- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
September 30, 2013
- The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Okuda) signed a loan agreement totaling up to 49.98 million Chinese yuan (JBIC portion) with ZHEJIANG JIAREN NEW MATERIALS CO., LTD, a local joint venture of TEIJIN LIMITED (Teijin).*1 The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), which brings the overall cofinancing amount to 83.3 million Chinese yuan. This is the first Chinese currency loan provided by JBIC.
- The loan is intended to provide finance for recycling polyester products and building a new plant to manufacture and sell high value-added polyester products in local currency, as it recycles polyester products and produces recycled polyester fiber.
- Teijin intends to manufacture high value-added polyester products through recycling polyester products by utilizing its proprietary chemical recycling technology*2 in Shaoxing City, Zhejiang Province, which is China's largest fiber product manufacturing location, and sell high value-added polyester fiber primarily in the country's domestic market. This project could lead to recycling practice in China, and, in this sense, has additional significance as it finances an environmental project as well. This loan will support overseas business deployment of Japanese companies in local currency, and contribute to maintaining and improving the international competitiveness of Japanese industries.
- As a public financial institution, JBIC will continue to support overseas business deployment of Japanese companies, such as with meeting local currency financing needs, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 Although the agreement for this loan was signed on September 24, 2013, the Press Release was issued today after completion of related procedures of relevant parties.
- *2 Chemical recycling technology efficiently removes impure substances, chemically decomposes polyester at the molecule level, and produces raw polyester material having the same quality as one produced from oil.