- Region: The Middle East
- Energy and Natural Resources
- Manufacturing and Services
- Overseas Investment Loans
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The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed today a loan agreement amounting to USD 2.7 billion (JBIC portion) with Toho Titanium Co., Ltd. (Toho Titanium). The loan is co-financed with Mizuho Bank, Ltd., and the overall amount is USD4.6 billion.
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This loan is to provide the funds for a joint venture company in Saudi Arabia, Advanced Metal Industries Cluster and Toho Titanium Metal Company Limited (ATTM), to start titanium sponge*1 production and sales business. ATTM is jointly invested in by a Japanese company, Toho Titanium, and a Saudi Arabian company, Advanced Metal Industries Cluster Company Limited.
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Titanium is one of the rare metals, which is lightweight yet strong and high heat and corrosion resistant, so that it is broadly used for general industrial purposes such as for chemical plants and seawater desalination plants as well as in the aerospace industries. However, 100% of ores which are used in Japan as titanium's raw materials are imported from overseas. This loan contributes to the steady long-term supply of titanium in order to meet the growing global demand of titanium sponge in both industrial and aviation sectors.
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As Japan's policy-based financial institution, JBIC will continue to support Japanese companies in promoting the development and acquisition of key natural resources, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
Note
- *1 Titanium is mainly used for two purposes - titanium oxide for pigments and titanium metal for aircraft and industrial plants. The titanium sponge produced in this project is an intermediate material of titanium metals, which will be used for aircraft and plants.