Ex-Im Bank Approves $83 Million in Export Financing for Sale of U.S. Locomotives and Mining Equipment to Canada
February 27, 2012
(Ex-Im Bank)
Transaction Supports 500 American Jobs Across Six States
WASHINGTON, D.C. --- The Export-Import Bank of the United States (Ex-Im Bank)
approved an $83.1 million loan guarantee to support the sale of six
American-made locomotive parts, railroad cars, and mining equipment to the Iron
Ore Company of Canada (IOC). This transaction supported 500 U.S. jobs across a
range of American businesses in six states (Arkansas, Illinois, Missouri,
Tennessee, Virginia and Wisconsin).
“As global infrastructure investment increases, high quality, American-made
locomotive parts and mining equipment are in demand around the world,” said Fred
P. Hochberg, chairman and president of Ex-Im Bank. “Ex-Im is committed to
ensuring that the financing is in place to allow American companies to win a
growing share of these sales. These transactions bolster our manufacturing base,
while creating, supporting and sustaining good jobs in communities across the
United States.”
2011 was a record year in locomotive financing for Ex-Im Bank, with more than
$550 million supporting the sale of American-made locomotives to hard to reach
markets, including Kazakhstan and South Africa.
The U.S. companies involved in the IOC transaction include Electro-Motive
Diesel, Inc. (EMD) (LaGrange, Ill.), American Rail Car Industries Inc. (St.
Charles, Mo.), Freightcar America Inc. (Chicago, Ill.), P & H Mining
Equipment (Milwaukee, Wisc.), Komatsu America Corp. (Peoria, Ill.), and
Caterpillar, Inc. (Peoria, Ill.). Comerica Bank (Detroit, Mich.) is the
guaranteed lender.
“These companies build products that are built to last and in the process they
are building an American economy that is built to last – one that is driven by
manufacturing, exports and the most talented and productive workers in the
world,” added Hochberg.
This is the second order backed by Ex-Im Bank financing for IOC. The locomotive
parts, railroad cars, and mining equipment are being used to expand IOC’s
production in Labrador City, Newfoundland.
ABOUT EX-IM BANK
Ex-Im Bank is an independent federal agency that helps create and maintain U.S.
jobs by filling gaps in private export financing at no cost to American
taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers
nearly $1.9 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 $32.7 billion in total authorizations in FY 2011 -- an
all-time Ex-Im record. This total includes more than $6 billion directly
supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's
total authorizations are supporting an estimated $41 billion in U.S. export
sales and approximately 290,000 American jobs in communities across the country.
For more information, visit www.exim.gov.
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