MIRA
INFORM REPORT
|
Report Date : |
28.03.2007 |
IDENTIFICATION
DETAILS
|
Name : |
SONGWON INDUSTRIAL CO., LTD. |
|
|
|
|
Registered Office : |
737-2, Yeocheon-Dong, Nam-Gu, ULSAN 680-090 |
|
|
|
|
Country : |
Korea |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
12/15/1965 |
|
|
|
|
Legal Form : |
Listed Company |
|
|
|
|
Line of Business : |
Manufacture of All Other Chemical Products |
RATING &
COMMENTS
|
MIRA’s Rating : |
A |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
Basic
|
Company
Name |
SONGWON
INDUSTRIAL CO., LTD. |
|
Registered Address |
737-2,
Yeocheon-dong, Nam-gu, ULSAN, KOREA (C.P.O.
BOX 154, NAM ULSAN) |
|
Zip Code |
680-090 |
|
Tel |
+82-52-273-9841 |
|
Fax |
+82-52-272-3528 |
|
E-mail |
info@songwonind.com |
|
Website |
www.songwonind.com |
|
Trading Address /Export Department |
737-2,
Yeocheon-dong, Nam-gu, ULSAN, KOREA |
|
Tel |
+82-52-273-9841 |
|
Fax |
+82-52-272-3528 |
|
Seoul Office |
Songwon
Building 59-4 Banpo-4dong, Seocho-gu, Seoul, Korea (C.P.O.
BOX 4473, SEOUL) |
|
Tel |
+82-2-536-3600 |
|
Fax |
+82-2-536-3773 |
|
Suwon Factory |
460,
Sin-dong, Yeongtong-gu, Suwon-si, GYEONGGI-DO, KOREA (C.P.O.
BOX 25, SUWON) |
|
Tel |
+82-31-204-8801 |
|
Fax |
+82-31-204-2612 |
|
Busan Office |
266 Yonsan-dong, Tongrae-gu, Busan, Korea |
|
Tel |
+82-51-758-9151 |
|
Fax |
+82-51-758-9157 |
|
Type |
Export/Import |
|
Industry |
Manufacture of All Other Chemical Products n.e.c. |
|
Main Business |
Antioxidant, PVC Stabilizer |
|
Established (mm/dd/yyyy) |
12/15/1965 |
The Subject owns the premises of the Ulsan
factory(86,343.92㎡), Suwon factory(28,729.64㎡), Busan Office(3,630.90㎡), and Seoul Office(2,211.43㎡).
Detailed Products
|
Activity |
Detailed Products (UNSPSC) |
|
Sell |
Anti corrosives(15121800) |
|
Sell |
Polymerics(12162002) |
|
Sell |
Flocculents(47101608) |
|
Sell |
Resins(13111000) |
|
Sell |
Polyvinyl Chloride PVC(13102030) |
|
Sell |
Anti oxidants(12162200) |
|
Sell |
Phenolic resin(13111002) |
|
Sell |
Pesticides or pest repellents(10191500) |
|
Sell |
Polyurethane resins(13111061) |
|
Buy |
Butane(15111505) |
|
Buy |
Ethers or its substitutes(12352112) |
|
Buy |
Phenols or its substitutes or derivatives(12191503) |
|
Buy |
Magnesium(11101707) |
|
Buy |
Tin ore(11101610) |
|
Buy |
Chemistry reagents or solutions(41116105) |
|
Buy |
Machine finished or glazed kraft paper(14122102) |
|
Buy |
Alcohols or its substitutes(12352104) |
|
Buy |
Polyurethane resins(13111061) |
|
Buy |
Proteins(12352202) |
|
Buy |
Inorganic metal salts(12352302) |
|
Buy |
Anti corrosives(15121800) |
CEO’s
|
Name |
Park Jong-Ho |
|
Address |
|
|
Date of Birth |
02/22/1973 |
|
Title |
President & CEO |
|
Sex |
Male |
|
Nationality |
Korean |
Profiles
|
Capital |
12,000,000,000 KRW |
|
Employees |
351 |
|
Formation |
Listed Company (KSE: 004430) as of June
1977 |
|
Bank Details |
Korea Exchange bank Shin Banpo Branch |
|
Corporate Registered No. |
180111-0000636 |
|
Business Registered No. |
610-81-07100 |
|
Permit & Licenses |
07/12/1995 ISO 9002 01/12/2000 Single PPM Int’l Trade No.: 731726 Awards 1976 Nov won "Prize for Export Merit" from the Ministry of
Commerce and Industry 1978 Nov won "Presidential Citation" on the 15th Export Day 1979 Dec selected as one of the Ten Major Korean Enterprises by Korea
Productivity Center 1982 Mar won "Industrial Medal of Iron Tower" on the 16th
Tax Day 1983 Dec won "Pusan Industrial Prize(Management Award
