Southeast Asia / Insurance for Japanese Cypress (Hinoki) Export from Ehime Pref
Nippon Export and Investment Insurance
Nippon Export and Investment Insurance (NEXI) has provided insurance to Ehime Forest Association (located in Matsuyama City, Ehime Pref.) to support exports of locally grown Japanese cypress (Hinoki) to lumber processors in Southeast Asia. NEXI’s insurance, called Export Credit Insurance for SMEs and AFF Sector, covers risk of buyer’s non-payment caused by commercial risk events such as the buyer’s bankruptcy and political risk events such as natural disaster and foreign exchange restrictions.
Ehime Prefecture is one of the major wood producers in Japan. About 70 percent of the prefecture is covered by forests, and it is especially rich in Japanese cedar and cypress forests. Ehime Forest Association has been exporting the prefecture’s cedar and cypress lumber to China and Southeast Asian countries.
(Photo courtesy of Ehime Forest Association)
NEXI started to sell Export Credit Insurance for SMEs and AFF Sector in July 2016 to support overseas business of Japan’s agriculture, forestry, and fisheries sector. This is the first time that NEXI has provided this insurance to a forest association.
This is also the first successful insurance contract based on the cooperation agreement made between NEXI and the Ehime Bank, Ltd. in October 2015.
As Japan’s official export credit agency, NEXI will continue to actively support global business of the Japanese agriculture, forestry, and fisheries sector including food industry. NEXI will also focus on enhancing awareness of NEXI insurance products and promoting their use through the support network for SMEs’ overseas business development.
|Insured:||Ehime Forest Association|
|Type of Insurance:||Export Credit Insurance for SMEs and AFF Sector|
|Covered Risks:||Political Risk 95%, Commercial Risk 95%|
Contact: NEXI Osaka Branch Phone: 81-(0)6-6233-4019