WASHINGTON, Oct. 15, 2014 (ANTARA/PRNewswire) -- Today Export-Import Bank of the U.S. (Ex-Im Bank) Chairman and President Fred P. Hochberg, GE Transportation President and CEO Russell Stokes, and Indonesia's PT Kereta Api (PTKAI) of Jakarta President and CEO Ignasius Jonan signed a credit agreement totaling $94.3 million to finance the export of 50 General Electric Company locomotives to Indonesia.
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Ex-Im Bank's credit will support approximately 700 U.S. jobs up and down the supply chain, primarily in Erie, Pa. These estimates are derived from Department of Commerce and Department of Labor data and methodology.
"This is a perfect example of the sort of win-win situation that happens when countries buy American," said Hochberg. "Ex-Im is proud to facilitate transactions like this one, which will support 700 quality jobs here in America even as it empowers Indonesia to build an enduring, reliable transportation infrastructure on the foundation of quality U.S. products."
PTKAI is the national railway of Indonesia and operates a fleet of more than 300 locomotives that provide both freight and passenger services on the islands of Java and Sumatra. The company plans to upgrade and modernize the nation's rail infrastructure to better serve Indonesia's growing economy.
"Ex-Im Bank's financing of this transaction demonstrates the importance of public and private sector leadership," said Stokes. "The Bank's financial support is a critical part of GE's ability to win foreign sales and deliver for our global customers like PTKAI. With $94.3 million in financing to PTKAI now secured, GE will build 50 locomotives in Pennsylvania and deliver them next year to Indonesia, sustaining good jobs in the U.S. and abroad."
Industrial Sales and Manufacturing Inc. (ISM), a small business headquartered in Erie, will supply numerous machined, fabricated and assembled components for the GE locomotives. ISM fabricates, assembles, tests, and finishes products found around the world in applications ranging from transportation, mining, agriculture, and recreation to medical devices and renewable energy.
"As a contract manufacturer supplying original equipment manufacturers, Ex-Im Bank's support of global customers of companies like GE is vital to our own company, our community, and the stability and growth of the broader economy in the United States," said Jim Rutkowski, Jr. of Industrial Sales & Manufacturing, Inc. of ISM. "Industrial Sales & Manufacturing, Inc. sees Ex-Im Bank's financial support for international sales as a vital component in our continued success in getting long-term American-made assets in place around the world."
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that supports and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working capital guarantees and export credit insurance, to promote the sale of U.S. goods and services abroad. Ninety percent of its transactions directly serve American small businesses.
In fiscal year 2013, Ex-Im Bank generated more than $1 billion for U.S. taxpayers while approving more than $27 billion in total authorizations. These authorizations supported an estimated $37.4 billion in U.S. export sales, as well as approximately 205,000 American jobs in communities across the country.