Loan for Automotive Parts Manufacturing Business of Japanese Company in Mexico
Supporting Overseas Business Deployment of Mid-Tier Enterprises and SMEs
- Region: Latin America and the Caribbean
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed on March 14 a loan agreement amounting up to USD2,100 thousand (JBIC portion) with HIGUCHI INTERNATIONAL CORPORATION (HIC), a U.S. subsidiary of Higuchi Manufacturing Co., Ltd. (Higuchi; Headquarters: Gifu Prefecture; Director and President: Nariie Higuchi). The loan is cofinanced with THE SHIGA BANK, LTD.
This loan is intended to finance the automotive safely equipment manufacturing business conducted by HIGUCHI MANUFACTURING MEXICO, S. DE R.L. DE C.V. (HMX), a Mexican subsidiary of Higuchi, in the State of Coahuila de Zaragoza, Mexico. The funds will be used to invest in additional facilities*1
Higuchi, which started its business in 1937, is a small and medium-sized enterprise (SME) specializing in the manufacturing of precision metal pressings which holds advanced technology in the production of parts related to automotive safety equipment (airbags, seatbelts, etc.). In step with the overseas expansion of Japanese automakers and their related industries, Higuchi has been expanding its operations in the U.S., China, and Mexico, and, by expanding its production facilities in Mexico, it seeks to capture a greater market share in the Inter-American region, which promises continued sustainable growth in the automotive market. Through the support of such overseas business deployment of Higuchi, this financing will contribute to forming an integrated Japanese automotive parts supply chain in the Inter-American region, as well as 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, including mid-tier enterprises and SMEs, in the Inter-American market where economic growth is expected to continue, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
- *1 JBIC signed in June 2014 a loan agreement amounting up to USD5.3 million with HMX to finance the construction of its new plant. Please see Press Release on June 18, 2014 for further details.