US group wins $35m funding for Iraq project
Washington, November 13, 2012
US-based Devco, a chemical-engineering firm, has won approval from the Export-Import Bank of the United States (Ex-Im Bank) for a $35 million loan for the design and construction of a sulphur purification plant in Mosul, Iraq.
The Ex-Im Bank voted to guarantee the $35 million JP Morgan Chase loan in a major financing that will support approximately 380 US jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology.
"This significant transaction not only supports American small-business jobs here at home, but it also supports the sulphur and agricultural industries in Iraq," remarked Ex-Im Bank chairman and president Fred P. Hochberg.
"By providing a working-capital guarantee, Ex-Im Bank is demonstrating that we are always looking to support US exporters and grow our economy by creating quality jobs here at home."
Devco utilizes as part of its design a modular concept that maximizes labour concentration in a fabrication-shop environment. The company will design, procure, fabricate, and pre-assemble the plant in the US and then ship the plant in modular form to Iraq.
Upon arrival, Al Hawarth, an Iraqi-owned company, will re-assemble the facility outside the riverside city of Mosul.
The plant will process sulphur from underground deposits utilizing a priority process called the submerged combustion distillation, developed by CTI Consulting of New Orleans.
The Al-Mishraq Sulphur State Company, which will own and operate the facility, plans to retail the purified sulphur output in Iraq for domestic use. Sulfur is a key ingredient in fertilizer and therefore is in demand within the agricultural sector.
"We are proud to support Devco in this important transaction which will create hundreds of American jobs," said Lillian Labbat, managing director, JP Morgan.
"We see exports as a key driver of economic expansion. Our export finance capabilities and global footprint are what enable us to help small businesses to compete and to succeed," he added.
Doug Houston, the owner and CEO of Devco said, "We are pleased with the support being provided to us by Ex-Im Bank on this critical project. Projects of this magnitude allow us to extend and expand our technical staff, while supplying significant job opportunities for our fabrication partners in several locations throughout the US."
"This project heightens the company's opportunity to provide additional US-based technology and equipment solutions for Iraq," he added.-TradeArabia News Service