Loan for Manufacturing and Sales Business of Automobile Parts by Japanese Company in China
Supporting Overseas Business Deployment of Japanese SMEs
- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling up to USD2 million (JBIC portion) with GMB CORPORATION (GMB; Headquarters: Nara Prefecture; President: Yuichi Sakaguchi). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The loan is intended to finance GMB for manufacturing and sales business of automobile parts and components conducted by QINGDAO GMB AUTOMOTIVE CO., LTD. (JIMO GMB), its subsidiary in China.*1
GMB, which started business in 1943, is a mid-tier enterprise manufacturing and selling automobile parts and components to a broad range of assembled automobile and auto parts manufacturers in both domestic and foreign markets. Against the background of progress in motorization in emerging countries, robust expansion is foreseen in auto parts and components markets across the world. Amid this prospect, GMB intends to expand JIMO GMB, which was established in 2006 as one of its core production bases, and further expand its market share. The loan will support such overseas business deployment of GMB and thereby contribute to maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies, including mid-tier enterprises and small and medium-sized enterprises (SMEs), in growing markets such as China, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 JIMO GMB manufactures and sells valve spools (auto parts that regulate oil pressure valves in the automatic transmission), water pumps (auto parts for cooling the engine) and tripod joints (auto parts for transferring engine power to the drive shaft).