Loan for Manufacturing and Sales of Automobile Parts in Mexico
Supporting Overseas Business Expansion of Japanese Automobile Component Manufacturers through Local Currency Financing
- Region: Latin America and the Caribbean
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed today a loan agreement amounting up to approximately MXN65 million (JBIC portion) with Molitec Steel Mexico, S.A. de C.V. (MSM), a Mexican subsidiary of MOLITEC STEEL CO., LTD. (MOLITEC). The loan is co-financed with MUFG Bank, Ltd., bringing the total co-financing amount to MXN109 million.
This loan is intended to finance the expansion of manufacturing equipment used in relation to MSM's manufacturing and sales of automobile components, in particular continuously variable transmission parts, in the state of Aguascalientes in West-Central Mexico. It is the second loan extended to MOLITEC, following the first loan in December 2013*1
Mexico is a major automobile manufacturer and exporter for North America. Japanese and foreign-affiliated manufacturers of automobile-related products are developing their business in the market, and further increases in demand for automotive components are expected. Amidst this environment, MOLITEC founded MSM in 2013, and is now increasing its production capacity in order to expand its sales of automotive components in Mexico. This local currency loan is intended to support the company in expanding its overseas business, and will contribute to maintaining and strengthening the international competitiveness of Japanese companies.
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, including local currency loans, and performing its risk-assuming function.