Energy-Industry Small Business Adds Jobs in Texas and Louisiana with EXIM Insurance and Working Capital Support
July 17, 2019
(Ex-Im Bank)
Washington, D.C. – Mid-South Control Line, a small business in the oil and gas
industry headquartered in Marrero, Louisiana, is benefiting from the support of
the Export-Import Bank of the United States (EXIM) to expand its international
sales to energy customers in 37 countries. Since the company began using EXIM
products, Mid-South Control Line has grown from two to 20 employees at its
facilities in Marrero and Houston, Texas.
To draw attention to the White House’s Made in America Week, EXIM is
showcasing companies such as Mid-South Control Line whose success in exporting
illustrates how American businesses—small and large—contribute to U.S.
economic prosperity by sustaining and creating jobs in the United States.
Mid-South Control Line is a global supplier and manufacturer of hydraulic
control lines, tubing encased conductors, and cable protectors for leading
companies in the oil and gas industry. Their products are used during completion
of oil and gas wells. Founded in 1989, the small business with 30 employees was
one of the first to focus its business on these components as a product line and
provides customized solutions for its customers.
To foster its export business, Mid-South Control Line turned to EXIM, using the
agency’s export credit insurance and working capital loan guarantees to
expand.
“EXIM has helped Mid-South grow our international business by providing a
secure support system when setting up new customers outside of the USA,” said
Rick Lore, Sr., president and founder of Mid-South Control Line. “Before we
established our relationship with EXIM, I was very leery in giving any credit to
companies that I was not either familiar with or who didn’t have U.S. ties for
payment purposes.”
Mid-South Control Line relies on two EXIM products: the working capital
guarantee (which helps in the pre-export phase to provide necessary cash flow)
and export credit insurance (which helps in the post-export phase to insure
payment of foreign receivables). EXIM has supported more than $116 million of
the company’s exports since 2014.
During the manufacturing phase, the company uses EXIM’s working capital
guarantee, which enables companies to obtain necessary financing and maintain
their cash flow, working through lender J.P. Morgan Chase & Co.
When the exports have been shipped, the company uses EXIM’s export credit
insurance, which allows companies to offer credit terms to their buyers, to
remain competitive, and to expand into new markets. J. Maxime Roy Inc. in
Lafayette, Louisiana, is the EXIM insurance broker.
Mid-South Control Line is among the largest U.S. exporters in its industry. This
year, the company will fill more than 300 export orders, valued at nearly $20
million and destined for 37 countries, Lore said. “Without the EXIM coverage,
some of these orders would not have happened,” he said. “It has been a great
feat to see our growth in the international market that we work in, and EXIM has
played a huge part in our success.”
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