East-West Bank of San Francisco and Ex-Im Bank Provide Financing to Small Business as it Grows to Medium-Size Enterprise
July 1, 2011
(Ex-Im Bank)
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).
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 http://www.exim.gov/.
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