MIRA INFORM REPORT

 

 

Report Date :

16.04.2012

 

IDENTIFICATION DETAILS

 

Name :

BELORUSSKIY AVTOMOBILNIY ZAVOD OAO

 

 

Formerly Known As :

ZAVOD TORVYANOGO MASHINOSTROENIA

 

 

Registered Office :

40 let Oktyabrya Street 4 Zhodino 222160

 

 

Country :

Belarus

 

 

Year of Establishment :

1948

 

 

Legal Form :

Open Joint Stock Company

 

 

Line of Business :

Manufacturers of mining equipment, mining dump trucks, construction & road-building equipment, vehicles for mine-servicing works, underground vehicles, vehicles for metallurgical works and railway freight cars.

 

 

No. of Employees :

12,000 plus

 

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 :

B ROUBLE 50,000,000,000

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 – March 31st, 2012

 

Country Name

Previous Rating

(31.12.2011)

Current Rating

(31.03.2012)

Belarus

B2

B2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company Name

 

Belorusskiy Avtomobilniy Zavod OAO (Correct)

OJSC Belarusian Autoworks or OJSC Belaz (Requested)

 

ADDRESS

 

Street               : 40 let Oktyabrya Street 4

 

Town                  : Zhodino 222160

Country              : Belarus

 

Telephone         : (375 1775) 32782 / 32623 / 33737 / 32313 / 33448 (Aleksandr Nikolaevich Pushkin) / 71135 (Tatyana Stepanovna Litvinkovich) / 36073 (Sergey Vladimirovich Chumakov)

Fax                   : (375 1775) 33970 / 70137

E-Mail               : office@belaz.minsk.by / a.pushkin@belaz.minsk.by / t.litvinkovich@belaz.minsk.by

Website            : www.belaz.by

 

Trading Style     : BelAZ

 

Shortform Name : BelAZ OAO / BelAZ OJSC

 

Extended Name : BelAZ Otkrytoye Aktsyonernoye Obshchestvo

 

English Translation : Belarusian Autoworks OJSC

 

Formerly known as : Zavod Torvyanogo Mashinostroenia / Zavod Meloirativnykh i Dorozhnyh Mashin “Dormash” / Predpriyatie Belorusskiy Avtomobilniy Zavod / Belorusskiy Avtomobilniy Zavod RUPP

 

 

SENIOR COMPANY PERSONNEL

 

   Name                                                                         Position

 

1. Petr Aleksandrovich Parkhomchik                    General Director

 

2. Vladimir Fedorovich Volchok                                       First Deputy General Director 

 

3. Aleksandr Nikolaevich Egorov                          General Designer

 

4. Oleg Tadeushevich Mazuro                                         Deputy General Director / Commerce

 

5. Dmitriy Ivanovich Kharitonchik                          Deputy General Director / Quality          

 

6. Anatoliy Alekseevich Rovba                             Deputy General Director / Production

 

7. Andrey Aleksandrovich Doronin                       Deputy General Director   / Economics

 

8. Aleksandr Antonovich Batyuk               s         Deputy General Director  / Social   

 

9. Stanislav Eduardovich Yakubovich                   Deputy General Director / Information

 

10.Anatoliy Vasilevich Korotun                            Deputy General Director

 

11.Vladimir Vladimirovich Rudkovskiy                              Marketing Director

 

12.Radik Grigorievich Mukhtasarov                                  Assistant to General Director

 

13.Vladimir Mikhailovich Semashko                     Assistant to General Director

 

14.Aleksandr Miroslavovich Botvinnik                  Assistant to General Director

 

15.Viktor Viktorovich Rudiy                                 Chief Technology Officer

 

16.Tatyana Stepanovna Litvinkovich                                  Head of Financial Department 

 

17.Aleksandr Nikolaevich Pushkin                                   Chief Accountant

 

18.Sergey Vladimirovich Chumakov                      Manager 

 

Total Employees            : 12,000 plus

 

 

PAYMENTS

 

No complaints have been heard regarding payments from local suppliers or banks.

 

Subject is a state owned company operating since 1948. Subject is one of the leading manufacturers of mining equipment with market share 33% in the world. Subject is also member of Belorusskiy Avtomobilniy Zavod PO (Production Enterprise).

