- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
August 31, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed a loan agreement*1 totaling up to 2.4 billion Thai baht (JBIC portion) with Sumitomo Rubber (Thailand) Co., Ltd. (SRT), which is a subsidiary of Sumitomo Rubber Industries, Ltd. (Sumitomo Rubber) in Thailand. The loan is cofinanced with private financial institutions.
- This loan will finance SRT for its establishment of a new tire factory and introduction of additional production equipment to the existing tire factories in order to manufacture tires for automobiles and agricultural equipment in Rayong Province, Thailand. SRT will export the tires manufactured in these factories to third countries and sell part of them in Thailand.
- Sumitomo Rubber Group has placed SRT as the group's central export base, and they plan to expand their production capacity of tires to the world's largest and to further boost their market share.
- This loan will support the overseas business deployment of these Japanese companies, and correspond to one of the priority issues in supporting the enhancement of the international competitiveness of Japanese companies' "strategic use of the finance functions in local currencies"of the "Financial Strategy" in the "Rebirth of Japan: A Comprehensive Strategy"decided by the Japanese Cabinet on July 31, 2012.
- JBIC will continue to support the overseas business deployment of Japanese companies by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming functions.
- *1 The agreement was concluded on August 16, 2012 and the press release was issued today, as the related procedures of relevant parties have been completed.