Loan for Electric Vehicle Parts Manufacturing and Sales Business of Sankyo Tateyama’s German Subsidiary
Supporting Overseas Business Expansion of Japanese Company
- Region: Europe
- 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 approximately EUR13 million (JBIC portion) with ST Deutschland GmbH (STD), a German subsidiary of Sankyo Tateyama, Inc. (Sankyo Tateyama). The loan is co-financed with Mizuho Bank, Ltd., bringing the total co-financing amount to EUR23 million.
The loan is intended to finance, through STD, the funds necessary for ST Extruded Products Germany GmbH (STEP-G), another German subsidiary of Sankyo Tateyama, to conduct the manufacturing and sales business of components for the battery frame of electric vehicles.
STEP-G manufactures and sells aluminum extrusion profiles for multiple segments including the automotive segment and the rail segment. Europe is the starting point of the global trend toward realizing a decarbonized society, and with the electrification of vehicles and the tightening of environmental regulations, the demand for aluminum products for automotive parts is expected to grow for improving cruising range and reducing body weight. Under these circumstances, STEP-G aims to increase its production capacity and market share by expanding its facility for manufacturing components for the battery frame of electric vehicles in Germany, which is one of the world's leading automotive markets. The loan will support the Japanese company'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 for structuring projects and by performing its risk-assuming function.