- 1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) signed today a loan agreement totaling ¥3,422.5 million with Rayong Olefins Co., Ltd1. in Thailand to increase its petrochemical production. The loan was cofinanced with Fuji Bank and Dai-Ichi Kangyo Bank, with JBIC assuming a 60 percent share of the total amount, or about 2,053.5 million yen.
- 2. The purpose of the buyers credit is to provide financial support for the export of equipment by Toyo Engineering Corp. and Mitsui Co., Ltd. to increase the capacity of the existing Olefins plant 2 in the Maptaphut industrial estate, located in Rayong, 200 kilometers southeast of Bangkok.
- 3. As economic recovery continues in Asia, demand for ethylene and propylene products in this region is expected to grow at an annual average rate of 5.6 percent and 3.4 percent, respectively, from 1998 to 2004. This project is designed to increase the supply capacity of petrochemical products to meet their growing demand in Asia. Upon completion of the project, production capacity for ethylene will increase by 150,000 tons to 750,000 tons per year and for propylene by 80,000 tons to 380,000 tons per year.
- 4.This loan will promote the export of Japanese equipment to Thailand. At the same time, the loan will support the development of Thailand's petrochemical industry, one of the core industries in its economy, and thereby contribute to the country's overall economic development.
1.Rayong Olefins is part of the largest conglomerate in Thailand led by Siam Cement Public Company Limited.(back)
2.With respect to the existing plant, JBIC previously signed a cofinancing agreement providing a buyer's credit totaling $237 million in August 1996.(back)