General Electric (GE) has said in a press release that it will be moving the production and jobs for its turbines and generators to France, Hungary and China.
The company said that it is due to the lack of available export financing in the U.S.
GE said in the press release that Belfort, France will become its unique Center of Excellence for 50 hertz heavy duty gas turbines.
The company also said that its final assembly of aeroderivatives turbines will be moved to Hungary and China.
The move will remove approximately 500 jobs in Texas, South California, Maine and New York and bring it to France, Hungary, and China, according to the press release.
This is required for GE and its customers to access the export credit that it secured from the French export credit agency (COFACE) and other foreign export credit agencies.
John Rice, the vice chairman of GE, said in the press release that the company has done everything in its power to avoid making the move.
"Congress left us no choice when it failed to reauthorize the Ex-Im Bank this summer," he said. "We know this will have an 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."
Customers of GE often require guaranteed financing from a foreign export credit agency in order for them to submit a bid, according to the press release.
With the expiration of the U.S. Export-Import Bank authorization on July 1, GE's customers have no access to export financing from the U.S.
The Wall Street Journal adds that after the charter of the 81-year-old Export-Import expired, 64 senators voted for an amendment to reopen the bank.
The vote, though, was blocked by conservative Republicans, who control key leadership positions, in the House of Representatives.
The Wall Street Journal adds that critics of the bank have said that Washington shouldn't be picking winners and losers.
Others have said that any hardship for business is part of a necessary recalibration.
The Wall Street Journal adds that the Export-Import requires for the production and jobs of the majority of the deal it finances to be located in the U.S.
The same requirement, though, is also what other foreign export credit agencies enforce for them to provide financing.
Jeff Connelly, vice president of supply chain of the GE Power & Water, said in the press release that they have to move their work to places that will offer "credit financing."
"Our customers rely on export credit agencies, like U.S. Ex-Im, to finance their critical power projects," he said.
