- Region: Others
- Manufacturing and Services
- Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
- Overseas Investment Loans
April 23, 2015
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed today two loan agreements with THAI OKAWA CO., LTD. (TOCL) and OKAWA MEXICANA, S.A. DE C.V. (OMSC), subsidiaries of Okawa Screw Manufacturing Co., Ltd. (Okawa Screw; Headquarters: Tokyo; Representative Director and President: Katsuyoshi Okawa), for THB120 million and USD3 million (both JBIC portions) respectively. The loans are cofinanced with The Joyo Bank Ltd., bringing the total cofinancing amounts to THB175 million and USD4.3 million respectively.
The loans are intended to finance the manufacturing and sales business of automobile parts by TOCL in Rayong Province in Thailand and OMSC in the State of Guanajuato in Mexico. The funds will be used for the expansion of factories and manufacturing facilities.
Okawa Screw is a small and medium-sized enterprise (SME) in the manufacturing and sales business of automobile parts focusing on precision cold forging technology,*1 and has been strengthening the global production system by establishing TOCL in Thailand in 1989 and OMSC in Mexico in 2012. With the demand for automobile parts expected to expand in Thailand and Mexico while the importance of the ASEAN countries and North America as automobile production bases grows, the company plans to expand its business in both Thailand and Mexico to respond to the needs of major customers. The loans will support such overseas business deployment of Okawa Screw, 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 the overseas business deployment of Japanese companies, including mid-tier enterprises and SMEs, in growing markets such as Thailand and Mexico, 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.