Toyota Starts Plant in Junta-Led Myanmar Making 1 to 2 Cars a Day
TOKYO—
Toyota
TM 0.15%
Motor Corp. said it has begun producing cars at a new plant in Myanmar that had been on hold after the country’s military seized power in a coup last year.
Toyota began assembling one or two cars a day at its plant in Yangon last month, a spokeswoman for the Japanese auto maker said Wednesday. She said Toyota wanted to contribute to the industrial development of Myanmar and the livelihood of local employees and their families.
The car maker’s decision to begin production in Myanmar highlights a divide among foreign companies over whether to withdraw from the country, whose elected government was ousted in February 2021.
As of the beginning of this year, close to two dozen major foreign companies had decided to suspend business operations in Myanmar, including energy giants
Chevron Corp.
and
TotalEnergies SE
and Japanese beer maker Kirin Holdings Co., according to the World Bank. Toyota had previously been included on that list.
Companies suspending operations have cited shareholder pressure and a worsening human-rights situation among other reasons. Some activists have pushed companies to pull out of Myanmar to isolate or bankrupt the military junta, which executed four men, including two well-known democracy advocates, earlier this year.
Others including clothing retailer
H&M Hennes & Mauritz
AB have said they intend to keep doing business in Myanmar. H&M has said it is mindful that many people in Myanmar rely on international companies for their livelihood.
Human Rights Watch, one of the groups monitoring the situation in Myanmar, doesn’t believe all companies must exit the country but believes they should make sure they aren’t doing business with junta-owned conglomerates, said program officer Teppei Kasai.
“If they want to contribute to the development of Myanmar, respect for human rights needs to be at play as well,” Mr. Kasai said.
Toyota spokeswoman Shino Yamada said the car maker’s business in Myanmar—including parts imports, manufacturing and sales—isn’t directly related to state-owned and military-affiliated companies.
Toyota first announced plans to build a $53 million factory in the Thilawa Special Economic Zone in Myanmar’s biggest city, Yangon, in 2019. At the time, it said it planned to produce around 2,500 Hilux pickup trucks each year.
Toyota’s plant was originally scheduled to begin operation in February 2021, the month of the coup. It said it delayed the opening because of the political changes and Covid-19 but now believes the situation in Myanmar is more stable.
Write to River Davis at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
TOKYO—
Toyota
TM 0.15%
Motor Corp. said it has begun producing cars at a new plant in Myanmar that had been on hold after the country’s military seized power in a coup last year.
Toyota began assembling one or two cars a day at its plant in Yangon last month, a spokeswoman for the Japanese auto maker said Wednesday. She said Toyota wanted to contribute to the industrial development of Myanmar and the livelihood of local employees and their families.
The car maker’s decision to begin production in Myanmar highlights a divide among foreign companies over whether to withdraw from the country, whose elected government was ousted in February 2021.
As of the beginning of this year, close to two dozen major foreign companies had decided to suspend business operations in Myanmar, including energy giants
Chevron Corp.
and
TotalEnergies SE
and Japanese beer maker Kirin Holdings Co., according to the World Bank. Toyota had previously been included on that list.
Companies suspending operations have cited shareholder pressure and a worsening human-rights situation among other reasons. Some activists have pushed companies to pull out of Myanmar to isolate or bankrupt the military junta, which executed four men, including two well-known democracy advocates, earlier this year.
Others including clothing retailer
H&M Hennes & Mauritz
AB have said they intend to keep doing business in Myanmar. H&M has said it is mindful that many people in Myanmar rely on international companies for their livelihood.
Human Rights Watch, one of the groups monitoring the situation in Myanmar, doesn’t believe all companies must exit the country but believes they should make sure they aren’t doing business with junta-owned conglomerates, said program officer Teppei Kasai.
“If they want to contribute to the development of Myanmar, respect for human rights needs to be at play as well,” Mr. Kasai said.
Toyota spokeswoman Shino Yamada said the car maker’s business in Myanmar—including parts imports, manufacturing and sales—isn’t directly related to state-owned and military-affiliated companies.
Toyota first announced plans to build a $53 million factory in the Thilawa Special Economic Zone in Myanmar’s biggest city, Yangon, in 2019. At the time, it said it planned to produce around 2,500 Hilux pickup trucks each year.
Toyota’s plant was originally scheduled to begin operation in February 2021, the month of the coup. It said it delayed the opening because of the political changes and Covid-19 but now believes the situation in Myanmar is more stable.
Write to River Davis at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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