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Siemens Wins Sale to Korea and Maintains U.S. Jobs Backed by Ex-Im Bank Financing

FOR IMMEDIATE RELEASE July 25, 2010

Media Contact Name/Phone: 

Marianna Ohe (202-565-3200)

WASHINGTON, D.C. - Siemens Energy, Inc. has won a gas and steam turbine-generator sale to the Republic of Korea for a plant expansion, backed by a $134.2 million long-term loan guarantee from the Export-Import Bank of the United States (Ex-Im Bank). The sale will open opportunities for follow-on business for Siemens and other U.S. companies in South Korea's power sector, while keeping American workers on the job in Charlotte, N.C. and other U.S. cities.

Siemens was able to compete for and win this order due to its top-quality equipment and technology, and Ex-Im Bank's competitive financing, said Ex-Im Bank Chairman and President Fred P. Hochberg. We look forward to new opportunities to finance U.S. exports to Korea's power sector. This is an ideal example of how Ex-Im Bank can further President Obama's National Exports Initiative (NEI) aimed at doubling U.S. exports in five years. Companies like Siemens that continue to build a strong manufacturing presence in the U.S. will be key in helping strengthen American competitiveness and exports.

In line with its ongoing U.S. investment efforts, Siemens recently announced that it will build a new 60-Hz gas turbine production plant at its existing facility in Charlotte, N.C. As part of its expanded U.S. presence, Siemens will create a global production hub for manufacturing, servicing and other support functions related to the supply of its gas and steam power turbines and electricity generators to 60-Hz markets around the world.

The investment in our Charlotte manufacturing operation creates more than 1,000 jobs, increases our business with local diverse, smaller suppliers, and significantly expands our export capabilities, said Randy Zwirn, CEO of Siemens Energy, Inc. Our focus is on expanding our investment in the U.S., not only to better serve our largest market, but also to create a center of excellence and an export platform for other 60-Hz energy markets such as Canada, Mexico, Brazil, Saudi Arabia and South Korea.

Some of the smaller sub-suppliers that benefited from the export sale include Dome Chartering & Trading Corp., Annapolis, Md., and Gulf Logistics & Projects, Houston, Texas, both providers of transportation services.

Siemens provided four gas turbines, four generators and two steam turbine generators and related equipment and services to POSCO Power Co. Ltd. in Seoul to build and operate two new combined cycle facilities at its expanding Incheon Plant. Incheon's current four facilities have a total capacity of 1,800 megawatts to provide power to the Seoul area. The new Siemens natural gas-fired and steam turbines will generate an additional 1,252 megawatts of power at the plant. POSCO plans to expand its generating capacity to 4,800 megawatts by 2015.

The Private Export Funding Corporation (PEFCO) will provide a 12-year Ex-Im Bank-guaranteed loan to the National Agricultural Cooperative Federation (NACF) in Seoul, which will on-lend the funds to POSCO. POSCO is the largest independent power producer in South Korea. Siemens also has entered into a long-term service contract for the new Incheon facilities with a 24-year term.

Ex-Im Bank, an independent, self-sustaining federal-government agency, exists to fill gaps in export financing, strengthen U.S. export competitiveness, and create and maintain U.S. jobs. The Bank provides a variety of financing mechanisms, including working capital guarantees to help small and medium-sized U.S. businesses, export-credit insurance to protect against nonpayment by foreign buyers, and loan guarantees and direct loans to assist foreign buyers of U.S. goods and services.

In fiscal 2009, overall Ex-Im Bank financing totaled $21 billion. Ex-Im Bank authorized $554.7 million for U.S. exports to Korea during that period. In the first nine months of fiscal 2010 (through June 2010), Ex-Im Bank authorized $17.4 billion in loans, guarantees and insurance - more than total authorizations for all of fiscal 2009. For more information, see Ex-Im Bank's Web site at www.exim.gov.