Ex-Im Bank Finances Export of Farm Equipment to China
WASHINGTON, July 10, 2013 /PRNewswire-USNewswire/ -- The Export-Import Bank of the United States (Ex-Im Bank) announced today a pair of comprehensive guarantees of two HSBC loans totaling $55.6 million to support the export of American aircraft and agricultural machinery to China.
According to Bank estimates derived from Departments of Commerce and Labor data and methodology, Ex-Im Bank's financing will support approximately 400 U.S. jobs across the United States.
The authorizations mark the 19th and 20th transactions, respectively, registered under the 2005 Framework between Ex-Im Bank and China's Ministry of Finance to promote U.S. exports to China. This week, the U.S.-China Strategic and Economic Dialogue will be held in Washington, D.C., bringing together senior officials of both countries.
"As we gather this week to highlight the economic cooperation between the U.S. and China, these two transactions show how U.S. small-businesses are increasing sales and supporting jobs through exports," said Ex-Im Bank Chairman and President Fred P. Hochberg. "Here at Ex-Im, we have long identified China as a potential growth market for American exporters. And through the Framework Agreement, we are helping to open this critical market and supporting jobs here at home."
Included in the sale are four sprayers, 10 tractors, 70 combines, four Robinson helicopters, six Air Tractor crop dusters, and 20 Thrush crop dusters. The end user, state-owned Beidahuang Group of Harbin, China, will employ the equipment on its farms in northeastern China.
Thrush Aircraft, one of the manufacturers involved in the transaction, is a small business based in Albany, Ga., that sells aircraft for an assortment of agricultural-spraying activities. Among other things, the aircraft figure prominently in fire control; pest, weed, and disease control; and the sowing of rice and the feeding of shrimp.
"This is a terrific example of the power of an extremely bright and highly capable banking team bringing their expertise to bear on a commercial opportunity that helps - not only Thrush Aircraft and our jobs - but our new customers in China as well," said Payne Hughes, president of Thrush Aircraft. "I'm not exaggerating when I say this deal simply would not have been possible without Ex-Im banking behind it."
Ekpac China Inc., a subsidiary of Ekpac International Ltd., acts as a consolidating exporter for Ex-Im Bank's China Framework transactions and participated in both sales. The company's parent represents suppliers and manufacturers in the U.S. and throughout the world and helps them market and distribute their goods.
"These transactions are two of the biggest single projects financed in China under the U.S.-China Framework Agreement, and they will create new manufacturing jobs and will set an example for a number of ongoing projects in China," said Alvin Chan, CEO of Ekpac China Inc. "There will be significant growth in the number and amount of transactions under the Ex-Im Bank guarantee in China in the coming years, and this will surely increase manufacturing jobs in the U.S. Accordingly, Ekpac will need to increase its headcount as well as its employment of professional legal and accounting firms, in order to handle the increasing number of transactions."
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that creates and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years (from Fiscal Year 2008), Ex-Im Bank has earned for U.S. taxpayers nearly $1.6 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.
Ex-Im Bank approved $35.8 billion in total authorizations in FY 2012 – an all-time Ex-Im record. This total includes more than $6.1 billion directly supporting small-business export sales – also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $50 billion in U.S. export sales and approximately 255,000 American jobs in communities across the country. For more information, visit www.exim.gov.
SOURCE Export-Import Bank of the United States