The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on February 4 a loan agreement amounting to up to USD18 million (JBIC portion) with Hitachi Energy Turkey Elektrik Sanayi A.Ş. (Hitachi Energy Turkey), a Turkish subsidiary of Hitachi Energy Ltd. (Hitachi Energy), which operates a power grid business under the umbrella of Hitachi, Ltd. (Hitachi). The loan is co-financed with MUFG Bank Turkey A.Ş., a Türkiye-based company within Mitsubishi UFJ Financial Group, Inc., bringing the total co-financing amount to USD30 million.
This loan is provided to Hitachi Energy Turkey for the relocation and expansion of its transformer manufacturing plant in Türkiye.
Hitachi Energy, operating within the Hitachi group, manufactures power transmission and distribution systems. Headquartered in Zurich, Switzerland, it provides a wide range of power infrastructure products and services across the sectors of power generation, transmission, and distribution. Currently, the necessity for the development of transmission and distribution networks is growing worldwide due to the increasing demand for electricity, driven by the progress of climate change initiatives around the world and the advancement and adoption of artificial intelligence (AI). To meet the growing demand, Hitachi Energy plans to expand its investment to enhance the production capacity of its existing plant.
The loan will support the expansion of Hitachi Energy’s production capacity for transformers, which are indispensable for building power grids, thereby contributing toward maintaining and improving the international competitiveness of the Japanese power infrastructure industry. It also aligns with the Japanese government’s policy of promoting the development of power networks across the globe.
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.
