Loan for Flat Rolled Metal Processing and Sales Business of US Subsidiary of Sumitomo Corporation
Supporting Overseas Business Expansion of Japanese Company
- Region: North America
- Manufacturing and Services
- Overseas Investment Loans
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on September 24 a loan agreement amounting to up to USD50 million (JBIC portion) with SUMITOMO CORPORATION OF AMERICAS (SCOA), a US company wholly owned by Sumitomo Corporation. The loan is co-financed with a private financial institution, bringing the total co-financing amount to USD85 million.
The loan is intended to finance, through SCOA, the funds necessary for SteelSummit Holdings (SSH), another US company, to process and sell flat rolled metal.
In the business strategy of the Metal Products Business Unit, Sumitomo Corporation aims to increase the value of existing businesses and expand businesses strategically in each region. In the United States, which Sumitomo Corporation regards as one of the most important strategic regions, the company plans to capture the steel demand, which is significantly growing on the back of the economic recovery from the COVID-19 pandemic. The loan will support Sumitomo Corporation’s overseas business expansion, thereby contributing toward maintaining and improving the international competitiveness of the Japanese steel business.
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.