EFIC supports Australian SME in development of Dubai metro
Export Finance and Insurance Corporation (EFIC), Australia's export credit agency, is supporting Planet Lighting with its US$2.4 million contract to supply large-scale decorative lighting fixtures for the development of a metro system in Dubai. The metro will be the first railway system of its kind in the region.
Planet Lighting will look after the design, manufacture, shipment and installation of various feature lighting fixtures. Their contract represents a key component of the construction of the overall metro network, and will be the Northern NSW based company’s first project on such a scale.
EFIC is providing a guarantee to Planet Lighting’s local bank, who, in turn, are providing an advance payment guarantee to support Planet Lighting’s obligations under their contract.
“The willingness of EFIC to provide support for the project made all the difference in winning the contract, and it will free up our finances for an immediate start,” said Planet Lighting’s CEO, Brett Iggulden.
“We’ve done some work in Dubai in the past, but this project is really the beginning of a great deal of large scale work in the region. With EFIC’s help, we are ready to enter this new stage of growth in our journey to export success,” said Brett Iggulden.
EFIC’s managing director, Angus Armour said “EFIC's demand guarantees may assist Australian exporters by freeing up working capital, allowing them to compete more effectively and confidently in global markets.”
Today, around 45% of Planet Lighting’s revenue is generated through exports, and the company is aiming to reach a target of 60% within the next five years.
This isn’t the first time Planet Lighting has tapped into Government network of support for Australian exporters. When the company first considered exporting, they approached Austrade for advice on export markets and received an Export Market Development Grant in 1995.
“Back then we knew that, basically if we didn’t start to export, we would soon stop trading. ‘Globalisation for survival’ has become something of a mantra for the company,” said Brett Iggulden.