UPDATE 3-With no U.S. trade loans, GE to build turboprop engines in Europe

(Adds details on GE turboprop project and other GE investments,
background on EXIM shutdown, lawmaker comments)
By David Lawder and Lewis Krauskopf
WASHINGTON/NEW YORK, Sept 17 (Reuters) - Turning up the
pressure on Congress to revive the U.S. Export-Import Bank,
General Electric (NYSE:GE) Co GE.N said on Thursday it would open a new
development center for turboprop engines in Europe because it
cannot access U.S. export financing.
The GE's move was the latest effort by a big company to
raise the alarm in Washington about the shutdown of new
financing by EXIM, so far with little evident impact on
Congress.
GE said the $400-million turboprop project would create 500
to 1,000 jobs. It said it will develop, test and produce engines
for larger aircraft, a new market for GE Aviation.
The largest U.S. industrial conglomerate also said it will
invest $55 million in Celma, Brazil, to build a new engine
testing facility, and will spend $23 million on expanding its
engine testing capability in Winnipeg, Canada.
Several European locations are being considered for the
turboprop center, including in the Czech Republic, where GE now
builds turboprop engines for small aircraft, GE spokesman Rick
Kennedy said. Talks are underway with export credit agencies in
those countries for financing and loan guarantees.
GE stopped considering U.S. locations for the new facility
after Congress allowed EXIM's charter to expire on June 30, the
result of a campaign by conservative Republicans against the
bank, which they say exemplifies "corporate welfare."
On Tuesday, GE announced plans to shift up to 500 U.S. power
turbine manufacturing jobs to Europe and China because it can no
longer access EXIM financing. ID:nL1N11L0VG
The warning shots, along with a visit by GE Chairman Jeff
Immelt to Capitol Hill on Wednesday, thus far have not jolted
Congress into action to revive EXIM. House Financial Services
Chairman Jeb Hensarling and a vocal group of other conservative
Republicans have blocked legislation to reauthorize the
81-year-old bank.
House Republican lawmakers said on Thursday there have been
no discussions of trying to attach EXIM legislation to a
spending bill needed to keep the government open past Sept. 30.
GE has said it is bidding on $11 billion worth of
international projects that require export credit agency
financing and has started talks with several foreign export
credit agencies since EXIM's lending authority expired.
Kennedy said EXIM's closure would put GE Aviation at a
competitive disadvantage with its rival in the turboprop
business, Pratt & Whitney Canada, a division of United
Technologies Corp UTX.N , because Pratt can provide
government-backed credit assistance from Canada to its
customers.
GE Aviation employs 25,000 U.S. workers, including 9,000 in
the southwest Ohio area where the division is headquartered.
Those facilities are close to the Ohio district represented
by Republican House Speaker John Boehner. He has supported EXIM
in the past, but has been largely silent about whether he will
allow renwal legislation to proceed.
"The only commitment the speaker has made is to give
Chairman Hensarling the opportunity to amend any Senate-passed
vehicle that may include Ex-Im," said Boehner spokeswoman Emily
Schillinger. "Chairman Hensarling asked the speaker for this
consideration and he agreed to it."