Nissan Motor Co Ltd (ADR) (OTCMKTS:NSANY) plans to build a manufacturing plant in Myanmar, the company said on Wednesday in a press release. The proposed facility will be located in the Bago region located north-east of Yangon, and is expected to have an annual production capacity of 10,000 vehicles.

Nissan vice-president Toru Hasegawa said: "Nissan is pleased to have the opportunity to be part of new motoring growth in Myanmar,"

According to 20read, an internet publication, Nissan’s proposed manufacturing unit will employee around 200 people. These potential employees will receive technical training in Malaysia.

The building of Nissan’s manufacturing plant in Myanmar comes after the country's recent opening towards the West, following decades of international isolation. The shifting of power from the military to a semi-civilian government has liberalized the economy, attracting global investors to this country of more than 50 million people.

According to Reuters, the Japanese auto-manufacturer will use its partner Tan Chong Motor Group’s facility for the time being. However, assembling will be shifted once the Nissan's plant is completed. The first locally manufactured Nissan car in Myanmar will be a Sunny.

Nissan has been selling its vehicles in Myanmar since 2013. Its current portfolio includes X-Trail sports utility vehicle, Altima sedan, Navara pickup truck, NV350 Urvan van and Civilian minibus. The company expects vehicle demands to boost after foreign sanctions have been lifted. The automaker sells 104,000 vehicles annually, around 3% of which are brand new. These figures are expected to grow to 150,000 vehicles annually by 2020, according to Reuters.

Other automakers that have recently started operations in Myanmar include Suzuki and Ford. Suzuki launched its production plant in Myanmar last year, where it produces its multipurpose vehicle, Ertiga. On the other hand, Ford operates a showroom in Yangon, the same place that Nissan’s plant will be build.

Although profits remained fair following strong North American and Chinese sales, Nissan’s penetration in Myanmar will likely boost company sales in Southeast Asia. Myanmar’s foreign direct investment stood at $8 billion in 2015, more than five times the flow recorded just two years earlier.

Source: Bidness Etc