Factbox: The foreign firms doing business in Myanmar

Shangri-La Asia

09/03/2021 10:31

SINGAPORE, March 9 (Reuters) - A military coup in Myanmar
and a bloody crackdown on protesters has piled pressure on
foreign companies operating in the country. Some firms are
scaling back or even pulling operations while those with ties to
army-linked firms are being urged to cut them.  urn:newsml:reuters.com:*:nL4N2L71AE 
    Following is a snapshot of global firms doing business in
Myanmar.
    
    ENERGY     
    Total SE  TOTF.PA  and Chevron Corp  CVX.N  have a large
offshore gas project in partnership with Myanmar Oil and Gas
Enterprise (MOGE).  urn:newsml:reuters.com:*:nL8N2L50CD
    The United Nation's human rights investigator on Myanmar,
Tom Andrews, said in a report last week that countries should
impose sanctions on MOGE, which is now controlled by the
military and represents its largest source of revenue. 
    A Chevron spokesperson said it will comply with all
applicable laws and sanctions. Total declined comment on the
threat of sanctions.  urn:newsml:reuters.com:*:nL8N2L50CD
    Chevron agreed in 2019 to put a focus on human rights in
Myanmar, under pressure from an activist investor. https://reut.rs/3eiveQX
    
    Woodside Petroleum  WPL.AX  - The Australian gas producer
said last month it was pulling staff from its exploration
efforts amid concerns over violence by security forces.
 urn:newsml:reuters.com:*:nL4N2KX045 
    
    Sembcorp Industries  SCIL.SI  - The Singaporean conglomerate
operates a 225-megawatt power plant in Mandalay. 
    
    INDUSTRIALS    
    Adani - A unit of the Indian firm is developing a port in
Yangon through a lease deal with military conglomerate Myanmar
Economic Corporation (MEC), according to a 2019 United Nations
report.
    The report urged foreign firms to cut business with the
military due to human rights abuses. An Adani spokesman declined
to comment on the allegations that the land is leased from MEC.
    
    POSCO  005490.KS  - An affiliate of the South Korean
steelmaker runs a plant in Myanmar with military conglomerate
Myanmar Economic Holdings Limited (MEHL). A POSCO C&C
 058430.KS  representative said it plans to reconsider the
business if it finds evidence MEHL is involved with the coup.

    CONSUMER    
    Kirin Holdings  2503.T  - The Japanese brewer last month
said it was scrapping a beer alliance with MEHL, over which it
has long faced scrutiny. It has said it wants to stay in
Myanmar, one of its few growth markets.  urn:newsml:reuters.com:*:nL1N2KL0DJ 
    
    Tiger - Protesters have called for a boycott of the
Singapore beer brand, seeking to force a tougher stance from
Singapore, Myanmar's biggest source of foreign investment.
Heineken  HEIN.AS , which owns the brand, has not responded to a
request for comment.
    
    Coca-Cola Co  KO.N  - The soft drinks giant was one of the
first American companies to re-enter Myanmar after the U.S.
started easing sanctions in 2012 and runs plants outside Yangon.
  
    Carlsberg  CARLb.CO  - The Danish brewer operates in Myanmar
via a joint venture. A spokesperson said it has scaled down
production slightly due to the unstable situation. 

    Unilever  ULVR.L  - The Anglo-Dutch consumer goods giant
runs a plant in Myanmar producing shampoos and haircare products
and has been building its presence through a joint venture
announced in 2017.     
    
    HOTELS    
    Hilton Worldwide Holdings  HLT.N  - One of its three hotels
in Myanmar is in Rakhine state and on land leased from the
military, activist groups say. Hilton said it operates in line
with trade sanctions and is taking steps to address human rights
considerations. 
    
    Shangri-La Asia  0069.HK  - The Hong Kong-listed group runs
a luxury hotel in commercial hub Yangon on land leased from the
military, according to the 2019 UN report. Shangri-La did not
respond to a request for comment.
    
    GARMENTS 
    H&M  HMb.ST  - The Swedish fashion giant has suspended new
orders from Myanmar, where it has around 45 direct suppliers,
citing "practical difficulties and an unpredictable situation".
 urn:newsml:reuters.com:*:nL8N2L62GZ 
    
    Pan-Pacific Co Ltd  007980.KS  - The Korean company runs
factories in Myanmar, producing products for brands like
Columbia, Gap and Zara. It cut ties with military conglomerate
MEHL in 2020 by buying out its stake in one of its Myanmar
businesses, a spokesman for the firm said.

    AUTOS    
    Suzuki Motor  7269.T  - The Japanese automaker is the oldest
vehicle producer in Myanmar and the largest by sales. It
suspended operations at its two plants there immediately after
the Feb. 1 coup but then reopened them.  urn:newsml:reuters.com:*:nL1N2K80CB 
    
    FINANCE   
    Japan's Mitsubishi UFJ Financial Group  8306.T , Sumitomo
Mitsui Financial Group  8316.T  and Mizuho Financial Group
 8411.T , China's ICBC  601398.SS  and Singapore's OCBC
 OCBC.SI  and DBS  DBSM.SI  are among foreign banks with a
presence in Myanmar. 
    
    TELECOMS    
    Telenor  TEL.OL  - The Norwegian telecoms provider entered
Myanmar after it began opening up its market in 2013. Since the
coup, Telenor has been forced by authorities in Myanmar to shut
down its network intermittently. It has expressed concern about
amendments to cyber laws that it says broaden the military's
power and curbs civil liberties.
        
    COMMODITIES    
    Olam  OLAM.SI  - The Singapore-listed commodities trader
buys rice in Myanmar and has a teak business which it is in the
process of exiting. It stopped purchasing rice from military
conglomerate MEC in early 2019 and says it now has a limited
presence in Myanmar.
    
    Wanbao Mining - The subsidiary of Chinese state-owned
weapons maker Norinco operates two copper mines in Monywa, in
north-central Myanmar, in partnership with MEHL. Monywa copper
miners stopped work last month to demonstrate against the coup.
    
    British American Tobacco  BATS.L  - The tobacco group
re-entered Myanmar in 2013. Its joint venture partner has come
under scrutiny for military ties and land grabbing. A BAT
spokesman said its operations comply with business standards.

 (Reporting by Reuters staff; Compiled by John Geddie; Editing
by Edwina Gibbs)
 ((John.Geddie@thomsonreuters.com; +65 6403 5578;))