Establishment of Concrete Batching Plant for the Construction Needs in Myanmar

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11th March 2014 | Myanmar Construction Summit 2014

Tim Driver

Vice President-General Manager

Young-Holloman

Presenter

Profile

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Presentation Agenda

A

B

Company Overview

Myanmar Construction Landscape

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C Concrete Overview

Setting Up Concrete Batch Plants in MyanmarD

Q&AE

Company OverviewA

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About Young-Holloman

• Young-Holloman is a joint venture between Myanmar-based conglomerate Young Investment

Group (YIG) and American engineering, procurement and construction firm Holloman

Corporation

• First ever joint venture between a Myanmar and American firm in the construction and energy

sectors.

• Engineering & Construction business units cover various segments which includes

construction, concrete production and cement manufacturing.

Forging Opportunities Together in Myanmar

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Photo: Young-Holloman Grand Opening

Ceremony at Trader’s Hotel, Yangon

About Young Investment Group

• Founded in 1998 by U Thiha Aung

• One of Myanmar’s fastest growing conglomerate with a presence in Myanmar, China and

Singapore.

• Operates in 16 principle subsidiaries which employ more than 6,000 people locally

• Subsidiaries are in 9 different business sectors:

o Automobile

o Construction

o Energy

o Finance

o Insurance

o Manufacturing

o Mining

o Telecommunications

o Trading

Leading Myanmar-based Conglomerate

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About Holloman Corporation (HC)

• Founded in 1960 by Sam Holloman as Holloman Construction Company

• In 2002 the Company became Holloman Corporation: The company was 100% employee-owned when it formed an ESOP and purchased the company from Sam Holloman

• More than 50 years of constructing pipelines, processing facilities, municipal water and wastewater plants.

• Completed more than 5,000 projects for more than 300 customers and worked over 18 million man hours without a lost time accident.

• Currently, one of the Top 100 Engineering and Construction firms in the United States.

• Global presence with projects in the United States, Russia, Papua New Guinea, Australia, Singapore and Myanmar.

Where ingenuity meets experience

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Holloman’s ClientsForging long term relationships

• Anadarko

• Apache

• Atmos

• Boardwalk

• Brazos Electric

• Centurion

• Crosstex

• Chesapeake

• Chevron

• DCP Midstream

• Denbury

• Devon

• Dominion

• Eagle Rock

• El Paso

• Enhanced Oil Res

• Enbridge

• Encana

• Energy Transfer

• Enstor

• Enterprise

• EOG

• Exxon E&P

• Foothills

• Hess

• Kinder Morgan

• Legado

• Longhorn

• Louis Dreyfus

• Megellan

• Oneok

• Oxy

• Plains All American

• Range

• Regency

• Resolute

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• Sandridge

• Sempra

• Shell P/L

• Targa

• Valero

• Williams

• XTO

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" Mr. Thiha Aung is Chairman of our Young-Holloman and he is one of the Founder shareholder

in CHDB ( Construction and Housing Development Bank )."

“Our business plan is centered on the continued development of the Myanmar workforce. A

cornerstone of Young-Holloman’s commitment is the training of personnel. We will have a world

class training program that will focus on worker safety as well as improving core skill sets.”

Bryce Harrell, CEO

Young-Holloman

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Myanmar Construction LandscapeB

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Myanmar Construction Landscape

• Urbanization to be the main driver for construction growth in Myanmar

• Yangon is estimated to be home to 10 million people by 2040. That’s roughly 155,000 additional

people each year for the next 26 years.

Ride on the existing infrastructure boom in Myanmar

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Figure: Forecast of people living in urban areas in Myanmar (Source: IPSOS Business Consulting)

Myanmar Construction Landscape

• Exponential growth with Compound Annual Growth Rate

“CAGR” of 20%. Annual output is estimated to hit

US$4.3billion by end 2016

• Construction will still be mainly concentrated in residential

which is inline with government housing plans.

• Ministry of Construction’s has envisioned a target of a

million houses to be built over a 20 year period which

translates to an annualized output of 50,000 units.

• The demand is in office and commercial buildings such

as hotels and top grade office buildings that will drive

commercial construction growth.

• Forecasted that more than 100 new high-rise buildings to

be completed within the next 3 years in Yangon.

• Ongoing major infrastructure construction projects such

as:

o Large-scale hydroelectric development

o Airports

o Deep-sea ports

o International expressways

Ride on the existing infrastructure boom in Myanmar

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Figure: Myanmar Construction Industry Sector Contribution

in 2013 (Source: IPSOS Business Consulting)

Concrete OverviewC

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About Concrete

• Most-used man-made material in the world.

• Concrete is extremely durable and is often used in the

construction of apartment blocks, dams, sewage

systems, pavements, roads, buildings, skyscrapers,

lamp posts, tunnels and many more.

• Gains strength over time and not weakened by

moisture, mold or pests.

• Concrete is recyclable and has excellent thermal

mass

• It’s a highly effective barrier and naturally fire

resistant.

• Lesser energy to produced compared to bricks.

• Low CO2 emissions from concrete production

compared to other building materials.

High quality construction material for modern-day construction

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Concrete Production

• Concrete is made from the following raw materials

o Aggregates

Makes up 60-75% of the concrete’s volume. Composed of materials such as stone, sand and gravel.

Normally crushed into smaller pieces. Crushed aggregate makes a higher quality concrete and overall

higher strength and durability.

o Water

Need water to activate the chemical reaction with dry cement.

o Additives

Solid or liquid chemicals added to the concrete before or during preparation. Help improves the

concrete’s durability or to reduce the concrete’s water content as to shorten setting times.

o Cement

Most important material in the concrete mix. Gives concrete the required resistance.

o Air

Step by Step Explanation

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Concrete ProductionModular Diagram of a Concrete Batch Plant

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Setting Up Concrete Batch Plants in MyanmarD

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Myanmar Concrete Landscape

• Majority of modern buildings in Myanmar are still built on brick and mortar.

• Rising demand for concrete in Myanmar due to growing number of infrastructure and construction

projects.

• Increasingly, clients are focusing on the quality of concrete product

• Precast concrete technology helps shorten construction time and helps to reduce costs.

o Precast concrete blocks

o Precast concrete walls

High quality construction material for modern-day construction

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Fixed Concrete Batch Plant

• Fixed or Stationary Concrete Plant : • Advantages: Typically a large volume plant, consistent customer base and centrally located

Increased Output, Suitable for Servicing Multiple Construction Projects

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Portable Concrete Batch Plant

• Advantages: Generally lower cost, easily moved from project to project, concreteproduction is dedicated to one customer at one specific project site.

Mobile and Low Transportation Cost

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Concrete Strategy in Myanmar

• Bullish and committed to the construction industry’s

growth in Myanmar

• Young-Holloman targets to build 7-10 concrete batch

plants over the next 3 years in Myanmar.

Service and Quality are the Crux in our Strategy

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Focused on delivering better quality products and services

at a competitive pricing to the Myanmar construction industry.

Questions & AnswersE

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Address#1210, Floor 12-A

Sakura Tower

339 Bogyoke Aung San Road

Kyauktada Township, Yangon, Myanmar

THANK YOU

Tim DriverEmail: timdriver@youngholloman.com

Office: +95 1 255042

Mobile: +95 9 420150319

Fax: +95 1 255209

YOUNG-HOLLOMAN

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