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EXIM Enables Washington Grain Company to Sell to Africa and Asia

Exporter/Customer: 
SCAFCO
Export Destinations: 
South Africa, Japan, and New Zealand
EXIM Bank Product: 
Export Credit Insurance and Medium-Term Loan Guarantee
Export Sales ($): 
67% of Total Sales

Grain silo

SCAFCO in Spokane is a dual-purpose company producing both steel stud and grain storage systems.  With office locations in six states and over 400 employees, SCAFCO designs and manufactures for 80 countries around the world and climbing.  With almost 60 years of engineering and manufacturing experience, SCAFCO has gained worldwide recognition for high quality products and great customer service.

EXPORT CHALLENGE

Originally a small company, SCAFCO realized how crucial their products would be to countries in sub-Saharan Africa, specifically their grain storage systems.  The only thing preventing SCAFCO from participating in global trade was the risk of nonpayment from African countries.

EXIM SOLUTION

In 2003, SCAFCO looked to EXIM for help exporting overseas.  With EXIM’s secured insurance, SCAFCO was able to export to South Africa, Japan, and New Zealand knowing they were protected in the case of nonpayment.  

RESULTS

Two-thirds of SCAFCO’s sales occur because of EXIM Bank.  Since 2013, EXIM supported $14 million in exports to foreign countries. SCAFCO has realized opportunities to grow that other companies ignored due to risks of foreign trade.

In April 2018, EXIM and SCAFCO work together for a small but important sale in Cambodia. Local rice miller Amru Rice will be the recipient of the first loan to Cambodia’s private sector that has been guaranteed by EXIM. The loan, amounting to $345,400, will be disbursed by Atrafin LLC, a U.S.-based banking institution, and will be used to purchase a grain storage system from SCAFCO. Some analysts hail the move as a positive step in diplomatic relations between the Kingdom and the United States. Alhough Amru Rice could access funding from Cambodia’s government-owned bank, it was unable to obtain term financing from local commercial banks. EXIM’s guarantee enabled the company to obtain credit on longer repayment terms for the purchase from a U.S. supplier. Jim McDonald, SCAFCO’s CEO, said the deal would not have been possible without EXIM’s support.

 

“We worked hard to win this (Cambodian) sale. EXIM’s support not only helped us to seal this deal but also has generated new interest in US manufactured equipment in Cambodia. And that’s good news for our employees in Washington.”
Jim McDonald, CEO