MIRA INFORM REPORT

 

 

Report Date :

01.03.2011

 

IDENTIFICATION DETAILS

 

Correct Name :

SUEZ STEEL CO (SSC)

 

 

Registered Office :

Adabeya Port, Ataka, P O Box 35, Suez

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2010

 

 

Year of Establishment :

1997

 

 

Com. Reg. No.:

31285, Suez

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Production and export of steel billets

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

US$ 1,000,000

Status :

Satisfactory

Payment Behaviour :

No Complaints

Litigation :

Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

ECGC Country Risk Classification List – June 30, 2010

 

Country Name

Previous Rating

                   (01.04.2010)                  

Current Rating

(30.06.2010)

Egypt

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

SUMMARY

 

Company Name                         : SUEZ STEEL CO (SSC)

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 1997

Commercial Registration Number            : 31285, Suez

Issued Capital                                        : £E 136,461,600

Paid up Capital                                      : £E 136,461,600

Total Workforce                         : 1,100

Activities                                               : Production and export of steel billets

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                         : Steady

Recommended Credit Limit                     : US$ 1,000,000

 

 

COMPANY NAME

 

SUEZ STEEL CO (SSC)

 

 

company ADDRESS

 

Registered & Physical Address

Location            : Adabeya Port

Area                 : Ataka

PO Box             : 35

Town                 : Suez

Country : Egypt

Telephone         : (20-62) 3230803 / 3230805 / 3230807 / 3230806 / 3230808

Facsimile          : (20-62) 3230804 / 3230816 / 3230800 / 3230802

Mobile               : (20-10) 5439739

Email                : info@suezsteel.com

 

Premises

Subject operates from a large suite of offices and production facilities that are owned and located in the Industrial Area of Suez.

 

Branch Office (s)

 

     Location                                                                                          Description

 

·       34 Syria Street                                                                                  Rented office premises

3rd Floor, Flat No. 7

Mohandessin

     Cairo

     Tel: (20-2) 23744108

     Fax: (20-2) 23744109

 

·       112 26th July Street                                                                            Rented office premises

Zamalek

     Cairo

     Tel: (20-2) 27360715

     Fax: (20-2) 27360017

 

 

KEY PRINCIPALS

 

     Name                                                                                              Position

 

·       Gamal El Garhy                                                                                Chairman

 

·       Rafik El Daw                                                                                     Managing Director

 

·       Samir Naga                                                                                      Director

 

·       Nemr Akkad                                                                                     Director

 

·       Abdel Karim Mohamed El Rafaie                                                        Director

 

·       Ashraf Abdel Hamid Abdel Rehim                                                       Director

 

·       Medhat Kabary Abdel Tawab                                                              Director

 

·       Dr Sameh Ibrahim                                                                             Director

 

·       Hesham Bolous El Daw                                                                     Director

 

·       Nagui Rakha                                                                         Finance Manager

 

·       Mohamed Omara                                                                              Administration Manager

 

·       Fouda Zaki                                                                                       Purchasing Manager

 

·       Tarek Darwish                                                                                   Commercial Manager

 

·       Sayed Abdel Rahman                                                                        Human Resources Manager

 

·       Rony Assaf                                                                                       Technical Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1997

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.  : 31285, Suez

 

Authorised Capital       : £E 600,000,000

 

Issued Capital              : £E 136,461,600

 

Paid up Capital            : £E 136,461,600

 

Name of Shareholder (s)                                               Percentage

 

·       Red Sea Iron                                                     94.8%

Cairo

 

·       Private investors and businessmen                                   5.2%

 

 

OPERATIONS

 

Activities: Engaged in the production and export of steel billets.

 

It is reported that the Egyptian steelmaker Suez Steel Co has started the test run of its new reinforcing steel rolling mill with an annual production capacity of 550,000 mt of long products.

 

The construction of the new reinforcing steel rolling mill, located in Ataka industrial zone in Suez, amounted to £E 620 million and is expected to provide 500 new jobs. The mill's production will be directed to the Egyptian domestic market, which sees a strong demand for reinforcing steel products.

 

The new rolling mill is part of the Suez Steel's comprehensive developments plan, which includes also the     construction of a new direct reduction mill with an annual capacity of 1.95 million mt, expected to start    production in 2011, and the construction of a new steel billets mill with a capacity of 2.06 million mt, which  will also come on stream in 2011. The total cost of the company's expansion project will amount to £E 6 billion.

 

Production Capacity: 600,000 tonnes per annum

 

Import Countries: Turkey, Italy, China, South Korea, United States, Canada, Australia, Switzerland and Germany

 

Export Countries: Jordan, United Arab Emirates, Sudan and Saudi Arabia

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,100 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

                                                Year Ending 31/12/09:                Year Ending 31/12/10:

 

Total Sales                                £E 1,500,000,000                       £E 2,780,431,749

 

Local sources consider subject’s financial condition to be Good.

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

·       National Bank of Egypt

24 Sherif Street

     Cairo

     Tel: (20-2) 23924175

     Fax: (20-2) 23924143

 

·       Banque du Caire SAE

22 Adly Street

PO Box: 1495

Cairo

Tel: (20-2) 23904554

Fax: (20-2) 23908992

 

·       BNP Paribas Egypt

4A Ibn Zinky Street

Zamalek

Cairo

Tel: (20-2) 27377791 / 27377792

       Fax: (20-2) 27377793

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              January 2006                           October 2007

Credit amount                                        69,000                                      100,000

Amount overdue                         0                                              0

Payment terms                                      90 days                                     60 days

Payment Method                                   Letters of Credit                         Letters of Credit

Paying record                                        No Complaints                           No Complaints

Currency                                               Pounds Sterling                         US Dollars

 

 

GENERAL COMMENTS

 

Suez Steel Co was established in 1996 and has grown into a leading concern in the Egyptian steel industry.

 

During the course of this investigation nothing detrimental was uncovered regarding subject’s operating history or the manner in which payments are fulfilled. As such the company is considered to be a fair trade risk and the above credit figure is within subject’s financial means.

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.18

UK Pound

1

Rs.72.79

Euro

1

Rs.62.15

 

 

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

Capability to overcome financial difficulties seems comparatively below average.

 

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

 

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%)

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.