Loan for Automobile Parts Manufacturing and Sales Business of Japanese Company in Turkey
Supporting Overseas Business Deployment of Mid-Tier Enterprises and SMEs
- Area: The Middle East
- Manufacturing and Services
- Mid-Tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed today a loan agreement amounting up to EUR7,000 thousand (JBIC portion) with Sango OTOMOTIV URUNLERI SANAYI VE TICARET ANONIM SIRKETI (STI), a Turkish subsidiary of SANGO Co., Ltd. (SANGO; Headquarters: Aichi Prefecture; President: Kozo Tsunekawa). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The loan is intended to finance the automobile parts manufacturing and sales business of STI in Kocaeli Province, Turkey. The funds will be used for the expansion of its production facilities.*1
SANGO, which started business in 1928, is a long-standing mid-tier enterprise with particular strength in metal processing technologies for various metal stamping and pipe products, and manufacturing and selling automotive exhaust system parts for major automobile manufacturers. In March 2002, SANGO established STI in Turkey, where an increase in domestic demand bolstered by economic growth and further increase in export volumes of automobiles to Europe are expected, with the intention of gaining greater market share by strengthening its production structure. Thereby, the loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries through supporting the overseas business deployment of SANGO.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies, including mid-tier enterprises and small and medium-sized enterprises (SMEs), in growing markets such as Turkey, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 JBIC also provided STI with a loan totaling EUR4,200 thousand for the expansion of its production facilities in November 2014. See Press Release on November 13, 2014, for details.