- Region: Asia
- Manufacturing and Services
- Overseas Investment Loans
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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on August 26 a loan agreement amounting to up to approximately JPY8.6 billion (JBIC portion) with Tsumura & Co. (Tsumura). The loan is co-financed with MUFG Bank, Ltd. and Sumitomo Mitsui Banking Corporation, bringing the total co-financing amount to approximately JPY14.3 billion.
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The loan is intended to finance the funds necessary for the manufacturing of powdered extracts*1 by TIANJIN TSUMURA PHARMACEUTICALS CO., LTD. (TIANJIN TSUMURA), a Chinese subsidiary of Tsumura. The extracts are indispensable intermediate products that are processed into Kampo formulations.
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In its First Medium-Term Management Plan (FY2022–FY2024), Tsumura sets a policy to make an up-front investment to secure production and sales capacities, toward the sales expansion of Kampo medicines, of which the demand will continue to grow in the future. To improve productivity, Tsumura will further strengthen the procurement of raw materials and manufacturing of extract powder by expanding the facilities of TIANJIN TSUMURA, which is an essential part of its supply chain. The loan will support Tsumura’s overseas business expansion, thereby contributing toward strengthening supply chain resilience and maintaining and improving the international competitiveness of the Japanese industry.
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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 “Powdered extracts” refers to substances derived from the active ingredients of crude drugs in Kampo medicine, which are extracted, separated, concentrated, and dried.