JBIC concluded a loan agreement with Sojitz Corporation (Sojitz) to provide funds to construct a factory necessary for Vietnam-Japan Chip Corporation LTD. (VIJACHIP), a joint venture between Sojitz and Vietnamese investors, to produce and sell woodchips. VIJACHIP plans to produce 190 thousand BD tons*1 of woodchips annually starting in 2016, and all of the output will be handled by Sojitz, which plans on mainly selling it in Japan as raw material for paper. The overseas supply covers over half of Japan's demand for woodchips to make paper, but the supply of woodchips from Vietnam is expected to tighten in the medium- and long- term as China increases its production of paper due to its economic growth. This project thereby helps secure a stable supply of woodchips from Vietnam.
- *1BD (Bone Dry) ton is a measurement of wood pulp/chip at 0 percent moisture content.