- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
September 28, 2012
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed on September 27 a loan agreement amounting up to 111 million U.S. dollars (JBIC portion) with Nippon Steel Galvanizing (Thailand) Co., Ltd. (NSGT), a company incorporated in Thailand. The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. The overall cofinancing amount is equivalent to 222 million U.S. dollars.
- The loan will finance NSGT, a wholly-owned subsidiary of Nippon Steel Corporation (NSC) in Thailand, for building a new production line of hot-dip galvanized steel (with an annual production capacity of 360,000 tons) in Rayong Province to meet a further increase in projected demand for steel sheets in automobile industries, mainly in Thailand.
- In 2011, about 1.46 million motor vehicles were produced in Thailand. However, as automakers have been increasing their production capacities, a further increase in their production is expected in the future. As a result, it is foreseen that demand for hot-dip galvanized steel sheets, which are indispensable for manufacturing car bodies, will increase. NSC thus seeks to meet increasing demand for them from local Japanese as well as Western automaker subsidiaries and affiliates, by producing these steel sheets locally through NSGT. This loan will support NSC in its manufacturing and sales of hot-dip galvanized steel sheets in Thailand, thereby contributing to maintaining and improving the international competitiveness of the Japanese steel industry.
- JBIC will continue to support overseas business deployment of Japanese companies in growth markets, such as Thailand, by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.