Siemens sale to South Korea will save U.S. jobs

WASHINGTON, July 27 (UPI) -- A Siemens Energy, Inc. sale of generators to South Korea is a timely rescue package for jobs at several U.S. manufacturing units, officials said.

Siemens Energy, Inc. announced it has won a gas and steam turbine-generator sale to South Korea for a plant expansion, backed by a $134.2 million long-term loan guarantee from the U.S. Export-Import Bank.

The sale will open opportunities for follow-on business for Siemens and other U.S. companies in South Korea's power sector, while keeping American workers on the job in Charlotte, N.C., and other U.S. cities, officials said.

"Siemens was able to compete for and win this order due to its top-quality equipment and technology, and Ex-Im Bank's competitive financing," said Ex-Im Bank Chairman and President Fred P. Hochberg.

He said the Ex-Im Bank was looking to new opportunities to finance U.S. exports to South Korea's power sector. This is an example of how Ex-Im Bank can further the Obama administration's "National Exports Initiative" aimed at doubling U.S. exports in five years, he said.

"Companies like Siemens that continue to build a strong manufacturing presence in the U.S. will be key in helping strengthen American competitiveness and exports," Hochberg said.

In line with its ongoing U.S. investment efforts, Siemens recently announced that it will build a new 60-Hz gas turbine production plant at its existing facility in Charlotte, N.C. As part of its expanded U.S. presence, Siemens will create a global production hub for manufacturing, servicing and other support functions related to the supply of its gas and steam power turbines and electricity generators to 60-Hz markets around the world.

"The investment in our Charlotte manufacturing operation creates more than 1,000 jobs, increases our business with local diverse, smaller suppliers and significantly expands our export capabilities," said Randy Zwirn, chief executive officer of Siemens Energy, Inc.

"Our focus is on expanding our investment in the U.S., not only to better serve our largest market, but also to create a center of excellence and an export platform for other 60-Hz energy markets such as Canada, Mexico, Brazil, Saudi Arabia and South Korea."

Some of the smaller suppliers that benefited from the export sale include Dome Chartering and Trading Corp., Annapolis, Md.; and Gulf Logistics & Projects, Houston, both providers of transportation services.

Siemens provided four gas turbines, four generators and two steam turbine generators and related equipment and services to POSCO Power Co. Ltd. in Seoul to build and operate two new combined cycle facilities at its expanding Incheon plant.

Incheon's current four facilities have a total capacity of 1,800 megawatts to provide power to the Seoul area. The new Siemens natural gas-fired and steam turbines will generate an additional 1,252 megawatts of power at the plant. POSCO, the largest independent power producer in South Korea, plans to expand its generating capacity to 4,800 megawatts by 2015.

The Private Export Funding Corporation will provide a 12-year Ex-Im Bank-guaranteed loan to the National Agricultural Cooperative Federation in Seoul, which will then lend the funds to POSCO. Siemens also has entered into a 24-year service contract for the Incheon facilities.

Ex-Im Bank, an independent, self-sustaining federal-government agency, exists to fill gaps in export financing, strengthen U.S. export competitiveness, and create and maintain U.S. jobs.

In fiscal 2009, overall Ex-Im Bank financing totaled $21 billion. The bank authorized $554.7 million for U.S. exports to South Korea during that period. In the first nine months of fiscal 2010 (through June 2010), Ex-Im Bank authorized $17.4 billion in loans, guarantees and insurance.