- Region: Asia
- Manufacturing and Services
- Equity Investment
September 16, 2015
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The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed*1 a shareholders' agreement a subscription of preferred shares amounting up to USD50 million with KH Neochem Co., Ltd. (KH Neochem) to participate in Taiwan-Japan Oxo Chemical Industries Inc. (TJOC), a Taiwanese company.
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This transaction is intended to support the production and sales of isononyl alcohol (INA) by TJOC, a company that KH Neochem jointly established with CPC Corporation, Taiwan (CPC) and Mega International Commercial Bank.
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KH Neochem is the only petrochemicals producer in Japan producing INA, one of its flagship products, and thus possesses unique technologies and a wealth of know-how for INA production. INA is a feedstock for diisononyl phthalate (DINP), a type of flexible PVC plasticizer. DINP is used to produce wire covering material, automotive underbody coatings and wallpaper. Given the growing demand for DINP mainly in the emerging countries of Asia, KH Neochem plans to expand INA productions and sales to Asian countries through TJOC, its first overseas production base, cooperating with CPC, one of the leading companies in Taiwan, who will supply key feedstock to this project. JBIC will support KH Neochem from the early stage of the project by utilizing its function of equity participation, and this transaction will contribute to maintaining and strengthening Japanese industries' international competitiveness.
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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, including equity participation.
Note
- *1 Athough the agreement was already concluded on September 10, 2015, the press release was issued today.