Loan for Automotive Steel Sheet Manufacturing and Sales Business of Japanese Company in Indonesia
Supporting Overseas Business Deployment of Japanese Steel Industry
- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed today a loan agreement amounting up to USD22 million (JBIC portion) with PT Krakatau Nippon Steel Sumikin (KNSS), an Indonesian subsidiary of NIPPON STEEL & SUMITOMO METAL CORPORATION (NSSMC). The loan is cofinanced with Sumitomo Mitsui Banking Corporation (lead arranger), Mizuho Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation, and Sumitomo Mitsui Trust Bank, Limited, with a total cofinancing amount of USD220 million.
This loan is intended to provide the necessary funds for the manufacturing and sales of cold-rolled, hot-dip galvanized, and galvannealed steel sheets for automobiles (production capacity: 480 thousand tons/year) conducted by KNSS, which was jointly established by NSSMC and a state-owned Indonesian steel manufacturing company, PT KRAKATAU STEEL (Persero) Tbk (KRAKATAU).
Demand for high-quality automotive steel sheets in Indonesia is expected to increase in line with the automobile market which is expected to enjoy continued growth backed by the country’s economic growth. Given such circumstances, NSSMC aims to respond promptly and appropriately to the needs of its customers in Indonesia, who are mainly Japanese auto manufacturers, by setting up a state-of-the-art automotive steel sheet production line and producing locally through its joint venture with KRAKATAU. NSSMC promotes its global strategy as one of the major pillars of its “2017 Mid-Term Management Plan” implemented for FY2015-2017, and will commit to building a strong presence in the world, particularly in the ASEAN region, through local production. Through the support of such overseas business deployment of NSSMC, this financing will contribute to maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.