The competitive $7 million
medium-term loan guarantee motivated DNM Textiles for Spinning, Weaving
and Dyeing (DN., Damietta, Egypt, to buy the Morrison equipment to
establish a new denim production plant within the Damietta Free Zone.
DNM is owned by Eroglu Holding, Istanbul, Turkey. The Bank of New York
Mellon is the guaranteed lender on the transaction. The Turkish
guarantor is Asya Katilim Bankasi A.S.
“Ex-Im Bank’s guarantee helped the
customer justify the scale of the project,” said Morrison President
John Morrison White, Jr., great grandson of the company’s founder. “We
are exporting two different textile manufacturing systems to the
Egyptian plant at one time. Usually a client orders a single system and
then a year later maybe orders again. This double-size sale will have a
big impact on our business.”
..Before the sale to Egypt, Morrison,
which now has about 95 employees, had to lay off about 10 percent of
its workforce last year, mainly office workers rather than its plant
workers, to stabilize the company in the face of declining exports.
..”Usually 90 percent of our business
is exports, but last year exports accounted for about 40 percent of the
total,” White said. “We’ll probably double exports this year, and
maintain or increase our workforce.”
..”We’re proud that our competitive
financing helped keep U.S. workers on the job at Morrison Textile
Machinery and other U.S. small businesses,” said Ex-Im Bank Chairman
and President Fred P. Hochberg. “Such export financing enables American
companies to sell their high-quality products in growing markets such
as Egypt, and can lead to follow-on business. We are ready to support
that growth.”
..Eroglu Holding also is the owner of
Eroglu Garment Manufacturing com. and Collin’s brand, the largest retail
chain in Turkey and Russia according to Eroglu Holding CEO Murat
Karadut. With this investment Eroglu Holding will accomplish the
vertical integration from cotton field to consumer ..Ex-Im Bank is the official
export-credit agency of the United States. The independent federal
government agency helps to create and maintain U.S. jobs by financing
the sales of U.S. exports, primarily to emerging markets throughout the
world, providing loan guarantees, export-credit insurance and direct
loans.
.”Ex-Im Bank’s export loan
authorizations more than doubled to $13.2 billion during the first half
of the current fiscal year. That is a 125 percent increase over the
record $5.9 billion authorized during the same period in Fiscal Year
2009. Small business export loan authorizations increased half a
billion dollars during the same period to $2.3 billion, 28 per cent
greater than the first half of FY2009. An estimated 109,000 American
jobs have been supported by the Bank’s financing this fiscal year to
date, compared to about 61,000 jobs supported during the same period
last fiscal year. More information is available on the Bank’s web site
at
Date:5/5/2010
Source:Al Masry Al Yom NewsPaper