More US companies are considering moving plants overseas given concerns about the shutdown of the US Export-Import Bank, the largest US aerospace trade group said, a day after General Electric Co announced plans to build a $400 million turboprop engine plant in Europe.
David Melcher, president of the Aerospace Industries Association, said he expected similar announcements from Boeing and other companies, which are already losing business due to lack of access to US trade credits.
"Any company that has traditionally depended on EXIM financing as part of their strategy to sell internationally will start to hedge their bets with thoughts of moving their business overseas where they can get that support from a different government," Melcher told Reuters in an interview.
Melcher said AIA, which lobbies Congress on behalf of its member companies, was actively engaged in the fight to resurrect EXIM after its charter expired at the end of June.
