- Region: Latin America and the Caribbean
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
March 31, 2015
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The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling to USD7 million (JBIC portion) with TOHKEN THERMO TECH CO., LTD. (TOHKEN THERMO TECH; Headquarters: Osaka; President and CEO: Osamu Kawasaki). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd., bringing the total cofinancing amount equivalent to USD10 million.
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The loan is intended to finance the manufacturing and sales business of heat treatment conducted by TOHKEN THERMO MEXICANA, S.A. DE C.V. (TTM), a Mexican subsidiary of TOHKEN THERMO TECH. The fund will be used for the construction of its second factory.
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TOHKEN THERMO TECH is a small and medium-sized enterprise (SME) conducting the manufacturing and sales business of heat treated metal products for automobiles and has the eminent corporate scale and technical capabilities as one of the pioneering Japanese firms specializing in heat treatment. In recent years, while the overseas business deployment of Japanese automobile parts manufacturers is increasing, the company has been setting up subsidiaries as production bases starting with Thailand in 1995, Malaysia in 1996, China in 2011 and Mexico in 2013, in order to actively promote the globalization of its operation.
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In Mexico, the demand for heat treatment from Japanese automobile manufacturers is growing, while the importance as an export base to North America and Central and South America for Japanese automobile manufacturers is increasing. Under these circumstances, the company plans to expand its market share in heat treatment business by building the second factory. This loan supports such overseas business expansion of TOHKEN THERMO TECH and thereby will contribute to the international competitiveness of Japanese industries.
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As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies, including mid-tier enterprises and SMEs, in such growing markets as Mexico, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.