Ex-Im Bank Signs Credit Agreement to Finance Export of American-made Locomotives to Indonesia
October 15, 2014
(Ex-Im Bank)
Deal Supports 700 U.S. Jobs
Washington, D.C. – Today Export-Import Bank of the U.S. (Ex-Im Bank) Chairman
and President Fred P. Hochberg, GE Transportation President and CEO Russell
Stokes, and Indonesia's PT Kereta Api (PTKAI) of Jakarta President and CEO
Ignasius Jonan signed a credit agreement totaling $94.3 million to finance the
export of 50 General Electric Company locomotives to Indonesia.
Ex-Im Bank's credit will support approximately 700 U.S. jobs up and down the
supply chain, primarily in Erie, Pa. These estimates are derived from Department
of Commerce and Department of Labor data and methodology.
"This is a perfect example of the sort of win-win situation that happens when
countries buy American," said Hochberg. "Ex-Im is proud to facilitate
transactions like this one, which will support 700 quality jobs here in America
even as it empowers Indonesia to build an enduring, reliable transportation
infrastructure on the foundation of quality U.S. products."
PTKAI is the national railway of Indonesia and operates a fleet of more than 300
locomotives that provide both freight and passenger services on the islands of
Java and Sumatra. The company plans to upgrade and modernize the nation's rail
infrastructure to better serve Indonesia's growing economy.
"Ex-Im Bank's financing of this transaction demonstrates the importance of
public and private sector leadership," said Stokes. "The Bank's financial
support is a critical part of GE's ability to win foreign sales and deliver for
our global customers like PTKAI. With $94.3 million in financing to PTKAI now
secured, GE will build 50 locomotives in Pennsylvania and deliver them next year
to Indonesia, sustaining good jobs in the U.S. and abroad."
Industrial Sales and Manufacturing Inc. (ISM), a small business headquartered in
Erie, will supply numerous machined, fabricated and assembled components for the
GE locomotives. ISM fabricates, assembles, tests, and finishes products found
around the world in applications ranging from transportation, mining,
agriculture, and recreation to medical devices and renewable energy."
As a contract manufacturer supplying original equipment manufacturers, Ex-Im
Bank's support of global customers of companies like GE is vital to our own
company, our community, and the stability and growth of the broader economy in
the United States," said Jim Rutkowski, Jr. of Industrial Sales &
Manufacturing, Inc. of ISM. "Industrial Sales & Manufacturing, Inc. sees
Ex-Im Bank's financial support for international sales as a vital component in
our continued success in getting long-term American-made assets in place around
the world."
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