EDC's CAD 1.3 M guarantee helps Montreal-based Eagle Hydraulic finance Chinese subsidiaries
(Montreal) – June 10, 2014
Export Development Canada (EDC) today announced that it has provided Eagle Hydraulic Components Inc. (Eagle) of Mirabel, Quebec, with a CAD 1.3 M guarantee that allowed the company to get the financing it needed to increase production at their Chinese subsidiaries.
EDC is Canada’s leading provider of financing, insurance and bonding for Canadian companies of all sizes that do business outside of Canada.
“This is a wonderful opportunity for us,” said Mr. Feng Wang, President of Eagle. “We are very thankful for the benefits EDC can offer to Canadian companies, as this expansion allows us the flexibility to greatly increase our international sales volume.”
Demand for their products has been growing steadily, to the point where Eagle struggled to maintain the incoming demand of their orders.
In order to capitalize on growing opportunities, Eagle decided to invest in its Chinese subsidiaries located in the provinces of Tianjin and Jiangyin China, but needed to secure financing for the expansion.
EDC provided a guarantee to Eagle’s corporate bank to allow the company to purchase all of the outstanding shares of the subsidiaries, creating a more lending-friendly structure for commercial banks.
The Executive Vice-President of Eagle, Mr. Chris Douglas, added “EDC has provided us with an effective solution that allows us to greatly improve upon our manufacturing processes and efficiencies in order to maintain our delivery requirements and provide the cost-effective, quality product our clientele demands.”
EDC is now currently working on providing financial solutions to help set up credit facilities for both subsidiaries.
“Eagle’s Chinese expansion is a great example of collaboration, where EDC, Eagle and their bank went the extra mile to find a way to get the right financing solution for the unique situation of our shared customer,” said Carl Burlock, Senior Vice-President, Financing and Investments, EDC.
“Whenever we see a medium-sized company that is making their way to becoming a large Canadian success story by growing their international sales, EDC’s job is to bring commercial solutions to the table to help them get there,” added Mr. Burlock.
More than 5,500 small- and medium-sized Canadian companies used EDC’s services in 2013 to undertake more than CAD 11.6 B in international sales and investments.
EDC has 17 offices across Canada, including Montreal,
Ville Saint Laurent, Quebec and Drummondville, to answer any questions
that Canadian companies may have about how to grow their international
sales, or how to make that first export sale.
Eagle Hydraulic Components Inc., formerly known as
HWF Hydraulic International Inc. manufactures standard and engineered
OEM hydraulic cylinders for the mobile equipment industry. The products
can be found on refuse & cement trucks, automotive lifts, waste
equipment, dump trailers and many other products. www.eagle-hydraulic.com
EDC is Canada’s export credit agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public- sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, visit www.edc.ca.
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