- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
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The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed today a loan agreement with Asahi Kasei Plastics (Changshu) Co., Ltd. (APCS), a Chinese subsidiary of Asahi Kasei Corporation, totaling up to approximately RMB 66 million (JBIC portion). The loan is co-financed with Sumitomo Mitsui Banking Corporation with the overall financing amount adding up to approximately RMB 116 million.
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APCS will use the loan to construct a new plant in Changshu, Jiangsu Province, China for the manufacture and sale of plastic compounds*1 mainly used for automobile components.
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China is the largest automobile market in the world and the number of automobile sales is expected to increase driven by the growing middle class accompanying China's economic growth. As the use of electric vehicles increases, and stricter environmental regulations apply, the demand for plastic compounds, to reduce vehicle weight, improve cruising distance and lower CO2 emissions, is expected to grow. Asahi Kasei has plastic compounds manufacturing and sales facilities in Asia including China as well as in Europe and America. The company has decided to construct a new plant in Changshu as part of an ongoing effort to enhance its ability to respond to the demands of customers in China and to maintain and increase its market share. This Chinese yuan denominated loan will contribute to maintaining and strengthening the international competitiveness of Japanese industry by supporting the overseas expansion of Asahi Kasei.
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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.
Note
- *1