Export Credit Agency ‘EFIC’ Provides Performance Bond to Support Specialist Food Technology ‘Gold Peg International’s’ European Exports
VIC, Australia (News4us.com) December 23, 2010
Export Finance and Insurance Corporation (EFIC), the Australian Government’s export credit agency, has provided a performance bond to support a major new export contract secured by specialist food technology company Gold Peg International Pty Ltd (GoldPeg).
The Victorian company, a long-term EFIC client, has won a contract to supply food processing equipment and control hardware and software to a dairy cooperative in Europe.
Under the contract, GoldPeg was required to provide a performance bond for 50% of the contract value. As GoldPeg needed this cash for working capital for its growing business, EFIC has assisted GoldPeg by issuing the bond to the buyer.
‘Exports sales are now most of our business’, said GoldPeg’s Managing Director Simon Donnelly. ‘However, many of our overseas buyers require that we provide performance bonds, which can put significant strain on our cash flow. EFIC’s bonds help us to keep our working capital for delivering on our contracts’.
‘GoldPeg is an Australian small business in a niche area which is succeeding internationally. We’re happy to support the continued expansion of its overseas market’, said Andrea Govaert, EFIC’s Executive Director, SME.
‘As bonds are often a large proportion of the value of export contracts, they can present real obstacles for smaller exporters trying to grow their businesses overseas’.
‘EFIC’s relationship with GoldPeg is a great example of how we can assist SME exporters with bond facilities. Since 2002, we’ve provided six performance bonds on behalf of the company, supporting export contracts worth $7 million’, she said.
GoldPeg will supply and install at the buyer’s premises in Europe a specialised cooker, called a GoldPeg International Cooker Stretcher (GPiCS), for industrial production of natural mozzarella. Unlike a traditional wet cooker, which requires large quantities of water, GoldPeg’s innovative, environmentally friendly technology uses direct steam injection for continuous cooking.
The GPiCS was specifically developed by GoldPeg for the production of natural mozzarella and pasta filata varieties of cheese and was tested extensively by the Commonwealth Scientific and Research Organisation.
Short URL: http://www.news4us.com/?p=4555