Mitsubishi Corporation, Marubeni Corporation and Sumitomo Corporation on Tuesday announced the establishment of a new consortium to develop the Thilawa Special Economic Zone project in Myanmar.

Following a feasibility study undertaken over the past several months, the consortium will be a product of collaboration between the three partners and a public-private partnership comprising the Government of Myanmar and local enterprises. The consortium will focus on developing the "Class A Area", the section of the Thilawa Special Economic Zone designated for initial development.

MMS Thilawa, an equal investment limited liability partnership established by Mitsubishi Corporation, Marubeni Corporation and Sumitomo Corporation in April 2013, will contribute 49% of the capital for the project, while 51% will be provided by the Government of Myanmar and local enterprises to form an entity, tentatively named Myanmar Japan Thilawa Development Ltd. (MJTD).

Located in Yangon, Myanmar, MJTD will acquire rights to 400 hectares of property from the Government of Myanmar, and will proceed to develop a high-quality industrial zone. Property development is expected to be undertaken by Japan's Penta-Ocean Construction Co., Ltd. and a consortium of construction firms from Myanmar. The Thilawa Special Economic Zone is scheduled to commence in 2015.

The Thilawa Special Economic Zone occupies a wide area of 2,400 hectares of land approximately 20 km southwest of the Myanmar capital, Yangon. This is a prime location which boasts an abundant labor population and can utilize existing nearby port facilities.

The three companies believe the project will attract wide interest from Japanese and other foreign companies seeking to invest in Myanmar, and contribute to overall industrialization, increased employment, and economic development in the country.