- Region: Latin America and the Caribbean
- Manufacturing and Services
- Overseas Investment Loans
September 14, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) has signed a loan agreement totaling up to 13.2 million U.S. dollars (JBIC portion) with Nippon Steel Pipe Mexico, S.A de C.V. (NPM) incorporated in Mexico.*1 The loan is cofinanced with Mizuho Corporate Bank and the overall cofinancing amount is 22 million U.S. dollars.
- This loan will finance NPM, which was jointly established by Nippon Steel Corporation (Nippon Steel), SPT and SC Investment Co., Ltd. (a joint venture of Sumitomo Pipe and Tube Co., Ltd. (SPT) and Sumitomo Corporation) and Metal One Corporation, for manufacturing and selling high grade steel pipes for automobiles in Silao City, the State of Guanajuato in Mexico, and thereby capturing growing demand for automobile in that country.
- The number of automobiles produced in Mexico is projected to increase considerably in the coming years from roughly 2.6 million vehicles in 2011, due to the new entry and the expansion of production capacity of Japanese automobile manufacturers. Thus demand for middle-high grade steel pipes for automobiles, in which Nippon Steel and SPT hold strength, are also expected to increase. Given this prospect, each company investing in NPM intends to boost the local manufacturing of automobile steel pipes at NPM (to the production capacity of 24,000 metric tons/year), and is planning to supply the products to Japanese and Western automobile and auto-parts manufacturers. This loan will support each company investing in NPM for its overseas business deployment, thereby contributing to maintaining and improving the international competitiveness of the Japanese steel industry.
- JBIC will continue to support the overseas business deployments of Japanese companies by drawing on its various financial facilities and schemes for structuring projects, and by performing its risk-assuming function.
- *1 Although the loan agreement was already concluded on September 3, 2012, the press release was issued today, after the related procedures of relevant parties have been completed.