Ellicott signs $21 million deal with Indonesia

April 18, 1995|By Ross Hetrick | Ross Hetrick,Sun Staff Writer

Ellicott Machine Corp. International, a Baltimore-based dredge maker, yesterday announced it has signed a $21.5 million contract to supply auxiliary dredging equipment to the Indonesian government.

The contract, which was signed on April 12, is expected to create or maintain 50 jobs among Ellicott and its subcontractors for the next year and a half, said Ellicott president Peter A. Bowe. "It's one of the largest orders in the last 10 years," he said.

The work is being financed by a low-interest loan offered by the U.S. Export-Import Bank, which had helped Ellicott defeat a competing Norwegian bid. The loan, which was a departure from Eximbank's practice, has a 3.3 percent interest rate and a 25-year maturity, which includes a seven-year period when no interest payments are required.

The contract with PT Rukindo, the state-owned dredge company, is for five self-propelled split hopper barges, a tug boat and spare parts. Ellicott will provide design and machinery for the vessels with hull construction and final assembly done in Indonesian shipyards.

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