Loan for Japanese Automobile Parts Manufacturer in Mexico
Providing Local Currency Loan to Support Japanese Company with Overseas Operations
- Region: Latin America and the Caribbean
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Akira Kondoh) signed on November 20, 2017, a loan agreement amounting up to MXN 213.5 million (JBIC portion) with Ashimori Industria de Mexico, S.A. de C.V. (AIM), a subsidiary in the United Mexican States of Ashimori Industry Co., Ltd. (Ashimori Industry). This loan is cofinanced by private sector financial institutions, bringing the total cofinancing amount to the equivalent of approximately USD 20 million.
The aim of this loan is to finance AIM, which engages in manufacturing and sales of automobile parts in the state of Guanajuato, Mexico. The loan funds will be used to build a second factory within the existing factory site of AIM for enhancing the production facility.
Ashimori Industry specializes in manufacturing of not only automobile safety system products such as seat belts and air bags, but also materials used for trenchless rehabilitation of buried pipelines, industrial materials, as well as disaster prevention materials and equipment, etc. In recent years, Ashimori Industry has been proactively expanding its business to overseas markets. Ashimori Industry established its subsidiary AIM in Mexico in 2012 in response to many Japanese and non-Japanese auto manufacturers moving into Mexico to build their production and export bases for the U.S. and European markets. Since then, the company has supplied automobile seat belts, air bags as well as other automobile interior parts, through AIM, to Japanese car manufacturers and automobile parts manufacturers in Mexico and the U.S. Ashimori Industry aims to expand the distribution of its products to North America and Europe by building the second factory of AIM in Mexico. This local currency loan is to support the company in expanding its overseas business, which will also contribute to maintaining and strengthening the international competitiveness of Japanese companies.
As Japan's policy based financial institution, JBIC will continue to provide financial support to assist Japanese companies in expanding their overseas businesses by drawing on its various financial instruments for structuring projects, including local currency loans, and by expanding its risk-taking ability.