MONTREAL—Eagle Hydraulic Components Inc. is increasing production at its two manufacturing plants in China.
Financing for the move is supported by a CAD$1.3-million loan guarantee from Export Development Canada.
Eagle is a Canadian-owned manufacturer of hydraulic cylinders that operates manufacturing facilities in Tianjin and Jiangyin provinces in China.
“This is a wonderful opportunity for us,” said Feng Wang, Eagle’s president. “This expansion allows us the flexibility to greatly increase our international sales volume.”
Feng said demand for their products has been growing steadily, to the point where Eagle struggled to satisfy demand.
In order to capitalize on these growth opportunities, Eagle had to invest in its Chinese subsidiaries, 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.
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 of financing and investments at 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.
EDC provides financing and insurance solutions to help Canadian companies of any size leverage international business opportunities.