2012/13, IMF) Major export partners: Thailand, China, India, Japan, Singapore, and South Korea (FY2012/13, Central Statistical Organization of Myanmar) Major export items: Natural gas, beans, gems (jade), teaks/wood Major import partners: China, Singapore, Japan, Thailand, Malaysia, and South Korea (FY2012/13, Central Statistical Organization of Myanmar) Major import items: Petroleum, machine parts, palm oil, textiles, metal/industrial products Japan’s economic cooperation (FY2012) - Loan aid: JPY198.9 billion*1 - Grant aid: JPY27.73 billion*1 *2 - Technical cooperation: JPY3.799 billion A panoramic view from Sakura Tower, (Ministry of Foreign Affairs of Japan) a Yangon City landmark *1 Exchange of notes basis *2 JICA actual expenditures basis restored to the family of nations with the Billboard showing the Thilawa SEZ Zone Expanding the future of food, water and the environment. Expectations for the A Area. Kubota is listed as one of the signing of the San Francisco Peace Treaty, subcontractors. Myanmar was the first to offer its support. Thilawa Industrial Park In fact, Myanmar was the first country that agreed to accept Japan’s offer for war he Thilawa SEZ covers a total reparations.” development area of 2,400 ha. The T Phase 1 construction work of a We must never forget kindness of the people massive industrial park has already begun The Thilawa Special of this country. in the advanced development area (Zone A Area: approx. 400 ha) for scheduled “After the military administration seized completion in 2015. Penta-Ocean power in 1988, one country after another Construction Co., Ltd. took the order imposed economic sanctions and pulled out for Phase 1 site development work, and Economic Zone: A Model of Myanmar. However, JICA decided to stay KUBOTA was chosen as a subcontractor to continue offering humanitarian aid in to build water intake/supply installations, the fields of health, education, and human a water
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