The Japanese brewery company, Kirin Holdings Company Limited (KHCL), issued a statement on February 5 saying that it would terminate its current joint-venture partnership with the military-owned Myanma Economic Holdings Public Company Ltd (MEHPCL) by doing business with Myanmar Brewery Ltd and Mandalay Brewery Ltd.
KHCL issued the statement in response to the situation in Myanmar. It is the first of the foreign companies working in Myanmar to partner with military-ran businesses.
President and CEO of KHCL Yoshinori Isozaki said in the statement that he was deeply concerned by the recent actions of the military in Myanmar, which are against their standards and human rights policy.
The Japanese company decided to invest in Myanmar in 2015, believing that its business could contribute positively to the people and the economy of Myanmar as it entered an important period of democratization. Its aspiration was and remains to create a positive impact on Myanmar’s economy and society through its operations at Myanmar Brewery Ltd and Mandalay Brewery Ltd, the statement says.
Given the current circumstances, they have no option to terminate their current joint-venture partnership with MEHL, which provides the service of welfare fund management for the military. The company will be taking steps as a matter of urgency to put this termination into effect, the statement adds.
KHCL bought 55 percent of shares of Myanmar Brewery Ltd for US$560 million in 2015. During its investment, the Japanese company was demanded by human rights activists and organizations to stop its joint-venture business.
