Myanmar Junta to Reopen Myungyan Based Steel Mill
Myanmar Now reported that Myanmar’s military council is attempting to resume operations at a steel mill in Mandalay Region after production was suspended by the National League for Democracy government due to heavy debt owed to China concerning the project and mounting losses. Industry ministry has been instructed by coup leader Min Aung Hlaing to restart operations at the mill and work at the steel mill, located in Myingyan, will commence as soon as possible
The Myanmar Economic Corporation, under military control, initially established the steel mill project with the assistance of a EUR 1.1 billion loan from the state-owned China Development Bank. The loan was granted in 2005, when Myanmar was under another military dictatorship headed by the State Peace and Development Council. MEC handed the steel mill over to the Ministry of Industry in 2012 after the project failed to complete even the first phase of project implementation, causing financial losses to accumulate in the years that followed. The mill’s lack of profitability during the five-year period from 2012 to 2017 caused it to lose more than 130 billion kyat (EUR 65 million) in total
In 2017, the NLD formally suspended a total of 24 state-owned industrial projects including the Myingyan steel mill due to sustained heavy losses.