- Region: Latin America and the Caribbean
- Manufacturing and Services
- Overseas Investment Loans
March 23, 2011
- The Japan Bank for International Cooperation (JBIC; President & CEO: Hiroshi Watanabe)*1 signed on March 22 a loan agreement totaling up to 120 million US dollars with Usinas Siderúrgicas de Minas Gerais S.A. – USIMINAS in Brazil. The loan was cofinanced with Mizuho Corporate Bank, Ltd., with JBIC providing guarantee for the cofinanced portion.
- This loan will be used to finance the new rolling mill for the existing heavy plate production facility in Ipatinga located in the State of Minas Gerais, Brazil in order for USIMINAS, Japanese Nippon Steel Corporation (NSC)’s equity method affiliate, to increase its production capacity. As growing demand for steel products is expected in Brazil due to its economic growth, the heavy plates produced by this Project are planned to be sold as high-value-added steel to satisfy the demand of shipbuilding industries, oil platforms and tubes (oil and gas transportation).
- Amid the increasingly intense competition in the global steel industry, NSC has announced the “Global Player Strategy,” and sees the expansion of overseas operations as one of the key components in its business strategy. It designated USIMINAS as one of the “Global Tri-polar Production and Processing Bases,” which covers the American and Pan-Atlantic emerging market. NSC has therefore provided the most advanced technology to USIMINAS for the heavy plate production facility, supporting USIMINAS’s strategy of focusing on high-value-added steel products. This loan will support NSC’s overseas business strategy, which will ultimately serve to maintain and enhance the international competitiveness of the Japanese steel industry.
- JBIC will continue to contribute to deepening and developing the close economic ties between Japan and Brazil, and financially support Japanese companies in maintaining and strengthening their international competitiveness.