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Employees Rehired in Texas Due to EXIM Support

Exporter/Customer: 
Fritz-Pak Corporation
Export Destinations: 
Russia, Taiwan, China, South Africa, Germany, Mexico
EXIM Bank Product: 
Export Credit Insurance
Export Sales: 
40 percent of sales

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Fritz-Pak Corporation manufactures and sells concrete admixtures that make better concrete, and make construction practices easier and safer. The ultimate goal is to have buildings and structures that are a better value for society. The company also teaches and educates construction professionals about better construction practices and the correct use of admixtures and supplies the construction industry with advanced concrete admixtures in easy-to-use presentations.

Fritz-Pak supplies its products to decorative concrete contractors, pool contractors, concrete precasters, ready mix producers, concrete pumpers, and insulated concrete forms (ICF) contractors. The company has been a minority-owned small business established in 1998.

Gabriel Ojeda runs this small business out of a modest warehouse just east of Dallas with his wife and son. They manufacture 40 different specialty products, including plasters you’d find in swimming pools or sports stadiums. Sales were steady—until the 2008 recession hit. Gabriel had to lay off three of his 14 employees, and was nearly forced to sell off the business. So when private financing proved unavailable, the company turned to EXIM for a reliable insurance package to protect its international sales.  

EXPORT CHALLENGE

When Gabriel’s family came up with the idea of pursuing sales in global markets, they sought out private financing—but when a typical export sale is only $10,000 or $12,000, a local bank isn’t always interested in financing. Even though the company had been exporting for over a decade, it needed assistance to expand sales into new markets.

EXIM SOLUTION

EXIM approved an export credit insurance policy which helped Fritz-Pak expand its sales to Russia, Taiwan, China, and South Africa. With EXIM’s insurance, the Ojedas were able to offer their foreign buyers open account credit terms while protecting against the risk of not being paid. These terms are welcomed by foreign buyers as they prefer not to pay cash-in-advance which adversely affects their cash flow.

RESULTS

Thanks to EXIM, exports now account for about 35 percent of the company's total sales. This  export growth allowed Gabriel to rehire those three laid-off employees. Of interest, Fritz-Pak proudly displays "Made in the USA" on every box it delivers.  The company has expanded into India, Russia, Taiwan, China, and South Africa and foresees increasing its production and office staff to accommodate the additional sales going forward.

"Exporting as a small business has always been a risky proposition; even more so in today's financially unstable global economy. With EXIM Bank, I have the peace of mind to expand my business as much as possible while mitigating many of the risks associated with international transactions ... We may be small, but we think big. In an age where everything seems to be made someplace else, we’re thriving here in Texas. Our success is due to hard work, attention to customers’ needs and belief in the future. Yet there’s no doubt this success is also in no small part due to the services provided by EXIM Bank."
David Ojeda, Vice President