Category)" from the Pusan Chamber of Commerce and Industry 1983 Dec selected as one of the Ten Major Korean Enterprises by Korea Productivity
Center 1984 Apr won "Industrial Medal of Copper Tower" on the 17th
Science Day 1985 May won "May 16 National Prize for Industry" from the
May 16 National Prize Foundation 1987 Nov won "Industrial Medal of 20 million Dollar Tower"
on the 24th Export Day 1992 Mar won "Presidential Prize" on the 26th Tax Day 1994 May won "Best Enterprise of 1994" from Korea
Productivity Center 1994 Nov won "Industrial Medal of 50 million Dollar Tower"
on the 31st Export Day 2002 Apr awarded "Korean World-Class Product Award 2002
(No.2002-348)" for Bi Phenol by Ministry of Commerce, Industry and
Energy, Korea 2005 Nov won "Industrial Medal of 100 million Dollar Tower"
on the 42nd Export Day |
|
Shareholder Position |
|
|||||||||||||||||||||
|
Company History |
Dec. 1965 Songwon Industrial Co., Ltd. with head office and plant in
Pusan, was established Mar. 1966 Started production of Liquid PVC Stabilizers for the first
time in Korea Nov. 1968 Opened Seoul Office Apr. 1971 Started production of Metallic Soaps and Lead Salt
Stabilizers May. 1974 Started production of Polyurethane Elastomer for synthetic
leather Nov. 1975 Started production of Polyesterdiol, elementary raw material
for Polyurethane Resin Jan. 1976 Started production of Antioxidants for Rubber May. 1976 Started production of Polyurethane Systems for Shoe Soles Feb. 1977 Started operation of Suwon Plant Jun. 1977 Songwon Industrial Co., Ltd. went public Dec. 1977 Opened General Research Center at Suwon Nov. 1979 Started production of Flocculants with self-developed
technology Apr. 1981 Started production of Tin intermediates with self-developed
technology Mar. 1983 Started production of Polyurethane Systems for Floor Coating
Materials May. 1983 Started production of Cytin, Acytin and Fenbutan ;
agrochemical technical grade Nov. 1983 Established own R&D Center with the approval of the
Ministry of Science and Technology, Korea Mar. 1984 Started production of Thermoplastic Polyurethane (TPU) Feb. 1985 Started production of Antioxidants 1010 and 1076 Mar. 1986 Started production of Super-Absorbent Polymer with
self-developed technology May. 1986 Started operation of Ulsan Plant Mar. 1988 Moved Head Office to Ulsan Plant from Pusan Jul. 1993 Started production of Antioxidant 1680 Apr. 1995 Started production of Antioxidant 2450 Jul. 1995 Approved ISO-9002 certificate Jul. 1996 Started production of Antioxidant 3114 Jan. 1997 Started production of Methyl Tin Stabilizers Nov. 1998 Started production of Antioxidant 2,4-DTBP and 2,6-DTBP Jul. 1999 Started production of Antioxidant FR Sep. 2000 Started production of Antioxidant 6260 Oct. 2000 Developed Biphenol Mar. 2001 Started production of Antioxidant 1035 Jul. 2001 Started production of Biphenol Aug. 2001 Developed 2M6B(6TBOC) Oct. 2001 Started production of 2M6B(6TBOC) Jan. 2003 Started production of OTBP Mar. 2003 Started production of 4M6B Mar. 2003 Started production of TMBP Apr. 2003 Started production of Antioxidant 2450 DW & Songstay-L
DW Jun. 2003 Started production of PTBP-H Jan. 2005 Started production of Liquid Phosphites Oct. 2005 Establishment of Shanghai Songwon Brilliant Chemicals Co.,
Ltd. Jul. 2006 Establishment of Songwon International AG & Songwon
International - Americas, Inc. |
The Subject Company is engaged in the
production of fine chemicals, including additives, intermediates and resins.
