Australia Invests $2.3 Million For Sydney Based Bronx International
Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, has issued a US$2.3 million advance payment bond to support a new contract secured by Sydney-based exporter Bronx International Pty Ltd (Bronx).
Bronx, a specialist in providing galvanising and paint lines, has won a contract for US$9.1 million to upgrade a continuous galvanising line for Ternium Guatemala S.A., a subsidiary of Ternium S.A, a leading steel company in Latin America.
Ternium Guatemala S.A. has been Bronx’s client for around 20 years. The equipment Bronx is now supplying is an upgrade to a line it provided to the company in 1992.
The galvanising line applies a controlled coating of zinc to the surface of cold rolled steel, protecting it against corrosion.
Under the contract, Bronx will supply some new machines and refurbish others to ensure that the line uses current technology for coating and control.
The US$2.3 million advance payment from the buyer which is secured by EFIC’s bond will enable Bronx to start work on the contract.
EFIC issued the advance payment bond under an existing A$5 million bonding line with Bronx. EFIC’s bonding facility has also supported Bronx’s contracts in the Ukraine, in Argentina (with another company in the Ternium S.A. group), and recently in Turkey.
‘With EFIC’s bonding line, we have confidence that when we win an export contract, we can meet our customer’s bonding requirements,’ said Rod Sawyers, managing director of Bronx.
‘It also means our working capital is freed up to deliver on the contract, as we don’t have to provide full cash security for the value of the bonds’, said Mr Sawyers.
‘EFIC is happy to help Bronx continue a very long and successful relationship with this buyer,’ said Andrea Govaert, EFIC’s Executive Director, SME.
‘Bonds are a standard requirement of export contracts, especially in construction, engineering and manufacturing, but they often present a major hurdle for SME exporters. As a result, bond facilities continue to be a key part of the support that EFIC provides to SMEs’, said Ms Govaert.
Topics: 2010, advance payment, Argentina, Australia, Bronx, Bronx International Pty Ltd, business, Central America, continuous galvanising line, contract, corrosion, economic development, economic growth, Economy, EFIC, employment, Export Credit Agency, Export Finance and Insurance Corporation, Governance, government, Guatemala, investment, jobs, Latin America, moniter, monitor, news, society, steel, Sydney, technology, Ternium Guatemala S.A., Ternium S.A., trade, Turkey, Ukraine
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