- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
June 11, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed today a loan agreement totaling up to 18 million U.S. dollars (JBIC portion) with PT.G-TEKT Indonesia Manufacturing (G-TIM), which is a wholly-owned Indonesian subsidiary of G-TEKT CORPORATION (G-TEKT). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ (BTMU), which brings the overall cofinancing amount to 31.5 million U.S. dollars.
- This loan is intended to finance G-TIM for the purpose of the procurement of facilities necessary for the manufacturing and sales operations of automotive parts and components conducted in the Bukit Indah industrial estate in the outskirts of Jakarta.
- G-TEKT, established in April 2011 through a merger of KIKUCHI CO., LTD. and TAKAO KINZOKU KOGYO CO., LTD., has been manufacturing and selling mainly auto body frame components and transmission parts for more than 60 years. In parallel with the recent strengthening of the overseas production capacity of Japanese automobile manufacturers, G-TEKT has been conducting broad overseas operations to establish an agile and flexible supply system for its client automakers.
- As robust economic growth in Indonesia is expected to enlarge its automobile market, Japanese automobile manufacturers have been reinforcing production capacity one after another. Amid this development, G-TEKT established G-TIM, its production base in the 10th country with an intention to expand local business. This loan will support business operations of G-TEKT in Indonesia, thereby contributing to maintaining and improving the international competitiveness of Japanese auto parts manufacturers.
- 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 performing its risk-assuming function.