The Company also offers polyvinyl chloride (PVC) products such as stabilizers,
plasticizers, lubricants and surface-coating agents; polyurethane and polyester
diol products; alkyl phenol products, including mom-alkyl phenols, di-alkyl
phenols and alkyl cresols; biphenols; and flocculants. In addition, the Company
produces super-absorbent polymers, agrochemicals, tin intermediates, n-butyramide
and acryl foam tapes. The Company is based in Seoul, Korea, and also has an
overseas office in Tokyo.
Management
|
Job Description |
Title |
Name |
Nationality |
Date of Birth |
Education |
|
President & CEO |
Mr. |
Park Jong-Ho |
Korean |
73.02.22 |
Boston University |
|
Executive Director |
Mr. |
Kim Ok-Keun |
Korean |
51.10.15 |
Busan National University |
|
Executive Director |
Mr. |
Kim Sang-Ha |
Korean |
54.08.26 |
TULANE University |
|
Director |
Mr. |
Lee Jong-Hyung |
Korean |
53.09.22 |
Busan National University |
|
Director |
Mr. |
Kang Dae-Chul |
Korean |
54.06.16 |
Busan National University |
|
Outside Director |
Mr. |
Byun Ki-Soo |
Korean |
46.12.18 |
Busan National University |
|
Outside Director |
Mr. |
Moon Sub-Kook |
Korean |
49.12.14 |
Busan National University |
|
Auditor |
Mr. |
Kwon Yong-Hoon |
Korean |
45.12.30 |
Busan National University |
Financials
Unit: KRW
|
Year |
Sales |
Assets |
Net income |
|
2006 |
236,324,475,147 |
384,565,605,683 |
(-)10,972,527,870 |
|
251,937,613,501 |
314,756,944,995 |
9,614,005,330 |
|
|
2004 |
213,799,710,550 |
292,195,112,934 |
(-)1,810,500,847 |
Financial Description
Unit: KRW
|
Authorized
Capital |
50,000,000,000 |
|
Paid-Up
Capital |
12,000,000,000 |
|
Total Issues Shares |
24,000,000 |
|
Balance Sheet |
|||
|
Unit : Korean Won |
As of 12/31/2006 |
As of 12/31/2005 |
As of 12/31/2004 |
|
Total Assets |
384,565,605,683 |
314,756,944,995 |
292,195,112,934 |
|
Current Assets |
115,017,977,325 |
108,760,227,747 |
105,105,990,650 |
|
-Quick Assets |
62,942,254,897 |
62,231,329,930 |
68,866,399,361 |
|
-Inventories |
52,075,722,428 |
46,528,897,817 |
36,239,591,289 |
|
Fixed Assets |
269,547,628,358 |
205,996,717,248 |
187,089,122,284 |
|
-Investment |
10,892,052,203 |
17,185,107,207 |
14,453,282,106 |
|
-Tangibles |
256,935,283,252 |
187,006,935,653 |
172,363,752,433 |
|
-Intangibles |
1,720,292,903 |
1,804,674,388 |
272,087,745 |
|
Total Liabilities |
265,067,579,674 |
183,298,879,249 |
169,723,508,583 |
|
Current Liabilities |
145,638,979,670 |
115,823,046,143 |
112,861,313,149 |
|
Fixed Liabilities |
119,428,600,004 |
67,475,833,106 |
56,862,195,434 |
|
Capital Stock |
12,000,000,000 |
12,000,000,000 |
12,000,000,000 |
|
Capital Surplus |
83,505,294,052 |
83,505,294,052 |
83,505,294,052 |
|
Profit Surplus |
35,159,674,707 |
47,105,912,577 |
38,173,504,247 |
|
Capital Adjustment |
(-)11,166,942,750 |
(-)11,153,140,883 |
(-)11,207,193,948 |
|
Total Equity |
