EX-IM Bank Doubles MAG Working Capital to $20 Million

The increase enables the manufacturer to handle increased foreign demand for its products, which will increase sales and help maintain approximately 100 high quality manufacturing jobs related to exports.

Machine tool and automation systems supplier MAG IAS, LLC (Erlanger, KY), recently announced that its existing working capital loan guarantee from the Export-Import Bank of the United States (Ex-Im Bank) was doubled to $20 million. According to Dave Nowicki, the president of MAG Americas, the increase enables the manufacturer to handle increased foreign demand for its products, which will increase sales and help maintain approximately 100 high quality manufacturing jobs related to exports.

Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private sector export financing at no cost to American taxpayers. The Bank provides a variety of financing products, including working capital guarantees, export-credit insurance, and financing to help foreign buyers purchase U.S. capital goods and services. By charging fees and interest on all loan related transactions, Ex-Im Bank is self-sustaining. It is able to cover all operation costs and potential losses while also producing revenue. The Bank has generated $3.4 billion for U.S. taxpayers over the past five years.

“Our Ex-Im Bank working capital loan guarantee helps support $100 million in annual exports to customers in key markets including China, Brazil, and India,” said Nowicki. “The increase in the Ex-Im facility will enable us to pursue additional export sales, which in turn will secure our current manpower and support new hires. We have invested heavily in new products and infrastructure to continue growing our export business and we are very grateful for the additional support of Ex-Im Bank and our primary lender, Burdale Capital Finance, Inc.”

MAG employs 1,050 workers in the Americas and operates through several business divisions and subsidiaries with primary facilities in Michigan, Wisconsin and Kentucky. The company specializes in complete manufacturing solutions for metal cutting and composites applications. Key industrial markets served include aerospace, automotive and truck, heavy equipment, oil and gas, rail, solar energy, wind turbine production and general machining. MAG offers comprehensive lines of equipment and technologies including turning, milling, hobbing, grinding, honing, systems integration, composites processing, maintenance, automation and software, tooling and fluids, and core components.

“I am pleased that MAG will now be able to hire additional workers because of support from Ex‑Im Bank,” said Ex-Im Bank chairman and president Fred P. Hochberg. “Exports create, sustain, and save U.S. jobs, and it is vital that American companies continue to gain new global customers.” MAG’s loan facility will be administered by Burdale, an asset-based lender with operations in the U.S. and Europe.

In fiscal year 2010, Ex-Im Bank authorized a record high of approximately $24.5 billion in loans, guarantees and insurance (including more than $5 billion in authorizations for small businesses), supporting an estimated 230,000 American jobs. For the first half of this year, Ex-Im completed $13.4 billion in total authorizations. This supported $15.9 billion in exports and more than 115,000 U.S. jobs, a 14 percent increase in jobs supported over the first half of 2010. These strong financial results put the Bank on a path to its third consecutive record-breaking year.

www.mag-ias.com