MIRA
INFORM REPORT
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Report Date : |
26.10.2007 |
IDENTIFICATION DETAILS
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Name : |
HAIFA CHEMICALS LTD. |
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Registered Office : |
Haifa Bay Industrial Zone, |
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Country : |
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Date of Incorporation : |
16.3.1966 |
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Com. Reg. No.: |
52-002721-0 |
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Legal Form : |
Public Limited Liability Company |
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Line of Business : |
Developers,
manufacturers, exporters and marketers of special fertilizers for agriculture
and horticulture |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Name and address
HAIFA
CHEMICALS LTD.
P.O.B. 10809
Haifa Bay Industrial Zone,
Telephone 972 4 846 96 11
Fax 972 4 846 96 30
HISTORY
Originally
incorporated as a public limited liability company and registered as such as per
file No. 52-002721-0 on the 16.3.1966.
Converted into a
private limited company and registered as such as per file No. 51-136932-4 on
the 28.2.1989.
Re-converted into a
public limited liability company and registered as per file No. 52-003945-4 on
the 2.6.1993.
SHARE CAPITAL
Authorized share
capital
SHAREHOLDERS
Subject is fully owned
by POALIM TRUST SERVICES LTD., which hold shares in trust on behalf of
TRANS-RESOURCES INC. (TRI), a foreign company registered in the
In 1986, TRI acquired
its shares in subject from the State of Israel.
DIRECTORS
1. Arie Genger,
2. Zeev Tadmor,
3. William Daud.
GENERAL MANAGER
Avi Philosoph.
BUSINESS
Developers,
manufacturers, exporters and marketers of special fertilizers for agriculture
and horticulture - e.g. potassium nitrate, phosphoric acid, sodium tri-polyphosphate,
special NPK fertilizers, magnesium nitrate – and chemicals for the industry
(food additives).
Over 90% of sales are
exports to more than 100 countries worldwide.
Among local clients:
GALIL CHEMICALS.
Among local suppliers:
LINE SAKIM, CHEMITAL, EMIL K. METALS, ARDAN CONTROL-TECH, DEPOTCHEM, ITZHAK
SHINITZKY, etc.
Operating from a large
plant in the Haifa Bay Industrial Zone,
Also operating from
further offices, storage facilities and from sales offices worldwide.
Having 550 employees
(some
MEANS
Investments in both of
the Group's local plants amounted to US$ 210 million.
In March 2006, it was reported that ISRAEL CHEMICALS is considering a possible acquisition of subject. As part of the reports, it was also mentioned that subject’s debts are estimated at over US$ 200 million and that its equity is estimated at US$ 20 million.
In August 2006 ISRAEL CHEMICALS reported it is engaged in the pricing on subject, which is in financial distress.
Subject is an
“Approved Enterprise” and as such enjoys tax benefits and state incentives. In
December 2002, the Investment Center Administration approved a US$ 6.6 million
investment plan for the expansion of the Group’s plant in Mishor Rotem.
Other financial data
not forthcoming.
There are 17 charges
for unlimited amounts registered on the company's assets, in favor of the State
of Israel and local banks.
ANNUAL SALES
Consolidated 2002 sales reported to be US$ 278,000,000.
Consolidated 2003 sales reported to be US$ 313,000,000.
Consolidated 2004 sales reported to be US$ 350,000,000.
Consolidated 2005 sales claimed to be US$ 390,000,000, 95% of which for export.
2006 figures not
forthcoming, however according to officials there has been a rise in sales from
2005.
2006 consolidated
estimated to exceed US$ 400,000,000.
OTHER COMPANIES
HAIFA CHEMICALS SOUTH
LTD., manufacturers of fertilizers, potassium nitrate, etc.
HAIFA CHEMICALS
HOLDINGS LTD.
HAIFA NUTRITECH INC.,
ELGO IRRIGATION LTD.,
90%, manufacturers, designers, developers, marketers and exporters of
irrigation equipment, drip irrigation systems, etc. for gardening and
agricultural use. A public limited liability company whose shares are traded on
the Tel Aviv Stock Exchange, market value US$ 7.7 million.
BANKERS
Bank Hapoalim Ltd., Central Branch (No. 600), Tel Aviv.
Bank Leumi LeIsrael Ltd., Central Branch (No. 800), Tel Aviv.
CHARACTER AND REPUTATION
Subject is ISO 9001,
ISO 14001, OHSAS 18001 certified. Also GMP qualified for food products.
In May 2001, it was
reported that following the heavy losses in 2000, subject intends to retrench
20% of its employees and to shut down several of its manufacturing lines.
In recent years,
several lawsuits and requests for class motion acts were filed against subject
and other plants regarding the polluting of the
In April 2007, the
Haifa Magistrate Court rejected the motions for class actions against subject
and others, considering that charging the plants may have sever economic
implications on the plants, calling for the Local Authorities to take the
necessary actions to avoid the environmental damages.
In January 2002, it
was reported that Industry Development Bank claimed that subject is not meeting
the terms of a US$ 21 million loan that a banking consortium granted subject
several years ago.
It was reported that
subject’s equity dropped to under
In March 2002, it was
reported that during 2001, subject’s parent, TRI, failed to meet the interest
payment over a US$ 204 million debt. The debt, created by an issuing of bonds,
is to be paid back by 2008.
In December
In February
In April 2003, it was reported that subject’s General Manager stated that during the recent years, subject suffered from heavy losses, however they managed to become profitable in 2003.
In March 2004, it was reported that subject signed a deal to sell nitrate potassium to global television manufacturers, for a sum of US$ 8 million.
In January 2005, it was reported that subject’s creditors (mainly banks) are getting impatient following subject’s financial situation.
In May 2005, it was reported that subject will pay ROTEM a sum of US$ 5 million for supplies.
In March 2006 subject, who holds with affiliates 89.7% of ELGO IRRIGATION LTD., signed a MoU to sell its shares in ELGO in consideration of US$ 10.7 million. In July 2006 ELGO announced it is still negotiating with MELLOWBRIDGE PTY LTD. and other investors the acquisition.
In May 2006, it was reported that subject won 9 contracts,
estimated at
In October 2006 it was
published that Bank Hapoalim, the major creditor of subject, has been trying to
find buyers to subject during the last 2 years, so far without success.
Arie Genger,
who controls subject, used to also control (75%) a public company LUMENIS LTD., developers, manufacturers,
exporters and marketers of medical equipment. LUMENIS
entered grave financial troubles and its shares were suspended from traded on
the Nasdaq Stock Exchange. Its chief creditor, Bank Hapoalim, searched buyers and in December
In December 2006, it was reported that subject has invested
According to the Chairman of the Chemical, Pharmaceutical and Environment Division at the Industrialists Association, total sales of the branches in 2006 witnessed a remarkable 12.6% growth to US$ 17.4 billon, after in 2005 sales increased by 10% from 2004.
2006 exports of the branch were US$ 8.8 billion (some one third attributed to the chemical industry), a 15.7% increase from 2005, and sales to the local market reached US$ 8.6 billion, a 10% increase from 2005.
The chemical and pharmaceutical industries are the 2nd
largest export branch (after the hi-tech) and comprise 30% of
Purchasing abroad amounted to US$ 1.5 billion in 2006.
The branch projected sales in 2007 include a 15% rise in sales for export (to US$ 10 billion) and 12% rise in total sales (to US$ 19.5 billion).
SUMMARY
Good for maximum unsecured credit of 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/normal. |
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%)