119,498,026,009 |
131,458,065,746 |
122,471,604,351 |
|
Liab. & Shareholder’s Equity |
384,565,605,683 |
314,756,944,995 |
292,195,112,934 |
|
Current Liabilities |
145,638,979,670 |
115,823,046,143 |
112,861,313,149 |
|
Trade payables |
17,230,872,128 |
18,178,766,734 |
12,505,015,997 |
|
Short-Term Borrowings |
76,123,737,614 |
58,273,984,392 |
68,518,300,000 |
|
Account Payables |
22,392,450,790 |
14,790,144,319 |
13,508,007,234 |
|
Advance Receipts |
48,656,893 |
161,464,677 |
8,990,700 |
|
Withholdings |
205,404,104 |
150,093,244 |
72,816,894 |
|
Accrued Expenses |
2,993,356,563 |
2,500,771,152 |
1,992,672,276 |
|
Accrued Income Tax |
- |
220,525,285 |
- |
|
Accrued Dividends |
1,321,105 |
1,235,955 |
1,188,459 |
|
Fixed Liabilities |
119,428,600,004 |
67,475,833,106 |
56,862,195,434 |
|
Debentures |
30,000,000,000 |
25,000,000,000 |
45,000,000,000 |
|
Long-Term Account Payavles |
1,929,501,000 |
3,710,613,000 |
5,491,725,000 |
|
Long-Term Borrowings |
|
30,000,000,000 |
- |
|
Provision for Severance & Retirement |
17,042,439,389 |
16,393,507,459 |
14,534,010,000 |
|
Deposits for Employees' Severance Insurance |
(-)8,933,301,085 |
(-)9,056,640,115 |
(-)9,133,254,465 |
|
Transferred to National Pension Fund |
(-)378,225,300 |
(-)394,158,900 |
(-)413,180,900 |
|
Leasehold Deposits Received |
1,962,000,000 |
2,072,500,000 |
2,075,500,000 |
|
Income Statement |
|||
|
Unit : Korean Won |
As of 12/31/2006 |
As of 12/31/2005 |
As of 12/31/2004 |
|
Sales |
236,324,475,147 |
251,937,613,501 |
213,799,710,550 |
|
Cost of Sold Goods |
218,687,199,473 |
221,588,014,184 |
200,099,949,440 |
|
Gross Profit |
17,637,275,674 |
30,349,599,317 |
13,699,761,110 |
|
Selling & Admin. Expenses |
14,172,895,527 |
14,426,060,172 |
11,008,545,798 |
|
Operating Income |
3,464,380,147 |
15,923,539,145 |
2,691,215,312 |
|
Non-Operating Income |
5,710,277,870 |
4,629,198,841 |
6,137,253,639 |
|
Non-Operating expenses |
14,192,696,032 |
12,131,797,716 |
11,187,369,475 |
|
Ordinary Income |
(-)5,018,038,015 |
8,420,940,270 |
(-)2,358,900,524 |
|
Special Income |
- |
- |
- |
|
Income Before Taxes |
(-)5,018,038,015 |
8,420,940,270 |
(-)2,358,900,524 |
|
Income Taxes Expenses |
5,954,489,855 |
(-)1,193,065,060 |
(-)548,399,677 |
|
Net Income |
(-)10,972,527,870 |
9,614,005,330 |
(-)1,810,500,847 |
|
Cash Flows |
|||
|
Unit : Korean Won |
As of 12/31/2006 |
As of 12/31/2005 |
As of 12/31/2004 |
|
Cash Flows from Operating |
12,402,730,927 |
35,759,027,193 |
16,608,431,740 |
|
-Net Income |
(-)10,972,527,870 |
9,614,005,330 |
(-)1,810,500,847 |
|
-Exp. without Cash Outflow |
28,740,813,974 |
31,007,572,557 |
28,873,772,503 |
|
-Revenue without Cash Inflows |
(-)1,620,820,183 |
(-)226,828,821 |
(-)1,989,473,809 |
|
-Changes in Asset/ & Liability |
(-)3,744,734,994 |
(-)4,635,721,873 |
(-)8,465,366,107 |
|
Cash Flows from Investing |
