Ex-Im Bank Approves Record-breaking Transaction to Support More Than 18,000 Jobs
September 27, 2012
(Ex-Im Bank)
Washington, D.C. – In its largest job-supporting authorization to date, the
board of the Export-Import Bank of the United States (Ex-Im Bank) has approved a
$4.975 billion direct loan to Sadara Chemical Company for the export of American
goods and services required in the construction of a petrochemical complex in
Jubail Industrial City II in the Kingdom of Saudi Arabia.
According to estimates calculated from U.S. Census Bureau statistics, the
financing will support approximately 18,400 American jobs, 12.5 percent of which
come directly or indirectly from small businesses, in 13 states. Among the
approximately 70 American exporters involved in the transaction are KBR, ABB
Inc., and The Dow Chemical Company. More than 20 of the exporters are small
businesses.
"Today the board approved a record-breaking transaction that will support more
than 18,000 American jobs across 13 states," said Ex-Im Bank Chairman and
President Fred P. Hochberg. "No other transaction in Ex-Im Bank's storied
history has supported as many American jobs as this transaction, and no other
single transaction has provided so much support to small businesses.
Furthermore, the manufacturing jobs supported by this transaction will in turn
support other jobs, allowing the benefits of the transaction to reverberate
throughout key corners of the U.S. economy."
Located in the Eastern Province of Saudi Arabia, the mega-project will develop
significant downstream capabilities for production in the fast-growing markets
of the Middle East. Sadara will be the largest integrated petrochemical complex
ever constructed in a single phase and will comprise of 26 process units
producing more than 3 million metric tons of ten major product families of
chemical products and specialty plastics per year. The complex will become
operational in 2016, and its products will be available in markets throughout
the world.
Sadara Chemical Company, organized and existing under the laws of the Kingdom of
Saudi Arabia, is a joint venture developed by the Saudi Arabian Oil Company
(Saudi Aramco) and Dow.
Headquartered in Midland, Mich., The Dow Chemical Company, and its consolidated
subsidiaries (Dow), delivers a broad range of technology-based products and
solutions through the production, marketing, and sales of specialty chemicals
and advanced materials and plastics. Dow operates manufacturing sites in 36
countries and employs approximately 52,000 people.
"This historic investment is an enormous opportunity – to drive growth and
create thousands of jobs here in the U.S. The surest way to grow our economy is
to make high-value, innovative products in America, and to bring them to market
all over the world," said Andrew N. Liveris, chairman and chief executive
officer of The Dow Chemical Company. "Ex-Im Bank's action will allow U.S.
manufacturers to do just that – to sell equipment and services to the largest
industrial complex ever built in a single phase – namely, Sadara. Thanks to the
manufacturing sector's unmatched multiplier effect, this will create thousands
of additional jobs across the entire economy."
Saudi Aramco, wholly owned by the Saudi government and based in Dhahran, Saudi
Arabia, manages the largest proven reserves of conventional crude oil in the
world and the fourth largest gas reserves. The company was incorporated in the
early 1940s and employs approximately 55,000 people.
The loan marks Ex-Im Bank's second petrochemical transaction in Saudi Arabia.
Other export-credit agencies participating in the transaction include Export
Credits Guarantee Department of the United Kingdom, Hermes of Germany, Compagnie
Française d'Assurance pour le Commerce Extérieur of France, the Korea
Export-Import Bank, and the Korea Trade Insurance Corporation.
Aquatech International, a Canonsburg, Pa.-based small business engaged in the
transaction, will provide water-treatment equipment for the complex. The company
specializes in zero-liquid-discharge treatment, water reuse, and desalination.
"We at Aquatech are very pleased that the board of directors of Ex-Im Bank has
approved the financing for the Sadara project," said Venkee Sharma, president
and CEO of Aquatech. "This particular project has helped Aquatech to retain
50-plus jobs at its Canonsburg, Pa. facility, as well as numerous jobs within
our supply chain. Ex-Im Bank has had a positive impact on our continued growth
and job creation for the last two decades."
Saudi Arabia accounted for $2 billion of Ex-Im Bank's credit exposure as of the
end of FY 2011, and during the same year the Bank authorized $1.4 million in
financing for the export of American goods and services to the Kingdom.
In FY 2012 to date (the present transaction excluded), Ex-Im Bank has approved
approximately $3.9 billion worth of authorizations in the Middle East and North
Africa.
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