- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
August 22, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling up to USD1.4 million (JBIC portion) with Higuchi (Hangzhou) Automotive Parts Co., Ltd. (HAC), a Chinese subsidiary of Higuchi Manufacturing Co., Ltd. (Higuchi; Headquarters: Gifu Prefecture; Director and President: Nariie Higuchi). The loan is cofinanced with The Daisan Bank, Ltd. and other financial institutions.
The loan is intended to finance HAC, a wholly-owned subsidiary of Higuchi, for manufacturing and selling of automobile safety equipment parts. The financing will specifically support HAC's building of a new plant.
Higuchi, which started business in 1937, is a small and medium-sized enterprise (SME) specializing in the manufacturing of precision metal forming products and holds advanced technology in producing parts related to automobile safety equipment (including air bags, seat belts, etc.). In step with overseas expansion of major Japanese automakers and their related industries, Higuchi has been increasing overseas business activities, expanding its operations in the USA in 2006 and in China in 2011 and in Mexico in 2013, and plans to capture a greater market share in China which has the world's largest automobile market with steady economic growth. The loan will support such overseas business deployment of Higuchi 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 SMEs, in the Chinese market where economic growth is expected in the future, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.