Thai Baht and USD Loan for Manufacturing Ceramic Products for Purifying Automobile Exhaust and Sales Business of Japanese Company in Thailand
Supporting Overseas Business Deployment of Japanese Auto Parts Industry with Local Currency Financing
- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed today loan agreements with NGK CERAMICS （THAILAND） CO., LTD. (ACTH), a Thai subsidiary of NGK INSULATORS, LTD. (NGK), amounting up to approximately THB800 million and USD26 million (JBIC portions) respectively. The loans are co-financed with private financial institutions.
The above transactions will provide the necessary funds for ACTH, located in Samut Prakan Province in Thailand, to manufacture and sell automobile exhaust purifying ceramics.
In recent years, Asian countries, particularly ASEAN countries, have seen increasing demand for automobiles, backed by growing economies and population. In view of tightening regulations on gas emissions in these countries, it is expected that demand for purification ceramics for automobile emissions, which include toxins such as hydrocarbon (HC), carbon monoxide (CO) and nitrogen oxide (NOx), will increase in the future. To expand its business in ASEAN countries, NGK, which already has a business location in Indonesia, established ACTH in Thailand as the company's second ASEAN operation. This transaction is intended to support NGK's business expansion in overseas countries by way of a local currency loan, 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 by drawing on its various financial facilities and schemes, including loans to meet the need for local currency funding, for structuring projects and performing its risk-assuming function.