OTTAWA, Feb. 4, 2016 /CNW/ - Export Development Canada (EDC) today announced a previously dispersed CAD 4 M in financing for Sherbrooke, Quebec's Exo-s, a supplier of molded plastic parts primarily for the auto sector.
"We've heard from an overwhelming number of Canadian companies about how difficult it is to enter the supply chains of those large global players, where the opportunities are most numerous," said Carl Burlock, Senior Vice-President, Financing and Investment, EDC. "EDC's financing for Exo-s allows them to be closer to their customers in order to more readily capitalize on these opportunities. As a result, the entire company grows, both internationally and here at home."
Part of the financing was used by Exo-s to acquire the assets of Mexican plastics company Hudson Gardens. The remainder will be used to purchase new equipment for a production plant that came as part of the Hudson Gardens acquisition.
"It made sense for our company to expand production into Mexico because that's where our main automotive customers —like General Motors and Chrysler—are growing their operations," said Daniel Denault, Chief Financial Officer, Exo-s. "Being located down the street from our customers simply puts us in a better position to win contracts and build relationships."
"The expansion is already paying off, as we recently won a contract to produce parts for new car platforms being built in Mexico. While some of those parts will come from our facility in Mexico, the new contract also means new orders for our plants in Canada and the U.S., where production will need to increase in order to meet demand," added Denault.
In addition to financing, EDC was also able to help Exo-s find opportunities in Mexico by making introductions to some of the major automotive manufacturers in the area.
"EDC's representatives on the ground in Mexico helped promote our products, and introduced us to Mercedes-Benz and Daimler Trucks, which could result in new business for our company," said Denault.
Read more about how Exo-S is expanding internationally at:
Exo-s is a leading supplier of injection and blow molded automotive products such as engine covers, thermal ducting systems (HVAC) and coolant reservoirs. The company also manufactures consumer and industrial goods for markets including agriculture, all-terrain utility vehicles, toys and household appliances. Headquartered in Sherbrooke, Québec, Exo-s employs more than 700 people in Canada, Mexico and United States.
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: Simon Forsyth, Export Development Canada, E-mail: firstname.lastname@example.org, Phone: 613-598-3852