- 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 two loan agreements totaling up to USD1,545 thousand and THB160 million (JBIC portion; their overall amount is the equivalent of THB210 million) respectively with Daiki Aluminium Industry Co., Ltd. (Daiki) (Headquarters: Osaka Prefecture; President: Takaaki Yamamoto) and DAIKI ALUMINIUM INDUSTRY (THAILAND) CO., LTD. (DAT), a Thai subsidiary of Daiki. These loans are cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd., with the overall cofinancing amount adding up to the equivalent of THB382 million.
These loans are intended to finance the construction of the second plant in Rayong Province, the central region of Thailand, required for manufacturing and sales business of secondary aluminium alloy ingots to be conducted by DAT, directly through DAT or by way of Daiki.
Daiki, which started business in 1922, is a pioneer of secondary aluminium alloy ingot manufacturers and has long held the largest share of the domestic market. Daiki expanded business operation into Thailand in 1999 and has since been supplying its products to local Japanese-affiliated automakers, among others. Amid the ongoing agglomeration of the automobile industry, Daiki intends to increase larger market share by increasing local production capacity with the construction of the second plant. This loan will support the overseas business deployment of Daiki 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, including loans to meet the needs of local currency funds, for structuring projects, and performing its risk-assuming function.