FOR IMMEDIATE RELEASE January 1, 2001
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The Export-Import Bank's Board of Directors on December 19, 2000, approved an $18 million comprehensive medium-term guarantee to support the $21.7 million sale of computer software, control systems and main drive power supplies by General Electric Co., Salem, VA, and various U.S. suppliers to Benxi Iron & Steel Co., Benxi, Liaoning, China.
The other U.S. suppliers on the transaction are CIC Co., Glenshaw, PA, and Carlen Controls Inc., Roanoke, VA.
The equipment will be used to modernize, and improve production at the Benxi hot strip steel mill.
The borrower and primary source of repayment is the Industrial & Commercial Bank of China, which is backed by the full faith and credit of the Chinese government.
The guaranteed lender is Deutsche Bank North America, New York, NY.
Ex-Im Bank found the transaction worthy of support after conducting a credit analysis, analyzing its economic impact on the U.S. economy, and determining that it complies with Ex-Im Bank's environmental guidelines and standards. The economic impact analysis concluded that the transaction would have a net positive impact on the U.S. economy.
GE said the transaction directly supports 300 union jobs at its 1,600-employee Salem, VA plant, and represents 10% of the Salem plant's production.
Had the Board declined to approve the financing of this transaction, the buyer stated that it would procure the equipment from French and German companies, thus permitting the same plant modernization, but with no benefit to U.S. exporters' jobs and profits.