YANGON -- Yusen Logistics formally broke ground Tuesday on a large refrigerated warehouse for imported foods and precision parts on the outskirts of Yangon, Myanmar's largest city.
The Japanese company will invest some $7 million in the 6,200-sq.-meter facility inside the Thilawa Special Economic Zone. The cold-storage functionality is a rarity in the Southeast Asian nation. The warehouse is slated to begin operations next July and will store products in three temperature zones: 15 C to 20 C, 5 C, and minus 20 C.
"There are great business opportunities in Myanmar, which has high potential as both a production base and a market," said Shoji Murakami, senior managing executive officer at Yusen Logistics.
In recent years, Myanmar has attracted foreign companies interested in its fast-growing consumer market. But a lack of cold-storage logistics infrastructure has posed significant problems for such items as perishable foods. And very few warehouses here can store precision parts, for which temperature management is critical.