- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on March 26 a loan agreement amounting to up to USD120 million (JBIC portion) with Denka SCGC Advanced Materials Co., Ltd (DSAM), a joint venture established by Denka Company Limited (Denka) and SCG Chemicals Public Company Limited, a Thai company. The loan is co-financed with Mizuho Bank, Ltd., bringing the total co-financing amount to USD200 million.
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The loan is intended to finance the funds necessary for DSAM to manufacture and sell acetylene black*1 used for lithium-ion batteries and next-generation batteries, etc.
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Denka regards acetylene black as one of its strategic products in ICT & Energy, a focus area in Management Plan “Mission 2030.” Acetylene black is used for the production of lithium-ion batteries and next-generation batteries, for which demand is expected to continue to grow. Against this backdrop, Denka intends to capture such growing demand, by establishing a manufacturing base in Thailand. The loan will support Denka’s overseas business expansion, thereby contributing toward maintaining and improving the international competitiveness of Japanese industry. Denka also supplies the acetylene black for lithium-ion batteries to Japanese companies and the loan will help to strengthen their supply chain resilience as well.
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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.
Note
- *1 Acetylene black, a type of carbon black, is a highly conductive carbon material. It is used as a lithium-ion battery cathode material additive.