FOR IMMEDIATE RELEASE June 30, 2011
Adrian Gianforti, (202) 565-3200
WASHINGTON, D.C. -- Retech Systems LLC, a medium-sized business located in Ukiah, Calif., was approved for a $16 million working capital loan guarantee by Export-Import Bank of the United States (Ex-Im Bank).
|Retech Systems LLC equipment being exported is a cold-hearth furnace. Photo courtesy of Retech Systems LLC.|
The guaranteed lender, East-West Bank of San Francisco, Calif., is providing ReTech the loan facility to support five export contracts to China and one export contract to Kazakhstan; all of which totaling in $48.6 million in contract value.
Over the past ten years, Retech Systems has grown from a small business to a medium-sized enterprise, more than doubling exports from about 20% to 60%, with Ex-Im Bank's support of over $110 million in working capital loan guarantees.
This illustrates the benefit and importance that Ex-Im Bank trade financing can aid small business growth such as Retech Systems, said Ex-Im Bank Chairman and President Fred P. Hochberg. We are committed to supporting U.S. companies complete transactions so they may expand in global markets and increase their workforce. Retech Systems has created jobs for the people of Mendocino County, California; this is what Ex-Im Bank is all about.
The company has increased its work force and plans to hire ten more manufacturing workers. The loan has primarily been used to collateralize letters of credit to back-up milestone payments, or work in progress payments, on large transactions up to $25 million. Export sales attribute to approximately 60% of overall sales for the company with primary markets in China and Kazakhstan.
ReTech Systems is a leading manufacturer of advanced thermal-processing equipment, such as vacuum furnaces. Retech designs and manufactures a wide range of customized processing equipment and systems for the production of specialty metals such as titanium and nickel alloy.
As more of our business with China customers grows, they are requiring us to provide financing on all of our products with payment upon shipment, said Retech Systems President Jim Goltz. Ex-Im has been absolutely critical to us for this since U.S. commercial banks will not accept foreign work in progress payments as collateral. We would not be as sustainable as we are today had it not been for Ex-Im Bank support.
Retech Systems LLC has a 48-year history and has completed over 400 contracts in more than 18 countries. The company is wholly owned by the Seco/Warwick S.A., a Swiebodzin, Poland manufacturing company. Seco/Warwick Corporation, of Meadville, PA, also wholly owned by Seco/Warwick S.A, is guaranteeing the loan on behalf of Retech.
Ex-Im Bank financing is only available to support the export of goods and services produced by American workers.
Ex-Im Bank's working capital loan guarantee enables U.S. exporters to obtain loans that facilitate the export of goods or services. These working capital loans, made by commercial lenders and backed by our guarantee, provide businesses with the liquidity to accept new business, grow international sales and compete more effectively in the international marketplace.
Small businesses interested in learning more about Ex-Im Bank's export financing products may contact their nearest regional office by dialing, toll-free, 1-800-565-EXIM and selecting option 2. Information about and registration for upcoming Ex-Im Bank events and training, is available online here. For more information, visit Ex-Im Bank's Web site at //www.exim.gov/.
Ex-Im Bank, an independent, self-sustaining federal agency, helps create and maintain American jobs by filling gaps in export financing and strengthening U.S. export competitiveness. The Bank has generated $3.4 billion for U.S. taxpayers over the past 5 years.
In the first eight months of fiscal year 2011, Ex-Im Bank approved $20.3 billion in total financing authorizations, supporting $26 billion in U.S. export sales. These sales will support more than 175,000 American jobs in communities across the country. This eight-month authorizations figure is the highest in the Bank's history. In fiscal year 2010, Ex-Im Bank approved $16.3 billion in this same time period, supporting $19.9 billion in U.S. export sales and supporting 137,000 American jobs.