Australian Government export credit agency, Export Finance and Insurance Corporation , is helping Sydney-based manufacturer Fitch Metals Engineering with a US$8.25 million contract to supply coil coating equipment to Brazil.
Fitch Metal Engineering won a competitive international tender to design, manufacture and install a high-speed, state-of-the-art colour coil coating line for Brazilian company Tekno S.A., a major South American coil coater.
Export Finance and Insurance Corporation is providing two advance payment bonds, each worth US$825,000, to secure advance payments by Tekno to Fitch Metal Engineering under the export contract.
"Our contract with Tekno is one of our larger export orders and involves several shipments of equipment," said Fitch Metal Engineering’s founder and owner, Mike Fitch.
"By enabling Tekno to make advance payments to us, Export Finance and Insurance Corporation’s bonding support is helping us secure the substantial working capital we need to undertake the contract," adds Fitch.
Even with more than 14 years experience in exporting innovative coil coating technology to customers in the Americas, Europe, Asia, the Middle East and South Africa obtaining sufficient working capital for large export contracts can be a challenge for a small and medium-sized exporter.
"We’re delighted to have the opportunity to help Fitch Metal Engineering continue to grow its export business with our financial services," said Andrea Govaert, EFIC’s Executive Director, SME.