- Region: Asia
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
December 11, 2014
The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement amounting up to CNY90 million (JBIC portion) with HIRUTA (FOSHAN) AUTOMOTIVE COMPANY, LIMITED (HFA), a Chinese subsidiary of HIRUTA KOGYO CO., LTD. (Hiruta Kogyo; Headquarters: Okayama Prefecture; Representative Director: Tetsushi Hiruta). The loan is cofinanced with private financial institutions.
This loan is intended to finance the capital investment of HFA, a wholly owned subsidiary of Hiruta Kogyo, for manufacturing and sales of automobile parts such as chassis, transmissions and engine related parts in Guangdong Province, China.
Hiruta Kogyo is a small and medium-sized enterprise (SME) who manufactures and sells automobile parts. Hiruta Kogyo has expanded overseas businesses to the U.S., Thailand, China and Mexico*1, following major Japanese automobile manufacturers' overseas business deployment, and plans to expand its businesses through HFA in China, which is the world's largest automobile market that continues to grow. Thus, this loan will contribute to the maintenance and improvement of the international competitiveness of Japanese industries, through supporting Hiruta Kogyo's overseas business deployment.
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 growing markets such as China, 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.
- *1 JBIC signed a loan agreement with HIRUTA MEXICO, S.A. DE C.V., Hiruta Kogyo's Mexican subsidiary, for financing the construction of production facilities on March 13, 2014. See Press Release on March 13, 2014.