- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC, Governor: Tadashi Maeda) signed today a loan agreement amounting up to USD66 million (JBIC portion) with NGK CERAMICS (THAILAND) CO., LTD. (ACTH), a Thai subsidiary of NGK INSULATORS, LTD. (NGK), as part of JBIC's Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG*1). The loan is co-financed with private financial institutions.
This loan will provide the funds for ACTH to expand its manufacturing facility in Samut Prakarn Province, Thailand, which is necessary to manufacture and sell automobile exhaust purifying ceramics for large commercial vehicles.
In recent years, economic growth and population increases have driven rising automobile demand in Asian countries, particularly in China and the ASEAN region. In accordance with this trend, emission regulations have been tightened. Therefore, an increase in demand is forecasted for purification ceramics for automobile emissions, which include toxins such as hydrocarbon (HC), carbon monoxide (CO) and nitrogen oxide (NOx). Under such circumstances, NGK established ACTH in Thailand in 2015. The company initially manufactured automobile exhaust purifying ceramics for cars*2. Now, ACTH is planning to start a new production line to manufacture automobile exhaust purifying ceramics for large commercial vehicles and expand their business in the Asia region. This loan is intended to support NGK's overseas business expansion, improve and maintain the international competitiveness of Japanese industries, and to contribute to the preservation of the global environment through preventing air pollution.
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.
JBIC launched QI-ESG on July 1, 2018. This facility is aimed to provide a wide range of financing support for infrastructure development which is expected to help to preserve the global environment, including air pollution prevention. For more details, see Announcement on June 28, 2018.
See Press Release on May 16, 2016.