- Region: Latin America and the Caribbean
- Manufacturing and Services
- Overseas Investment Loans
August 25, 2015
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed today a loan agreement amounting up to USD6.5 million (JBIC portion) with G-TEKT MEXICO, CORP S.A. DE C.V. (G-MEX), a Mexican subsidiary of G-TEKT CORPORATION (G-TEKT). The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The loan is intended to finance the automobile parts manufacturing and sales business of G-MEX in the State of Guanajuato, Mexico. The fund will be used for the purchase of equipment.
G-TEKT, which was established in April 2011 upon the merger of KIKUCHI CO., LTD. and TAKAO KINZOKU KOGYO Co., Ltd., conducts manufacturing and sales of automobile parts, mainly automotive body frame and transmission components; it has operated for more than 60 years from the era of its predecessors. G-TEKT is globally deploying overseas business to establish a mobile parts supply system for customers who are finished car manufacturers and parts manufacturers, backed by the recent expansion of overseas production capacity by Japanese automobile and parts manufacturers.
In recent years, a number of automobile manufacturers and suppliers including the Japanese are deploying their business in Mexico, against the backdrop of its growing importance as an export base toward the North American automobile market. Under these circumstances, G-TEKT established G-MEX in September 2013 and plans to expand its local operation in order to respond to the needs of major customers. Thereby, the loan will contribute to maintaining and strengthening the international competitiveness of Japanese industries through supporting the overseas business deployment of G-TEKT in Mexico.
As Japan's policy-based financial institution, JBIC will continue to support the overseas business deployment of Japanese companies in growing markets such as Mexico, by drawing on its various financial facilities and schemes for structuring projects and performing its risk-assuming function.