Quebec-based small business had difficulty meeting the financial demands at the outset of a contract it had won
OTTAWA—Export Development Canada (EDC), is providing Quebec-based Baultar Concept Inc. with a US$374,000 advanced payment bond.
As part of a contract with Italian rail engineering firm AnsaldoBreda S.p.A, Baultar was asked to provide a guarantee, but did not have the available capital to meet this requirement.
EDC provided the bonding guarantee to help secure the contract.
Baultar specializes in the design and manufacture of composite flooring, crew seating, lighting and other specialized accessories for the transportation industry. It will manufacture floors for trains that AnsaldoBreda is building for a major city in the U.S.
“EDC was able to help us win this contract with a financial instrument that we had never used before,” said Alexandre Taranto, Baultar’s Director of Finance. “This kind of product can be a game-changer for small companies, like ours, looking to grow their business abroad.”
Baultar’s transport solutions have been applied to more than 50 North American customers, including railcar and locomotive manufacturers as well as regional and national transportation authorities. Supported by their North American applications, the company is intensifying efforts to reach out to European and Asian markets.
“Anytime we can help a small Canadian company like Baultar secure a contract with an international giant like AnsaldoBreda, that’s job number one for us,” said Bruce Dunlop, EDC’s vice-president of Commercial Markets and Small Business. “Small companies are the heart of the Canadian economy, but it can be difficult for a smaller business to win contracts with large international buyers because of their financial demands. Our job is to provide solutions that make it easier for companies like Baultar to grow their business abroad.”
Baultar is a Quebec-based company located in the Eastern Townships that employs about 90 people. It provides transport solutions to companies in the U.S., France, Mexico, Australia, Taiwan and Brazil.