OTTAWA, Dec. 17, 2014 /CNW/ - Export Development Canada (EDC) today announced a CAD 1 M guarantee to support Brampton-based Mirus International Inc.'s acquisition of a Chinese manufacturing facility.
The acquisition will allow the Canadian company, which specializes in power quality and harmonic mitigation products, to become more competitive in the Asian market.
Mirus' banking partner RBC provided the capital financing, with EDC guaranteeing 100 per cent of the amount.
EDC is Canada's trade bank and leading provider of financing and insurance for small-to-medium-sized companies (SMEs) that have contracts or business outside of Canada.
EDC's guarantee empowers a SME like Mirus, which may not have the assets to back a loan of this size and level of risk, to get the working capital it needs to expand international operations.
"Mirus has been trying to penetrate the China market for many years now but with little success due to the taxes and tariffs imposed on imported goods. We know there is a great need for our products in that market so when the opportunity to acquire a manufacturing operation presented itself, we needed to act quickly," said Tony Hoevenaars, Mirus President and CEO. "With the guarantee that EDC provided, securing the required funds from our bank was much easier. We now look forward to the challenge of building our business in China and the surrounding Asian Pacific markets with the ability to supply locally."
With operations in China, Mirus will be able to save on transport and production costs, which will translate into lower prices for their Asian customers.
"This was a great opportunity for Mirus to anchor itself in a very large and fast-growing market," said Christian Dallaire, Ontario Regional Vice President of Small Business Solutions, EDC. "By establishing a permanent presence in China, Mirus has positioned itself to provide better service to foreign clients, gain access to new supply chains, and expand its market share."
"The benefits that arise from direct investment abroad are numerous, and if you think this kind of expansion might benefit your company, please give us a call. There is no proposal we won't consider," added Dallaire.
Canadian companies interested in Canadian direct investment abroad can call 1-888-434-8508 or click here.
Mirus designs and develops world-class power quality improvement products. Their innovative harmonic filters and transformers reduce distortion in electrical power systems to ensure efficiency, and prevent damage or failure of electrical components. Such devices are particularly important for systems that power machinery like oil rigs or supply ships, where disruptions in power can have serious consequences.
On November 25th the Brampton company was presented the award for Emerging Exporter at the 2014 Ontario Export Awards Gala. The award honours outstanding Ontario exporters that are starting to excel in international exporting and contributing to the province's economic development.
About Mirus International Inc.
ExportWise.ca article about Mirus International Inc.: Mirus International expands its harmonics mastery to China
EDC is Canada's trade finance agency, providing financing and insurance solutions locally and around the world to help Canadian companies of any size respond to international business opportunities. As a profitable Crown corporation that operates on commercial principles, EDC works together with private- and public-sector financial institutions to create greater capacity for Canadian companies to engage in trade and investment.
For more information about how EDC can help your company, visit www.edc.ca.
SOURCE: Export Development Canada
For further information: Phil Taylor, Export Development Canada, (613) 598-2904, [email protected]