- Region: The Middle East
- Manufacturing and Services
- Overseas Investment Loans
March 12, 2010
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed today a loan agreement totaling up to 10.2 million US dollars with Kubota Saudi Arabia Company, LLC (KSACO) incorporated in Saudi Arabia. The loan was cofinanced with Sumitomo Mitsui Banking Corporation (SMBC).
- The loan will finance the project, undertaken by KSACO, a joint venture firm of KUBOTA CORPORATION and Tharawat Development Company in Saudi Arabia, in which a manufacturing plant of reactor tubes*2 used in petrochemical plants will be built in Ad Dammam, Eastern Province of Saudi Arabia.
- The reactor tubes to be produced in this project are expected to be sold to the Middle Eastern market where the petrochemical industry is growing fast against the backdrop of abundant oil reserves, as well as North African and European markets. This loan will support Kubota's effort to capture new markets overseas.
- In the Joint Statement between Japan and the Kingdom of Saudi Arabia announced in April 2007, leaders of the two countries agreed to launch “an industrial cooperation framework” designed to further develop bilateral economic relations, and to establish a joint Task Force with the objectives of facilitating industrial investment opportunities in both countries. Following these decisions, the Japan-Saudi Arabia Industrial Cooperation Task Force was established with membership comprising both the public and private sector. This is the first project for Japan to invest in the manufacturing sector under the assistance of the Task Force.
- JBIC will continue to make contributions to building a strategic and multi-layered relationship between Japan and the Kingdom of Saudi Arabia, while supporting, as a governmental institution, Japanese firms' maintenance and improvement of international competitiveness by mobilizing a variety of financial tools.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 Reactor tubes are heat-resistant cast iron tubes used in petrochemical plants. Major types of reactor tubes include: the cracking coil which is used in furnaces producing ethylene by thermally cracking ethane and naphtha; and the reformer tube used in furnaces extracting hydrogen by reforming naphtha.