Highlights Recent $1 Billion MOU Signing with Brazilian Government to Open Investment Horizons, EXIM’s Program on China and Transformational Exports, COVID-19 Economic Recovery Tools, Importance of U.S. Supply Chain Jobs
FOR IMMEDIATE RELEASE October 31, 2020
Office of Communications (202-565-3203)
PITTSBURGH — Export-Import Bank of the United States (EXIM) President and Chairman Kimberly A. Reed yesterday visited Pittsburgh, Pennsylvania, meeting with executives at Westinghouse Electric Company (Westinghouse) and United States Steel Corporation (U. S. Steel). In both meetings, Chairman Reed and the executives discussed the vital role the companies play in supporting American jobs through the export of U.S. made products and services.
Chairman Reed toured Westinghouse’s nuclear energy facility in suburban Warrendale, home to the company’s global instrumentation and control production and testing facility, where she met with senior executives including:
- Patrick Fragman, President and CEO.
- David Howell, President, Americas Operating Plant Services.
- Terry Rudek, Vice President, Engineered Systems and Solutions.
- Tom Weir, Vice President, Plant Solutions.
EXIM Special Advisor Edward Newburn also participated.
During their meeting, Chairman Reed highlighted key outcomes of her recent U.S. government delegation visit to Brazil, where Chairman Reed and Brazil’s Minister of the Economy, Paulo Guedes — alongside President Jair Bolsonaro of Brazil and U.S. National Security Advisor Robert O’Brien — signed a $1 billion memorandum of understanding to promote U.S. investment in key Brazilian sectors including nuclear power. Chairman Reed also discussed EXIM’s Program on China and Transformational Exports, which could allow for more competitive financing of U.S. nuclear power projects around the world.
“In many regions of the world, nuclear power is crucial to ensuring a reliable, affordable, and emissions-free source of electricity. Today, I saw amazing innovation made possible by a talented Westinghouse workforce, and I thank President and CEO Patrick Fragman and the entire team for our insightful discussion,” said Chairman Reed. “U.S. companies have often been unfairly crowded out of this market for years, but now that EXIM is fully reopened, U.S. exporters such as Westinghouse can better compete with state-supported rivals in China, Russia, and other countries that aggressively utilize export financing to gain market share in the nuclear energy sector.”
“We were pleased to meet with Chairman Reed and continue our conversation regarding the importance of the Export-Import Bank for Westinghouse’s future business opportunities,” said Westinghouse President and CEO Patrick Fragman. “We appreciate the efforts of Chairman Reed and the Bank to level the playing field for nuclear technologies as we work to bring carbon-free energy to customers around the world.”
Chris Srock, Westinghouse Director, Global Instrumentation and Control (I&C), describes to EXIM Chairman Reed what is involved in the production of cabinets that form the backbone of a nuclear power plant. Westinghouse’s world-class production facility in Warrendale provides a variety of I&C services for new and operating plants across the world.
Later in the day, Chairman Reed visited U. S. Steel headquarters in downtown Pittsburgh, where she met with senior executives including:
- John Foody, Vice President and Chief Procurement Officer.
- Arne Jahn, Treasurer and Chief Risk Officer.
Participating from EXIM were Chief Banking Officer Stephen Renna (by phone) and Special Advisor Edward Newburn.
During the meeting, Chairman Reed discussed two recent EXIM transactions involving U. S. Steel that utilize EXIM’s COVID-19 economic recovery measures. On September 9, following a Congressional notification period, EXIM’s Board of Directors unanimously approved the transactions totaling $450 million, which could support approximately $1 billion in existing and future export sales from U. S. Steel along with an estimated 1,600 American jobs as calculated by EXIM at U. S. Steel and its suppliers in 17 states throughout the country and the District of Columbia.
“We at EXIM were swift to focus on COVID-19 economic recovery measures, as, now, more than ever, U.S. companies — and our great U.S. supply chains — need EXIM to compete in the global marketplace,” said Chairman Reed. “Growing up in neighboring West Virginia, I know how important the steel industry is to the region and our country, and I very much appreciated our conversation at U. S. Steel today. EXIM’s recent transactions demonstrate our agency’s commitment to supporting American jobs through exports, especially in industries uniquely affected by the global pandemic.”
“Through the programs EXIM enabled, we are pleased to be able to provide our suppliers with greater financial flexibility and payment terms,” said U. S. Steel Vice President and Chief Procurement Officer John Foody. “In the challenging circumstances of the COVID-19 related economy, the greater financial certainty and opportunities provide meaningful assurance of our suppliers’ future success. This in turn contributes to the increased employment and economic activity we all want to see.”
“EXIM’s COVID modifications to its Working Capital Loan and Supply Chain Finance Guarantee Programs are intended to broaden access to liquidity for exporters and their supply chains. To date, EXIM has helped inject more than $2 billion of liquidity into the exporter community including, importantly, the $450 million through U. S. Steel,” said Stephen Renna, EXIM Chief Banking Officer.
EXIM Chairman Kimberly Reed holding iron-ore pellets with (L-R) U. S. Steel’s John Foody and Arne Jahn.
In the first transaction, EXIM’s Board of Directors unanimously approved a 95 percent guarantee of a $250 million working capital loan facility under EXIM’s Working Capital Guarantee Program from PNC Bank, N.A., in Pittsburgh, Pennsylvania to U. S. Steel. EXIM’s guarantee of the 11-month loan facility would allow U. S. Steel to monetize a portion of the value of three of its existing contracts to supply iron-ore pellets to buyers in North America and Asia. EXIM’s guarantee is needed to enable the lender to accept the risks of the foreign contracts and U. S. Steel to fulfill the supply contracts. The potential transaction is estimated by EXIM to support an estimated 900 U.S. jobs in Minnesota and other states.
In the second transaction, EXIM’s Board unanimously approved a 95 percent guarantee of a $200 million supply chain finance facility from LSQ Funding Group, L.C., in Orlando, Florida, and Huntington National Bank, N.A. (HNB), in Columbus, Ohio, to U. S. Steel under EXIM’s Supply Chain Finance Guarantee Program. EXIM’s guarantee of the 12-month facility would support the purchase of accounts receivable due from U. S. Steel to 50 to 60 of its U.S. suppliers in approximately 16 states and the District of Columbia. LSQ Funding Group would enter into receivables purchase agreements with U. S. Steel suppliers under LSQ’s existing supply chain finance program, and HNB would further purchase the receivables from LSQ. EXIM would guarantee payment of the receivables, thereby extending its support to U. S. Steel and its network of suppliers across the United States.
On Friday morning, Chairman Reed was in northwestern Pennsylvania to present an EXIM 2020 Exporter of the Year award to AcousticSheep LLC, a minority- and woman-owned small business with 25 employees that manufactures headphones designed for sleeping and running, and toured the company’s production facilities in Erie, Pennsylvania.
EXIM is an independent federal agency that promotes and supports American jobs by providing competitive and necessary export credit to support sales of U.S. goods and services to international buyers. A robust EXIM can level the global playing field for U.S. exporters when they compete against foreign companies that receive support from their governments. EXIM also contributes to U.S. economic growth by helping to create and sustain hundreds of thousands of jobs in exporting businesses and their supply chains across the United States. In recent years, approximately 90 percent of the total number of the agency’s authorizations has directly supported small businesses. Since 1992, EXIM has generated more than $9 billion for the U.S. Treasury for repayment of U.S. debt.
For more information about EXIM, please visit www.exim.gov.