Inflatable Packers International
Inflatable Packers International is a designer and manufacturer of inflatable packer down-hole tools for use in the oil and gas, mining and energy industries.
Need
Due to rapid expansion, Inflatable Packers International experienced an increased demand for its products, putting a strain on its usual working capital. The business needed additional finance to stay on top of purchase orders and export contracts.
Solution
Our $1.2m Export Contract Loan enabled Inflatable Packers International to increase its working capital and carry out Australian manufacturing operations while continuing its international exports.
Founded in Perth in 1999, Inflatable Packers International (IPI) designs and manufactures innovative products mainly used as pressure seals within oil and gas wells, and for permeability testing and hydraulic fracturing for mining projects. Its clients include some of the world’s largest resource companies as well as research institutions.
From its inception, the company sets it sights on the world market, exporting to every continent including Antarctica. It has offices in the US, Chile, Bulgaria, Singapore and United Arab Emirates, and provides products in Queensland and Western Australia.
In 2015, a large mining company made a large commercial order for both standard and custom made IPI products for use in a mining project. During that time, the mining, oil and gas sectors were experiencing a cyclical slowdown, which put pressure on IPI’s cashflow.
Export Finance Australia put together a finance program that also involved our associate company in Chile. That cashflow was a lifesaver at a very difficult time for us.
Howard Kenworthy
Group Commercial Director, Inflatable Packers International
Mission-critical finance
Group Commercial Director, Howard Kenworthy, approached us for support with finance to deliver the goods for their contract. He explained that the lengthy design, manufacturing and credit terms for export projects are usually challenging – but for such a large project, the strain on the business' working capital would be too great for it to manage its normal finance facilities.
“Export Finance Australia put together a finance program that also involved our associate company in Chile,” he said. “That cashflow was a lifesaver at a very difficult time for us.”
In 2019, IPI was expanding rapidly and needed additional finance to invest in larger and modern premises. Cameron Hall, our Senior Business Development Manager in Western Australia, worked closely with IPI to provide a working capital solution, enabling the business to continue its expansion activities.
“Cameron is a very impressive young man who I have a lot of time for,” said Kenworthy.
Kenworthy said that the support from Export Finance Australia massively increased the company’s liquidity when they needed it most, mainly around the two challenging oilfield related projects. With its expansion plans underway, the business could continue its international development while still expanding its Australian manufacturing operations, which has included 60% more employees through 2019.
“Our other finance alternatives would have not been for the company's long-term benefit,” said Kenworthy. “The finance from Export Finance Australia was absolutely mission critical on multiple occasions.”