Contact: Lynn Becker or Dawn Schueller (Kohl) (202) 224-5653
Zach Lowe or Katie Rowley (Feingold) (202) 224-5323
Deal clears environmental hurdle in 3 to 0 vote
WASHINGTON – U.S. Senators Herb Kohl and Russ Feingold announced that the Export-Import Bank of the United States met today to approve the environmental aspects of the deal between Reliance Power Ltd. in India and Milwaukee manufacturer Bucyrus International Inc. to purchase $600 million in mining equipment. The 3 to 0 vote is the first step in reversing a decision by the Ex-Im Bank last month to deny loan guarantees for Reliance, after Kohl and Feingold worked intensively with Ex-Im Bank Chairman Fred Hochberg and Bucyrus chief executive Tim Sullivan to allow the transaction to move forward. Chairman Hochberg notified the Senators on June 30th that the Ex-Im Bank would reconsider its decision if Reliance could present a new proposal including an increase in the amount of renewable energy produced in India, with a preference for American-made equipment.
“We did not want to see jobs in our state jeopardized and did all we could to be effective advocates for Bucyrus International’s workforce. Chairman Hochberg was open-minded and reasonable throughout this process, and Tim Sullivan worked tirelessly for his employees. The facts prevailed in this case, and we’re encouraged by the way the proposal is progressing and hopeful that it will lead to more good manufacturing jobs for our state,” Kohl said.
“I am pleased the Export-Import Bank Board approved the revised proposal, and kept this deal alive. With Wisconsin unemployment already near double digits, killing this deal would have only made a bad situation worse while effectively sending even more American jobs to China. When given a level playing field, American businesses and American workers can compete with anyone in the world. I will continue to be a strong advocate for Wisconsin’s manufacturing base, and for the level playing field that Wisconsin’s workers deserve,” Feingold said.
This is the first in a series of three votes the Ex-Im Bank will conduct before the Reliance/Bucyrus deal is finalized. Following this approval, there will be a vote – possibly in late August – on financial aspects of the deal, then a 35-day period where the deal is sent to Congress for review, and then a final vote by the Ex-Im Bank board in fall.
