Express Insurance Opens World Markets for Connecticut Manufacturer

Photo courtesy of Xamax Industries Inc.

Xamax Industries Inc. is a Connecticut-based manufacturer of materials like specialty paper, plastics and nonwoven fabrics. These materials are sold to foreign manufacturers, where final products are assembled. Prior to using Ex-Im’s Express Insurance, Xamax Industries was limited in its international sales because customers required open-account payment terms that were too risky and not acceptable to banks without insurance.

Xamax’s President Martin Weinberg admits that he was skeptical when his accounting firm encouraged him to utilize Ex-Im Bank’s export financing. But he attended an Ex-Im Global Access for Small Business Forum in New Haven and learned that with Ex-Im Bank insurance he could increase Xamax’s overseas sales without elevating the risk.

“We wanted to go a month or two to see if Ex-Im Bank was for real,” Mr. Weinberg said. “Now I know that Ex-Im Bank products are a no-brainer. The Ex-Im Bank policy lets us sell products where we otherwise could not have sold them. We have added sales in China, Spain, Mexico, Canada and Malaysia – all sales that would not have happened without Express Insurance. What Ex-Im Bank charges for insurance is fair, and the policy has changed the profile, products and future outlook for my company.”

With Ex-Im’s support, Xamax is now able to pursue additional buyers. “We can extend better terms to our customers,” he added. “For example, we now have a positive balance in China, meaning that we sell more in China than we purchase, which is basically unheard of.”