- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
September 18, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed on September 17 a loan agreement totaling up to THB700 million (JBIC portion) with SANGO Thai Automotive Parts Company, Limited (STA), a Thai subsidiary of Sango Co., Ltd. (SANGO; Headquarters: Aichi Prefecture; President: Kozo Tsunekawa). This loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The loan will provide STA, a subsidiary of SANGO, funds required for manufacturing and sales business of automobile parts to be conducted in Chachoengsao Province, the central region of Thailand.
SANGO, which started business in 1928, is a long-standing mid-tier enterprise having strength in metal processing technologies for various metal stamping and pipe products, and manufacturing and selling automotive exhaust system parts for major automobile manufacturers. In November 2013, SANGO established STA, its second base in Thailand where there is the prospect of stable demand from Japanese-affiliated automobile manufacturers and the related industries. By establishing STA, SANGO intends to strengthen its production system and expand a further market share in Thailand. This loan will support the overseas business deployment of SANGO, 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.