Loan for Automotive Steel Sheets Manufacturing and Sales Business of JFE Steel Corporation’s Mexican Joint Venture
Supporting Overseas Business Expansion of Japanese Steel Industry
- Region: Latin America and the Caribbean
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on June 18 a loan agreement amounting to up to USD15 million (JBIC portion) with Nucor-JFE Steel Mexico S.de R.L.de C.V. (NJSM), a Mexican joint venture invested in by JFE Steel Corporation (JFE Steel) and Nucor Corporation, a US company. The loan is co-financed with Mizuho Bank, Ltd., bringing the total co-financing amount to USD25 million.
The loan is intended to finance the funds necessary for NJSM, established in 2016, to conduct the business of manufacturing and sales of automotive steel sheets in the State of Guanajuato in Mexico.
Mexico is the world’s seventh largest automobile producer and is attracting attention as a production hub of automobiles for the United States. A number of Japanese automakers are already conducting business in Mexico, and the stable demand for automotive steel sheets is expected to continue in the country. JFE Steel aims to respond to the demand and further expand its overseas business with the know-how of automotive steel sheet manufacturing, quality control, and technology services that the company has gained. The loan will support JFE Steel’s overseas business expansion, thereby contributing toward maintaining and improving the international competitiveness of the Japanese steel 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 for structuring projects.