UP CO., LTD
Organization Details
We are a group of small and medium companies active in real estate development as well as production of construction materials. As part of our growth strategy through diversification into other sectors, we are aiming to start manufacturing lead acid battery in Mongolia. We will set up a new start-up company to operate this important battery production plant and the required capital investment will be provided from our head company, UP Co., Ltd.
Impact Story
Mongolia is largely a mining economy. Mongolia’s economy is hugely dependent on the export of minerals like copper, coal, iron and exports of minerals account more than 90% of country’s total exports, showing that the economy is very vulnerable on price of commodities. At the same time, Mongolia mainly imports goods from abroad than producing internally. Exports shrink when prices of commodities fall, but imports largely stays at the same level because people use them, this problem creates huge pressure on the local currency resulting in less buying power. One way of elevating this problem is “import substitution” of goods that can be produced internally. To dedicate our efforts handling this problem our company made some research and identified “battery” as a product we can manufacture internally because first battery manufacturing process is not very complicated and also the amount that we can “import substitute” is significant for one single product.
Mongolia’s battery need per year is estimated to be around USD 20.0 mln but as there is no battery manufacturing factory in Mongolia, all are imported from countries such as Japan, South Korea.
Therefore we are aiming to start up a battery manufacturing plant in Mongolia and for that we need experts that can assist us from making the feasibility study, technology selection, designing of batteries. With this project it is estimated that we create of about 20 new jobs.