(-)94,894,504,674 |
(-)38,908,470,988 |
(-)39,392,090,674 |
|
-Cash Inflow from Investing |
6,181,943,674 |
19,590,213,985 |
36,706,766,420 |
|
-Cash Outflows for Investing |
(-)101,076,448,348 |
(-)58,498,684,973 |
(-)76,098,857,094 |
|
Cash Flows from Financing |
72,958,743,636 |
2,521,547,116 |
38,484,951,434 |
|
-Cash Inflows from Financing |
880,793,409,298 |
692,369,036,839 |
653,672,786,184 |
|
-Cash Outflows from Financing |
(-)807,834,665,662 |
(-)689,847,489,723 |
(-)615,187,834,750 |
|
Increase/Decrease in Cash |
9,533,030,111 |
(-)627,896,679 |
15,701,292,500 |
|
Cash at the Beginning of Year |
18,866,436,539 |
19,494,333,218 |
3,793,040,718 |
|
Cash at the End of Year |
9,333,406,428 |
18,866,436,539 |
19,494,333,218 |
Products,
Technologies, Services
Description
|
Main
Products & Services |
PVC 1) Stabilizers 2) Plasticizers 3) Lubricants 4) Surface Coating Agents Polyurethane 1) Hi-Thane Series 2) Hi-Foam Series 3) Urecast Series 4) Songstomer Series Polyester Diol Antioxidant 1) 1010, 1076, 1680, 2450, 3114, 1024,
1035, 6260, P-EPQ, B Blends 2) RD, FR Alkyl Phenol 1) Mono-Alkyl Phenol: OTBP, PTBP-H 2) Di-Alkyl Phenol: 2,4-DTBP, 2,6-DTBP 3) Alkyl Cresol: 2M6B, 4M6B Biphenol Flocculants 1) Cation 2) Anion, Nonion 3) Liquid Cation Super-Absorbent Polymer Agrochemicals Tin Intermediates Others 1) n-Butyramide 2) Acryl Foam Tape Brand Name: SONGNOX,DTBP, TMBP, BIPHENOL DBTO, DOTO,MBTC, DMTC, FENBUTAN SONGSTAB, Antioxidant RD, Antioxidant FR HI-THANE,SONG-STAR,SONG-STOMER FOAM TAPE, HI-SWELL, SONG-FLOC SONG-CIZER |
||||||||||||||||
|
Production
Capacity (Unit: Ton) |
|
Trade Partners
|
Suppliers |
LG International Corp. LG Caltex Yocheon NCC PT SINAR BASF Korea Dow Chemical Korea |
|
Customers |
Major Petrochemical companies, PVC
Processing companies, Synthetic Leather Manufacturers including LG Chemical,
Cheil Industries, Hanwha Corp., Samsung Total, Honam Petrochemical, SK Corp.,
Dongbu ALT, CLARIANT, CROMPTON, BAERLOCHER, AKCROS, TICONA, SOLVEY, DUPONT,
SUMITOMO, MITSUBISHI, PPG, OXON, GLC, BASF, REAGENS, BAYER, KIMBERLY CLARK,
IDEMITSU) -Sales Channel Direct Sales: 97% Sales through agents: 3% -Payment Condition Domestic : Periodical Payment LOCAL : OFFER → LOCAL L/C → NEGO Export: INQUIRY → OFFER → CONTRACT, L/C → NEGO |
|
Competitors |
Ciba Specialty Chemicals-Swiss Miwon Corporation-Korea Dongbu Adeca-Korea ATOFINA KOLON Chemical Daehyup Chemical Dansuck Industry Donggu Industry The Subject(OLEFIN Type/STYRENE Type) is ranked
as 1sts player in terms of domestic market share(Over 60%) and the 2nd
position next to Ciba Specialty Chemicals in terms of global market share. |
Related Parties
(Subsidiaries, Joint-
Venture &
Affiliates)
|
Affiliates |
Songwon Moolsan Co., Ltd. Kyungshin Industrial Co., Ltd. Hyun Gallery Co., Ltd. Matsubara Bussan Co., Ltd. (Tokyo, Japan) Shanghai Songwon Brilliant Chemicals Co., Ltd. |
