General Electric Co (GE) has announced Monday that it is now leaving Wisconsin for Canada since the United States does not offer access export financing.
According to Reuters, GE is moving its production plant for large, gas-powered engines in a yet to be determined area in Canada.
The company is reportedly willing to invest $265 million for its new manufacturing plant while the U.S. plant closure is expected to be completed after a year and eight months.
GE noted that the large manufacturing plant would be for engines for its railroad locomotives businesses.
In a statement, GE blamed Congress for reauthorizing the U.S. Export-Import Bank's charter that expired in June, as per The Washington Post.
"We believe in American manufacturing, but our customers in many cases require Export Credit Agencies financing for us to bid on projects. Without it, we cannot compete and our customers may be forced to select other providers," said GE vice chairman John Rice.
Rice then went on to state, "We know these announcements will have regrettable impact not only on our employees but on the hundreds of U.S. suppliers we work with that cannot move their facilities, but we cannot walk away from our customers."
According to Union spokesman Frank Larkin the U.S. Export-Import Bank was very important because it provided American jobs protection and ensured that profit was being returned to the U.S. Treasury.
The bank's charter was shut down on June 30 after Republicans claimed that the bank's operations only benefit a few large corporations that do not really need assistance from the government.
Rice also highlighted the implication of GE's decision to move its engine-manufacturing plant to Canada.
"We must prepare for the worst case and arrange export finance outside the U.S. Unfortunately, this will come at the expense of American jobs. In a slow growth and volatile world, we must go where the markets are and compete in over 170 countries," Rice was quoted by Star Tribune.
