MIRA
INFORM REPORT
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Report Date : |
24.10.2007 |
IDENTIFICATION DETAILS
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Name : |
EL EZZ FLAT STEEL COMPANY SAE |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
25.07.1998 |
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Com. Reg. No.: |
33296 |
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Legal Form : |
Societe Anonyme Egyptienne – SAE (Egyptian Joint Stock
Company) |
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Line of Business : |
Subject operates a new flat steel products plant |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
US$ 5,000,000 |
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Status : |
Excellent |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
SUMMARY
Company Name :
EL EZZ FLAT STEEL COMPANY SAE
Country of Origin :
Legal Form :
Egyptian Joint Stock Company
Registration Date :
25th July 1998
Commercial Registration Number :
33296
Issued Capital :
US$ 270,000,000
Paid up Capital :
US$ 270,000,000
Total Workforce :
1,000
Line of Business :
Subject operates a new flat steel products plant.
Financial Condition :
Improving
Payments :
Nothing detrimental uncovered
COMPANY NAME
EL EZZ FLAT STEEL COMPANY SAE
ADDRESS
Registered & Physical Address
Street :
Area : Mohandessin,
Town :
Country :
Telephone : (20-2) 7622144
/ 7622100 / 7622166 / 7622177
Facsimile : (20-2) 7612288
Email : ir@ezzgroup.com
Premises
Subject operates from a large suite of offices that are rented and
located in the Central Business Area of Cairo.
Branch Office (s)
Location Description
Special Economic Free Zone Owned
Factory Premises
Ein Sokhna
Tel: (20-12) 250361
Mohandessin,
Tel: (20-2) 3029952 / 3030493 / 3367277
Fax: (20-2) 3058872
KEY PRINCIPALS
Ahmed Abd El Aziz Ezz Chairman
Paul Chekaiban General
Manager
Mahmoud Abdel Nabi Assistant
General Manager
Ahmed Nabil Finance
Manager
George Matta Marketing
Manager
Samir Noaman Sales
Manager
LEGAL FORM &
OWNERS
Date of Establishment : 25th
July 1998
Legal Form : Societe Anonyme
Egyptienne – SAE (Egyptian Joint Stock Company)
Commercial Reg. No. : 33296
Issued Capital : US$ 270,000,000
Paid up Capital : US$ 270,000,000
Name of Shareholder
(s) Percentage
Al Ezz Steel Holdings Co (ESH) 54%
Danflat * 18%
National Bank of
24,
Tel : (20-2) 3924175 ]
Fax : (20-2) 3924143 ]
] 28%
Banque Misr ]
Tel : (20-2) 3912711 / 3912106 ]
Fax : (20-2) 3919779 ]
*Danflat is owned by controlled by Danieli & Co Officine SpA, which
in turn is a pre-eminent metallurgical plant-maker based in Buttrio, near
Udine, Italy with subsidiaries and major manufacturing facilities in Italy,
Sweden, France, India and the USA. Danieli is regarded as one of the leaders in
the metallurgical plant engineering sector with particular expertise in the
design, manufacturing and installation of hot strip mills and cold rolling
mills. Danieli is one of the “big five” metallurgical plant-makers in the world
who altogether hold a 70% combined share of the world market
Note to the Legal Form
The Egyptian Company Law provides that the capital of a Societe Anonyme
Egyptienne - SAE – should not be less than £E 500,000 if shares are offered to
the public and £E 250,000 if not. If shares are offered to the public they are
freely transferable, if not, transfer may be restricted. Liability of
shareholders is limited.
AFFILIATED
COMPANIES
Subject is a member of the El Ezz Group of companies, which has
diversified operations covering such sectors as shipping, steel production and
processing, building and construction materials. The group employs some 2,200
people and has a group turnover of approximately $ 470 million with total
investment in plants, equipment and fixed assets exceeding $ 600 million. The
El Ezz Group of companies includes the following concerns :
Al Ezz Steel Rebars Co SAE
Mohandessin,
Tel: (20-2) 7622144 / 7622166
/ 7622177
Fax: (20-2) 7622188
Al Ezz Porcelain Company Sae (Gemma)
8 El Sad
Dokki,
Tel: (20-2) 3600150 / 3365325 / 3365791
Fax: (20-2) 3365337 / 3600155
El Ezz Shipping Lines Ltd
8 El Sad
Dokki
Tel : (20-2) 3600150
Fax : (20-2) 3300155
El Ezz Foreign Trade
8 El Sad
Dokki,
Tel : (20-2) 3600150
Fax : (20-2) 3300155
El Ezz Reinforced Steel Industries
8 El Sad
Dokki
Tel : (20-2) 3600150
Fax : (20-2) 3300155
El Ezz Heavy Industries SAE (EHI)
8 El Sad
Dokki,
Tel : (20-2) 3365346 / 3600150 / 3369232
Fax : (20-2) 3600155
LINE OF BUSINESS
Operations : Subject operates a new flat steel products plant.
The plant began commercial production in October 2002 and has an
innovative design of one continuous process from steel melt to rolled flat
sheets, ultimately yielding a capacity 1.2 million tonnes per annum.
The plant was built by Danieli & Co. of Italy and includes a thin
slab caster, allowing it to produce very thin gauges of steel sheets, going
down to a minimum thickness of just 0.8 mm.
The company provides flat steel to
Import Countries :
Subject has a workforce of approximately 1,000 employees.
FINANCIAL
HIGHLIGHTS
Financial highlights provided by outside sources are given below :
Currency : Egyptian Pounds (£E)
Year
Ending 31/12/06:
Total Revenue £E
2,331,000,000
Net Loss £E 54,000,000
Local sources consider subject’s financial condition to be Improving.
BANKERS
National Bank of
24,
Tel : (20-2) 3924175
Fax : (20-2) 3924143
PAYMENT HISTORY
No complaints regarding subject’s payments have been reported.
Date of transaction February
2005
Credit amount 100,000
Amount overdue 0
Payment terms 60
days
Payment Method Letters
of Credit
Paying record No
Complaints
Currency
GENERAL COMMENTS
Opinion on the credit figure of US$ 100,000:
El Ezz Flat Steel Company SAE was incorporated in July 1998 and operates
a new flat steel products plant. Commercial Production began in October 2002
with annual capacity of 1.2 million tonnes.
Subject is a member of the El Ezz Group of companies, which is amongst
the largest in
Maximum suggested credit figure: US$ 5,000,000
\RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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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%)