MARKHAM, ON, March 3, 2016 /CNW/ - Export Development Canada (EDC) today announced CAD 500 K in financing for Markham-based Tower Solutions to help manage the costs of delivering on a new contract in Saudi Arabia.
Tower Solutions is a small- to medium-sized enterprise (SME) that specializes in the design, engineering, and installation of portable towers used for emergency power line maintenance. The company has developed unique technology that makes the towers especially effective in desert conditions, making the Middle East a key market for future growth.
"Given how adaptable and uniquely engineered our product is, we see huge potential for expanding our global footprint," said Ciro Pasani, CEO of Tower Solutions. "As a SME, the challenge is getting the financing we need to take on new international contracts, and also finding the right partner that can help us penetrate new markets and find the right opportunities. EDC has been able to help us on both counts."
In addition to supporting Tower Solutions' expansion into the Middle East, EDC's local representatives in India and Colombia were able to help Tower Solutions find opportunities with major buyers in those markets. With EDC backing Tower Solutions financially, prospective buyers can be confident that the SME has the financial support necessary to deliver on large contracts.
"It can be hard for a small business to get initial financing to expand its footprint," said Mairead Lavery, Senior Vice-President, Business Development, EDC. "EDC's goal is to make exporting as easy as possible, because small companies have more time to spend on productive areas of their business when they're not worried about financing or risk."
"In the case of Tower Solutions, we see considerable potential for the company to grow given their unique product, and how innovative and adaptable they've shown themselves to be," said Lavery. "We look forward to seeing them succeed in their expansion, and we'll continue to keep an eye out for potential foreign buyers to connect them with."
SMEs like Tower Solutions make up 99 per cent of Canada's businesses, account for 40 per cent of GDP and 55 per cent of all jobs. Yet only 73,000 of the more than 1 million SMEs operating in Canada are currently exporting. This means only 7 per cent of Canada's economic engine is tapping into international customers and supply chains. EDC is committed to raising that percentage, and in 2015 provided nearly 6,000 SMEs with the solutions they needed to conduct CAD 15.5 B in exports and investments.
About Tower Solutions
Tower Solutions is a privately held Canadian corporation based in Ontario and is a proud member of the Markham Chamber of Commerce and the Toronto Board of Trade. The Company was formed in 2002 in response to the industry's need for a better temporary tower solution.
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 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 we can help your company, call us at 1-888-434-8508 or visit www.edc.ca.
SOURCE Export Development Canada
For further information: Spokesperson, Simon Forsyth, Export Development Canada, (613) 598-3852, [email protected]