National Association of Manufacturers: Urges Export-Import Bank to reverse decision

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Jeff Ostermayer (202) 637-3090

Recent Decision on Manufacturing Mining Equipment Will Cost Jobs

WASHINGTON, D.C., June 28, 2010 – The National Association of Manufacturers (NAM) President John Engler today spoke with Chairman Fred Hochberg of the Export-Import Bank, urging him and his fellow board members to reverse the recent decision to deny loan guarantees for the sale of U.S.-manufacturing mining equipment to an Indian company, Reliance Power Ltd.

At risk is approximately $600 million in equipment sales for the Wisconsin-based Bucyrus International Inc. and its suppliers, potentially causing the loss of as many as 1,000 jobs in the United States.

Engler issued the following statement on the Export-Import Bank’s decision:

“This is a case of ideology winning over common sense and one thousand American jobs. The mine will be dug and the plant will be built. Advanced technology will be put to use to minimize the environmental impact. The only question is whether U.S. companies will supply the equipment or if Reliance Power will turn to non-U.S. suppliers.

“In Wisconsin and all across the country, American workers think the answer to that question should be clear.

“Export-Import Bank officials say the bank has limited options because a Congressional mandate and past litigation require it to consider environmental factors. Even if so, the facts in this case argue strongly for financing the deal.

“Further, if there is indeed a law that prevents the bank’s approval based on narrow environmental concerns, then Congress should immediately act to provide the bank more flexibility so it can finance the project and support U.S. jobs.

“Supporters will claim that the bank struck a blow for the environment, but it’s U.S. manufacturing employees who will feel the pain. The Export-Import Bank needs to change the policy, correct the mistake and get it right.”