August 12, 2014
MECHANIC FALLS, ME – Today, U.S. Senator Angus King (I-Maine) toured Auburn Manufacturing, Inc. (AMI) in Mechanic Falls – a manufacturer of high-performance textiles for extreme temperature protections – where he called on Congress to reauthorize the Export-Import Bank of the United States, the nation’s official export credit agency and a key export tool that helps Maine companies, like AMI, sell their products in international markets. Senator King will also tour Planson International Corporation later this afternoon, a global IT provider based in New Gloucester that also draws supports from the Ex-Im Bank.
“Imagine a government agency that returns a profit to the Treasury, helps American manufacturers sell their products abroad, and helps create jobs. That’s the Export-Import Bank,” Senator King said. “And for some reason that I absolutely cannot understand there are people in Washington who want to put it out of business after about eighty years of successfully helping American businesses across the country. We’ve got until September 30th to fix this, and I sure hope my colleagues in Congress can wake up to the fact that this is one government agency that really makes a difference and ought to be allowed to continue helping American jobs.”
The Ex-Im Bank serves as the official export credit agency of the United States and assists in financing the export of U.S. goods and services to international markets, which helps maintain and create jobs in the United States and contributes to a stronger national economy. If private banks are unwilling or unable, the Ex-Im Bank steps in and finances or insures the purchase of U.S. goods by foreign customers. It also helps U.S. companies stay competitive against their counterparts overseas that are financed by foreign governments.
Since 2007, the Ex-Im Bank has supported more than $264 million in exports from 13 companies in 12 communities in Maine. Nationally, it has supported nearly $189 billion in exports over the last five years. Unless Congress acts, however, the Ex-Im Bank’s charter is set to expire on September 30th of this year – 49 days from now – and Maine businesses, like AMI and Planson, Inc., stand to suffer as a result.
Auburn Manufacturing Inc. – a leader in fire and heat-resistant materials used as protection from extreme high heat in critical industries such as shipbuilding, nuclear power generation, mining and steelmaking – has utilized the bank’s export-promotion programs since 2009 and the bank has supported more than $3.35 million in export sales since 2007. In 2013, the bank helped support exports sales worth more than $605,000 while, so far in 2014, it has supported exports sales worth more than $688,000.
“The Export-Import Bank is especially important to small and medium-sized businesses, which account for nearly 90 percent of the Bank’s transactions. Our company, Auburn Manufacturing, Inc., is one of those,” said AMI President Kathie Leonard. “Insuring our export shipments with Ex-Im allows us to provide the same payment terms to our export customers as we do for our domestic customers. The result is more export business for us at a low administrative cost. I urge Congress to support a swift reauthorization for Ex-Im.”
Planson, Inc. – a global supplier of IT hardware, software, and services dedicated to international organizations, NGOs, government entities, and emerging market commercial clients – utilized a $1.5 million Ex-Im Bank revolving working capital loan guarantee in 2011 to export computers and software to Sudan for use during the historic referendum for Southern Sudan Independence. Planson, Inc. was named the Ex-Im Bank’s sub-Saharan Africa Exporter of the Year in 2011. In 2013, the bank helped support exports sales worth more than $749,000 while, so far in 2014, it has supported exports sales worth more than $455,000.
The Ex-Im Bank, which is self-supported through interest payment and fees, turns a profit for the American taxpayers, having transferred $1 billion in revenue to the U.S. Treasury in 2013. Since its creation nearly 80 years ago, language to extend the bank’s authority has been approved by Congress more than 40 times.
Its reauthorization has also been backed by business groups around the country, including the U.S. Chamber of Commerce, the National Association of Manufacturers and the Business Roundtable. Historically, the bank has received strong bipartisan support.
For more information on the impact of the Ex-Im Bank in Maine, click HERE.
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