Tim Sullivan, President and CEO of the Wisconsin-based manufacturer Bucyrus, was on CNBC’s Squawkbox this morning to discuss the Export-Import Bank’s handling of the loan guarantees to support Bucyrus’ sale of mining equipment to build a mine and power plant in India. The Ex-Im Bank rejected the financing because the Indian project involved coal, in the process surrendering potentially $600 million in sales to foreign competitors and costing 1,000 U.S. jobs. As we reported last week, the decision provoked intense reaction from industry and elected officials, and the Ex-Im Bank is reconsidering its decision.
I think this will get done. There has to be a memorandum of understanding with our customer that hopefully will be completed this week, and then next Thursday it will go back for a revote. I am confident, I think, because of the situation today that this deal will get down.
We’ve got four more pending, though, and those deals will not get done with the current environmental policies at U.S. Eximbank.
And later in the interview:
I have a standing invitation from [Ex-Im Bank] Chairman Hochberg to come to Washington. We’ve got to talk about the follow-on. We have to get these policies aligned with U.S. technology, not Chinese technology. Otherwise, we’re out.
And you know, if you look at what’s in the marketplace today, there’s 250 gigawatts of coal-fired power plants being constructed. That’s a billion tons of coal. We have a trillion tons of reserves of coal in 77 countries around the world. We’re going to burn coal. This puts us on the sidelines. It basically puts us out of business, and it tells manufacturers like myself, don’t expand in the United States. If you’re going to expand, go to some of the countries that have that capability to back your products.
- Milwaukee Journal-Sentinel, “Bucyrus chief dug deep for support “
- Milwaukee Journal-Sentinel, “Bank’s reversal lifts shadow over Bucyrus“
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