Loan for Automotive Composite and Component Manufacturing and Sales Business of TEIJIN LIMITED’s US Subsidiary
Supporting Overseas Business Expansion of Japanese Companies
- Region: North America
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed today a loan agreement amounting to up to USD60 million with Teijin Holdings USA, Inc. (THUS), a US subsidiary of TEIJIN LIMITED (TEIJIN). The loan is co-financed with MUFG Bank, Ltd. and Mizuho Bank, Ltd., bringing the total co-financing amount to USD111 million.
This loan is intended to provide, through THUS, the funds required by Continental Structural Plastics Holdings Corporation (CSP), another US subsidiary of TEIJIN, to conduct the business of manufacturing and sales of its products, including automotive composites and components. It will also be used to strengthen production capacity and to build a new facility.
TEIJIN acquired CSP in 2017 and has enhanced its capability to propose solutions by combining the technology of carbon fiber reinforced plastics and composite materials, which TEIJIN focuses on, and CSP’s mass production technology for glass fiber reinforced plastics and components. The company endeavors to increase sales of the composites and components that help to make automobiles lighter, and also aims to establish a global and stable supply system by expanding the business from North America to Europe and China, utilizing CSP’s mass production technology and strong relationship with automobile manufacturers. The loan will support TEIJIN’s overseas business expansion, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry.
As Japan’s policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their businesses by drawing on its various financial facilities and schemes and performing its risk-assuming function.