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The Japan Bank for International Cooperation (JBIC, Governor: Tadashi Maeda) signed a shareholders' agreement today with Daiichi Kigenso Kagaku Kogyo Co., Ltd. (DKKK) and other shareholders for an investment equivalent to a maximum of 500 million yen in Vietnam Rare Elements Chemical Joint Stock Company (VREC).
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This transaction is intended to support, through JBIC's investment, the provision of funds necessary for DKKK's consolidated subsidiary, VREC to manufacture zirconium oxychloride, which is used as a raw material of zirconium compounds and to export it to Japan.
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Zirconium compounds are used as raw materials for various industrial goods. These include emissions purification catalysts for automobile and industrial use, electronics materials such as oxygen sensors, refractory materials, automotive brake pads, fine ceramics, and solid electrolytes for fuel cells. Also, zirconium is listed as one of the Strategic Mineral Resources marked for prioritized effort in the Japanese government's Strategy for Securing Natural Resources, as it is essential to ensuring the competitiveness of the chemical industry.
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With a background of technological strength in refining and manufacturing zirconium compounds, DKKK holds the world's top class share in production output of these compounds. By supporting DKKK to secure procurement of zirconium oxychloride, this transaction contributes to the company's overseas business development as well as the stable supply of zirconium, a strategic mineral resource.
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As Japan's policy-based financial institution, JBIC will continue to support overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects including its function of equity participation, and performing its risk-assuming function.
