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Loan for Japanese Company's Plant Facility Production and Sales Project in China
Supporting SMEs and Mid-Tier Enterprises for Overseas Water-Related Business

  • Region: Asia
  • Manufacturing and Services
  • Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
  • Overseas Investment Loans
NR/2012-13
May 31, 2012
  1. The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a loan agreement totaling 200 million yen (JBIC portion) with NAGAOKA INTERNATIONAL CORPORATION (NAGAOKA; head office: Osaka; President & CEO: Hitoshi Mimura). The loan is cofinanced with Resona Bank, Limited., which brings the overall financing amount to 300 million yen.
     
  2. The loan will fund equity contribution to Nagaoka Hitachi Zosen Equipment (Dalian) Co., Ltd. in establishing a joint venture with Hitachi Zosen Corporation in Dalian City, Liaoning Province, China, with a plan to undertake the project of producing and selling plant facilities, including ones for petrochemicals, refineries and the water-related sector. 
     
  3. NAGAOKA has long possessed top-most technological capacity for screen internals, which are used as major equipment for the improvement and desulfurization process in petrochemical plants and refineries. Today, by using its technology, NAGAOKA has expanded business into the water-related sector with water intake facilities for groundwater and environment friendly water treatment facilities, for example, without using chemical substance. As part of this development, NAGAOKA has its sights on the growth potential of the Chinese market, where demand for infrastructure development has been increasing against the backdrop of high economic growth, and intends to produce screen internals for petrochemical plants and refineries, and water treatment facilities by Nagaoka Hitachi Zosen Equipment (Dalian) Co., Ltd., and sell these products to foreign engineering corporations operating in China, and to Chinese regional and local governments, among others.
     
  4. Amid the fast-paced growth continuing in emerging economies that is being led by China, the prospect of increasing demand for infrastructure development is expected to provide major business opportunities for Japanese companies. JBIC intends to support the participation in overseas infrastructure projects by Japanese firms, including small and medium enterprises (SMEs) and mid-tier enterprises, by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming functions.

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