The Mon State government has formed a committee to evaluate the repossession of Sittaung paper mill, located in Kyaikhto township’s Thein Za Yat village tract.
The committee will examine a proposal from the factory’s current ownership, the Shwe Thanlwin Company, which is no longer able to foot the costs of the facility.
The state government’s committee is comprised of officials from the local municipality, housing, land records, industrial supervision, workshop, and labour law departments.
“Our committee has conducted [a preliminary] field inspection. Now, we are inspecting the details. We asked the land records [department] to inspect the land in detail. We will submit [our report] to the government after our inspection is completed. The government will handle the transfer [of the factory],” said U Shwe Myint, the inspection committee’s chair and Mon State Bamar Ethnic Affairs Minister.
The state government is planning to invite private investors to help revitalize the facility and establish an industrial zone on the site of the former paper factory.
“Currently, there are Shwe Thanlwin staff, staff quarters, and factory equipment [on the premises],” said Mon State government office director U Myint Than Win. The inspection team is expected to look into “how to clear the staff and carry out [the land and equipment acquisition] in line with the labour law,” he said.
The Shan Thanlwin Company would be responsible for resolving any existing employment disputes with current workers, U Myint Than Win added.
The Shwe Thanlwin Company signed a thirty-year lease with the previous government in November 2016, at a rate of K41 million per year for the 698-acres site, according to the Global New Light of Myanmar.
The company also took out a ten-year lease on the factory building and machinery at a rate of more than K20 million per year, the state government said.