MIRA INFORM REPORT

 

 

Report Date :

15.11.2011

 

IDENTIFICATION DETAILS

 

Name :

EMIRATES STEEL INDUSTRIES (ESI)

 

 

Formerly Known As :

EMIRATES IRON & STEEL FACTORY (EISF)

 

 

Registered Office :

Corniche Road Mussafah Industrial Area PO Box 9022 Abu Dhabi

 

 

Country :

United Arab Emirates

 

 

Year of Establishment :

1998

 

 

Legal Form :

Public Joint Stock Company

 

 

Line of Business :

Manufacture of reformed steel bars.

 

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

 

Maximum Credit Limit :

US$ 2,000,000

Status :

Good

Payment Behaviour :

Regular

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

UAE

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                                     : EMIRATES STEEL INDUSTRIES (ESI)

Also Known As                                      : EMIRATES IRON & STEEL FACTORY (EISF)

Country of Origin                                    : Abu Dhabi, United Arab Emirates

Legal Form                                            : Public Joint Stock Company

Registration Date                                   : 1998

Trade Licence Number                            : 1005740

Chamber Membership Number                : 217434

Issued Capital                                        : UAE Dh 1,000,000

Paid up Capital                                      : UAE Dh 1,000,000

Total Workforce                                     : 600

Activities                                               : Manufacture of reformed steel bars.

Financial Condition                                 : Undetermined

Payments                                             : Nothing detrimental uncovered

Recommended Credit Limit                     : US$ 2,000,000

Person Interviewed                                 : Abdulaziz Al Amiri, Public Relations Manager

 

COMPANY NAME

 

EMIRATES STEEL INDUSTRIES (ESI)

 

ALSO KNOWN AS: EMIRATES IRON & STEEL FACTORY (EISF)

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Corniche Road

Area                 : Mussafah Industrial Area

 

PO Box             : 9022

 

Town                 : Abu Dhabi

Country             : United Arab Emirates

 

Telephone         : (971-2) 5511187

Facsimile          : (971-2) 5510911 / 5515113

Email                : inquiry@esi-steel.com

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Abu Dhabi.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Suhail Al Amry                                                                                  Chairman

 

·       Saeed Al Rumaithy                                                                           General Manager

 

·       Juma Al Mansouri                                                                             Commercial Manager

 

·       Masoud Abu Dayaki                                                                          Finance Manager

 

·       Abdulaziz Al Amiri                                                                             Public Relations Manager

 

·       Mahmoud Al Hamadi                                                                         Administration Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1998 (Commercial production began in October 2001)

 

Legal Form                  : Public Joint Stock Company

 

Trade Licence No.       : 1005740 (Expires 09/02/2012)

 

Chamber Member No. : 217434

 

Issued Capital              : UAE Dh 1,000,000

 

Paid up Capital            : UAE Dh 1,000,000

 

Name of Shareholder (s)                                     Percentage

 

·       General Holding Corporation                                           100%

PO Box 4499

Abu Dhabi

Tel: (971-2) 6144444

Fax: (971-2) 6312857

Email: info@ghc.ae

 

     General Holding Corporation is wholly owned by the Abu Dhabi government.

 

 

AFFILIATED COMPANIES

 

·       Abu Dhabi Basic Industries Corporation (ADBIC)

Abu Dhabi

 

 

OPERATIONS

 

Activities: The company specialises in manufacturing high yield reformed steel bars (or rebar), in sizes 10mm to

32mm in diameter and 12 meters in length, direct reduced iron, steel billets, heavy sections, wire rod, and rebar in coil.

 

The company has been involved in prestigious projects such as the Emirates Palace Hotel in Abu Dhabi, the Corniche Development project, the Dubai Airport Expansion project, the Dubai Marina Towers, Shangri La Hotel in Dubai, the Four Seasons Hotel in Doha and water and power projects in Sharjah and Fujairah amongst others.

 

With a view to achieve the strategic ambitions set by GHC and the Government of Abu Dhabi, Emirates        Steel has initiated an expansion program based on a phased approach:

In January 2006, the Company launched its Phase 1 Expansion program involving the purchase and   construction of a 1.6 million MTPA Direct Reduction Plant (DRP), a 1.4 million MTPA Steel Melt Plant (SMP), a 0.62 million MTPA Rebar Rolling Mill (RM2), a 0.48 million MTPA Wire Rod and Coil Rolling Mill (RM3), together with associated infrastructure and facilities.

In February 2008, Emirates Steel launched its Phase 2A Expansion program comprising a 1.6 million MTPA DRP, 1.4 million MTPA SMP, and associated infrastructure and facilities.

In November 2009, the Company launched its Phase 2B Expansion program comprising a 1 million MTPA Heavy Sections Rolling Mill (RM4).

     Phase 1 was successfully completed in June 2009; Phase 2A was commissioned in early 2011 and Phase

     2B will be commissioned by early 2012. For further growth, Emirates Steel is considering a number of

     potential Greenfield investment opportunities and acquisitions.

 

Import Countries: Europe and Asia

 

Subject has a workforce of approximately 600 employees.

 

 

FINANCIAL DATA

 

Companies registered in Abu Dhabi, United Arab Emirates are not legally required to make their accounts public and no financial information was released by the company or submitted by outside sources.

 

 

BANKERS

 

·       National Bank of Abu Dhabi

Sheikh Khalifa Street

PO Box: 4

Abu Dhabi

Tel: (971-2) 6345777 / 6327113 / 6335262

Fax: (971-2) 6336078

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

 

GENERAL COMMENTS

 

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.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.50.08

UK Pound

1

Rs.80.36

Euro

1

Rs.68.83

 

 

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

--

NB

                                       New Business

 

--

 

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.