Exporter: Tooling and Equipment (TEI) – Livonia, Michigan
Ex-Im Bank Product: Single-Buyer Export Credit Insurance
Jobs Supported: Added 48
Tooling & Equipment International Corp. (TEI), a foundry tooling manufacturer, has used Ex-Im Bank's single-buyer export credit insurance to insure more than $15 million of its products exported to Mexico in 2010.
This coverage was critical in helping TEI sell to Nemak, S.A., largest aluminum automotive-component foundry in the world, located in Mexico.
This small business needed the insurance to be able to offer Nemak longer repayment terms and meet the foreign competition. With Ex-Im Bank's support, TEI was able to offer terms of up to 270 days to Nemak so it could compete against European companies. The single-buyer policy came at an especially critical time, since customer General Motors had gone into bankruptcy and the financial industry was in turmoil.
Exports comprised 50 percent of TEI's sales in 2008 and have now grown to 80 percent in 2010. The company employs 145 workers, adding 48 employees since receiving an Ex-Im Bank policy in September 2009. TEI is planning on a 50% increase in sales in 2011.
"Ex-Im Bank credit insurance played a fundamental role in allowing us to grow, recover, expand into foreign markets and become stronger than ever. We continue to bring laid-off employees back to work and expect to be a reliable partner of your institution," said Clifford Rothwell, Chairman and CEO.
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