- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
July 31, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling up to JPY30 million (JBIC portion) with Irifune Kozai Co., Ltd. (Irifune Kozai; Head Office: Tokyo; President: Katsumasa Ichino). The loan is cofinanced with Sumitomo Mitsui Banking Corporation (SMBC), with the overall cofinancing amount equivalent to approximately THB30 million.
This loan is intended to finance*1 the establishment of IRIFUNE STEEL (THAILAND) CO., LTD. (IST), the first overseas subsidiary for Irifune Kozai, in Thailand, located in Pathum Thani Province about 40 km north from Bangkok, to engage in processing and selling steel products.
Irifune Kozai is a long-standing company processing and selling steel sheets and plates for more than 60 years. Since its establishment, the company has had its forte in processing for producing pickled and oiled steel sheets and plates*2, supplying them to parts supply manufacturers of electric appliances, automobiles, construction machines and industrial machinery as parts for finished products. Since Thailand has been making progress in industrial agglomeration primarily for the auto industry, and its middle class has been expanding due to robust economic growth, solid demand for steel sheets and plates is foreseen as the hub of production bases in the ASEAN region. Given this prospect, Irifune Kozai intends to expand its business by setting up IST in March 2014. This loan will support the overseas business deployment of Irifune Kozai 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 Thailand, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 JBIC provided a separate loan to Irifune Kozai to finance necessary capital for establishing IST. See Press Release on March 26, 2014.
- *2 In manufacturing hot-rolled steel sheets, oxide layers (scales) are produced on the surface of them through contact with oxygen in the air. Pickled and oiled steel sheets are fine surface steel sheets processed in a hydrochloric acid bath to remove the scales chemically.