Back in September 2013, it was reported that Tan Chong Motor Holdings (TCM) was set to construct an assembly plant in Myanmar to build small passenger cars and pickup trucks for the market.

Two years on, the plant is finally due to be built, The Malaysian Reserve reports. The 50-acre facility will be located in Bago, Myanmar, and will assemble completely knocked-down (CKD) models of B-segment cars, presumably led by the Almera, when it begins operations in 2018

The assembly plant is part of TCM’s plans to expand its Myanmar business, in which it is due to to invest US$50 million (RM211 million) over the next three years.

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Edaran Tan Chong Motor executive director Datuk Dr Ang Bon Beng told the publication that the company was currently finalising the securing of the land with the government of Myanmar, with the deal expected to completed by Q1 next year. He added that the plant in Myanmar will operate on a small scale basis, producing cars at a rate of three per hour.

Earlier in the month, it was reported that a five-year distribution agreement had been officially signed between Tan Chong Motor (Myanmar) and Nissan. Aside from obtaining the rights to distribute and sell Nissan vehicles, the distribution agreement also allowed TCM Myanmar the right to appoint dealers to sell vehicles and perform after-sales service operations on Nissan vehicles.

Tan Chong’s Myanmar unit was reported to have first gained the exclusive rights back in July 2013, but the latest agreement looks to finally cement the deal. Distribution is set to begin in June next year, according to Ang, who added that the focus for the first three years be on semi knocked-down (SKD) activities until the factory is in place to commence CKD operations.