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GE Scores Major Indonesia Locomotive Sale

GE Scores Major Indonesia Locomotive Sale

Los Angeles, CA – GE Transportation has signed a $94.3 million contract to supply 50 freight locomotives to Indonesian railway PTKAI.

The locomotives to be delivered in 2015 and 2016 will be built at the company’s manufacturing plant in Lawrence Park Township, Pennsylvania.

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 railroad reportedly plans to upgrade and modernize the nation’s rail infrastructure to better serve the country’s growing economy.

The General Electric-PTKAI deal was financed by a $94.3 million credit agreement reached with the U.S. Export-Import bank (EXIM).

The deal is expected to provide a significant boost to the region’s struggling economy.

One company that will gain from the PTKAI sale is Industrial Sales and Manufacturing Inc. (ISM), a small business headquartered in Erie, will supply numerous machined, fabricated and assembled components for the Indonesia-bound engines.

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 ISM President, Jim Rutkowski, Jr.

Earlier this year, a $563 million loan guarantee from EXIM helped finance the sale of 233 locomotives to South Africa’s TransNet. Delivery of those locomotives is expected to begin in mid-2015.


US Exports to ‘Sub-Saharan’ Africa Surge to $1.7 Billion

Washington, DC – Over the past ten months, the US Export-Import Bank (EXIM) has reportedly authorized a record $1.7 billion in financing to support exports of American-made products to sub-Saharan Africa.

This record-setting surge “has not only empowered U.S. small businesses to sell their products in global markets, but has also supported more than 10,000 American jobs which contribute to strengthening the U.S. economy,” the trade bank said.

The announcement was made as EXIM President and CEO Fred Hochberg participated in the US-Africa Leaders Summit that recently convened in Washington, DC.

EXIM also said it will pledge $3 billion in financing to support US exports to sub-Saharan Africa over the next two fiscal years and that it had recently signed a memorandum of understanding (MOU) with Angola “to strengthen collaboration on the financing of American-made exports” to the central African nation.

Two-thirds of the population of Sub-Saharan Africa lacks electricity and earlier this month, the bank approved a loan guarantee for $17 million to support long-term financing by the West African Development Bank (BOAD) for the Azito Power project in Cote D’Ivoire.

Financing for steam turbines used in the Azito Power project will support 40 manufacturing and engineering jobs in Schenectady, New York, and Bangor, Maine, said EXIM. The project is part of a long-term strategy to strengthen the region’s power capacity and, in turn, help to position economies there for growth, it added.

Three Louisiana small businesses benefit from EXIM’s $43 million financing of a liftboat destined for Nigeria.

The “Bellator” liftboat is a self-propelled vessel, 150-foot long by 118-foot wide, that lifts and suspends equipment and personnel up to the level of an offshore drilling platform.  About 300 employees of C.S. Liftboats, Inc., of Abbeville, Louisiana, together with Gulf Island Fabrications of Houma, Louisiana, will construct the high-tech vessel.

The Nigerian buyer also contracted for prefabricated liftboat-mounted modules for housing workers; these are built by Fiberglass Unlimited Inc. of Raceland, Louisiana.  This is Nigeria’s first purchase of a new, US-made liftboat system.

According to the bank, Pennsylvania employees of GE Transportation “will benefit from the bank-supported export of GE’s locomotives with Pennsylvania-made engines and components to Transnet in South Africa.”  In its recent transaction, EXIM authorized a $563.5 million loan guarantee to support financing for the sale of 293 locomotives being manufactured by GE Transportation.

EXIM “is firmly committed to equipping US exporters to realize the vast economic opportunities emerging throughout sub-Saharan Africa, which is home to seven out of 10 of the world’s fastest-growing markets,” said EXIM’s Hochberg. “Each transaction the Bank supports creates jobs for local US businesses and strengthens our relationship with a region that has a strong prospect for long-term economic growth.”