Ex-Im Bank Finances Export of Farm Equipment to China
July 10, 2013
(Ex-Im Bank)
Washington, D.C. – 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.”
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