|
Overseas Office |
Tokyo Office TEL : +81-3-3805-2551 FAX : +81-3-3801-9172 |
|
Join Venture |
Songwon International AG-Swiss (The subject:60%/ Mantenere Holding AG : 40%) |
|
Subsidiary |
Songwon International - Americas, Inc. (The Subject has 100% shares.) |
|
Cooperative Enterprise |
Sumitomo Corp.-Japan |
Sales by Region (Activity
& Markets)
|
Sales/ Unit :KRW |
2006 |
2005 |
2004 |
|
Export |
159,191,833,858 |
173,175,877,561 |
136,769,034,181 |
|
Domestic |
77,132,641,289 |
78,761,735,940 |
77,030,676,369 |
|
Total |
236,324,475,147 |
251,937,613,501 |
213,799,710,550 |
Court Action
No.
News Clipping
Anioxidants and light stabilisers for plastics
A new European Headquarter for Songwon affiliate Songwon International
has been opened in Frauenfeld, Switzerland.
Edited by the Manufacturingtalk Editorial Team on 21 March 2007
Songwon announced the opening of the European Headquarter of its
affiliate Songwon International, in Frauenfeld, Switzerland. 'This is the
culmination of the efforts last year to establish Songwon International as our
direct channel to market in Europe, the Middle East, Africa, Western Asia, and
the Americas', said Jongho Park, Chairman and CEO of Songwon Industrial.
Maurizio Butti, CEO and President of Songwon International, commented 'It gives
me great pleasure to announce the opening of our headquarter and customer
service centre in Frauenfeld which is conveniently located just outside of
Zurich.
Now we are centrally located within Europe to continue to develop our strong
position in our market area.
We have implemented state of the art systems and processes to insure
customer satisfaction through an effective and efficient supply chain.' 'We
have made great progress along the four point plan we announced in September of
last year', adds Jongho Park.
The plan included the investment in a second grass roots antioxidant
facility, the establishment of a direct channel to market, the extension and
expansion of the product range, and an emphasis on innovation.
The construction of the Maeam plant is ahead of schedule and is now
scheduled for an April start-up, as announced in January.
The Songwon Group of Companies has grown and now includes Songwon
International AG and Songwon International - Americas The product range consists
of Songnox antioxidants, Songlight hindered amine light stabilizers, and
Songsorb ultraviolet light absorbers.
Maurizio Butti continued 'The goal of our plan is to become a strategic
partner to our customers by positioning ourselves to supply across the broad
range of their polymer stabilizer requirements.
We are listening to our customers' evolving needs and our technical
teams are energized with the opportunities to develop products and solutions to
meet those needs.'
RATING
EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)