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Louisiana Company Uses Many EXIM Products to Grow Sales

Exporter/Customer: 
Dredging Supply Company
Export Destinations: 
Worldwide
EXIM Bank Product: 
Working Capital, Export Credit Insurance, Mediumt-Term Financing and Direct Loan

Dredging Supply customizes a variety of dredges.

Dredging Supply Company (DSC), based in Reserve, Louisiana, manufactures made-to-order dredges - machines that that move large quantities of earthen material - that are used for a wide a variety of applications. From the maintenance of harbors and rivers in cities like New Orleans to large-scale infrastructure projects in emerging markets like Nigeria, DSC does its best to meet the requirements of its customers.

“Our goal is to give you exactly what you need,” said Kevin Dolan, Vice President of Finance and Chief Financial Officer of the 140-employee company. DSC makes every dredge to order, with prices ranging from $300,000 all the way up to $10 million for larger, more complex projects. The company has facilities in Reserve, La.; Poplarville, Miss.; Greenbush, Mich.; and Stoneboro, Pa.

EXPORT CHALLENGE

A key part of meeting their customers’ needs is providing financing for their dredge manufacturing operations; balancing DSC's cash flow; and protecting against buyer nonpayment.

EXIM SOLUTION

EXIM has a portfolio of products and has used many to boost DSC's international sales. For example, in June 2012, EXIM approved a $7 million loan guarantee supporting the export of dredging equipment and spare parts to Japaul Oil and Maritime Services PLC in Port Harcourt, Nigeria. The Bank also guaranteed a medium-term loan from RB International Finance (USA) LLC in Bethel, Conn., to Japaul Oil and Maritime Services for the purchase of DSC equipment. The foreign buyer's primary business is oil and maritime services in the upstream segment of Nigeria's oil and gas industry.

DSC has also relied on EXIM's working capital loan guarantee to JP Morgan Chase Bank to cover 90% of its line of credit to DSC. Also, depending on the year, 50 to 70 percent of DSC’s sales are international, and EXIM is often a necessary part of completing those deals. To export to Bangladesh, for example, DSC needed export credit assistance from EXIM because Bangladesh’s central bank demanded that advance payments made to DSC be supported by standby letters of credit. In other cases, customers required EXIM's letter of credit support for advance payments.

RESULTS

EXIM has been responsible for boosting DSC's sales and supporting many DSC jobs. From 2013 to 2018, it supported $56.5 million of the company's international sales.

"Even when EXIM support isn’t a prerequisite for a sale, EXIM still helps DSC compete with dredge manufacturers in other countries. We’re not the only ones with an export-import support program."
Kevin Dolan, Vice President of Finance and Chief Financial Officer