A deal that is expected to be worth $40 million a year for the Irish manufacturer’s subsidiary will allow it to pay off debts in a deal that will give it a more secure future and secure a more profitable future, its chairman said.
The €20 million a-year deal will allow the company to borrow money from banks in Europe, the US and Japan.
It comes just days after the company announced a €6.4 million investment in a new factory, bringing its total investment in the business to €20m, as it seeks to expand its business further in Europe.
The company said it will use the cash to boost production of a range of products in Europe and the US, while also expanding its manufacturing capabilities.
In a statement, Mr Kenny said the deal with Mitsubishi Heavy Industries Ltd (MHI) was one of the most important deals that he had seen in his 35 years as chairman of the company.
“I would like to thank the Mitsubishis and the other companies for their support over the last 12 years and for their commitment to help us build our business,” Mr Kenny told reporters in Dublin.
“We are proud to be part of a global manufacturing system that has helped us grow, create jobs and make the world a better place.”
The company, which was founded in the 1930s and has a presence in Japan, Europe and China, said it would now focus on the US market and other markets where it wants to expand production.
Mitsubishi said it expected to earn up to $40 per share in its latest quarterly results, which were published on Wednesday.
Mr Kenny also said the company’s new facility would create thousands of jobs in the US.
He added that Mitsubis new facility will be able to produce a range with different levels of automation, including those in which the machinery is completely automated.
As well as its new facility, Mitsubushi has already announced that it plans to spend €2.2 billion to modernise its plants in Japan and China.
But there was no immediate comment from the Japanese companies.
The deal also marks a significant investment by Mitsubas investment bank, Daiwa Bank.
Banks are generally reluctant to lend to companies, as they believe they can be overcharged by their suppliers and have less control over their finances.
However, there are some banks that have been very supportive of the Japanese manufacturers.
Earlier this month, Mitsui Financial Group, a Japanese financial giant, said Mitsubashi would be a “global leader” in its global credit card business.
At a press conference earlier this week, Mitsunese Chairman Hirokazu Kobayashi said the government’s assistance to Mitsubisha was crucial to ensure the company would continue to grow.
“The government is committed to ensuring that Mitsunishis growth will not be stunted by the financial difficulties of the recent past,” he said.
There have been concerns about Mitsubashis ability to borrow from banks, especially in the wake of the financial crisis, but Mr Kobayasa said the investment was an important step.
“In our view, Mitsushi’s debt to creditors is a major contributor to the company and to its financial stability,” he added.