 

We consider it is acceptable to deal with subject for LARGE amounts,

although it is normal accepted practice for international suppliers to deal on secured terms with Belarus importers.

 

Opinion on maximum credit : B ROUBLE 50,000,000,000

 

Trade risk assessment: Normal

 

SIGNIFICANT CHANGES

 

BELARUSIAN BELAZ TO BE ASSEMBLED IN KUZBASS

 

10 April 2012, (www.tvr.by): The Russians are ready to build a new joint plant in Kemerovo. 90 ton cars are planned to be assembled here.

 

Vadim Shcheglov reports: Coal mining in Kuzbass is the main source of income of Kemerovo Region. Zhodino BelAZ has already been tested in Kuzbass. Today businessmen of Kemerovo arrived in Zhodino with a proposal - to assemble the Belarusian giants jointly.

Officials, businessmen and journalists of Kemerovo were met as old friends - Kuzbass dealers are the largest customers of BelAZ. Last year Russia purchased more than half of trucks produced at the Belarusian Autoworks. The Russians came up with a proposal to build a new plant in Kemerovo.

(Mikhail Fedyaev, President of the holding company)

Such cooperation will be profitable both for Belarusian and Russian producers - they will gradually squeeze competitors from the markets of the partner under the single economic space. A promising line of development is creation of the so-called new generation of vehicles with capacity of 220 and 360 tons.

The Russians are particularly interested in a 450 ton truck. It will be the biggest car in the world.

 

BELAZ TRUCK TO HOLD FIRST BELARUSIAN IPO

 

2 April 2012, (www.rian.ru): Belarusian truck maker Belarusian Autoworks (BelAZ) is to hold an initial public offering, the first time a Belarusian enterprise has gone to the markets, General Director Pyotr Parkhomchik said on Monday.

 

"A working group to prepare the enterprise for the IPO has been established in BelAZ. The company is going to transfer accounting to international financial reporting standards for that purpose," Parkhomchik told state Belarusian Economy magazine, without specifying where BelAZ would try to float.

 

The company is likely to start contacts with foreign banks to conduct the IPO by the end of 2012, Belarusian First Deputy Prime Minister Vladimir Semashko said in late February.

 

BelAZ had planned last year to trade on the Frankfurt Stock Exchange in cooperation with Deustche Bank, but the bank later pulled out of the project and curtailed its cooperation with Belarus.

 

"BelAZ will be the first Belarusian company to hold an offering. [Belarusian President Alexander] Lukashenko also said some time ago that BelAZ will be the first company which Belarus will try to sell on the international markets," VTB Capital analyst Vladimir Bespalov told RIA Novosti.

 

BelAZ is included in a Belarusian privatization plan in which Minsk hopes to raise $2.5 billion.

 

Minsk would face difficulties selling the company's shares as "Belarus values its assets rather highly and this is a big problem if investors want to pay the proposed price with Belarusian risk," Bespalov said.

 

BelAZ says it will provide future investors with full information to promote the company's stock on foreign markets, General Director Parkhomchik said.

 

BelAZ manufactures heavy-duty and super-size mining dump trucks, half of which are exported to Russia, the firm says.

 

BELAZ TO INCREASE EXPORTS TO CHINA IN 2011

 

26 April 2011: (www.belaruschina.by): OJSC "Belarusian Autoworks" (BELAZ) is planning to significantly increase its exports to China in the current year, Mr. Piotr Parkhomchik, the General Director of the enterprise told reporters. Nowadays’ exports to the country amount to $50 mln.  

 

 Today 95-96% of the company's output is exported. BelAZ trucks are supplied to the markets of the CIS countries, Estonia, Czech Republic, South Africa, Chile, China, Vietnam, Iran. "We have gained a foothold in the Chinese market, our exports there range within $50 million. This year the figure will significantly increase due to the established joint venture in China," Mr. Piotr Parkhomchik said.

 

 He stressed that this was a challenging market, but worth the efforts because its capacity in dump truck segment was huge. The Chinese market has all the leading automotive vehicle manufacturers there. "Our position here is strong; we’ve gained about 15% of the Chinese dump truck market. This is a great success. Moreover, we’ve switched from the supply of light duty trucks – 30-45 tonnes to the supply of heavy duty trucks – 136-220 tonnes, Mr. Piotr Parkhomchik pointed out. According to him, just over the last three years China was delivered over 150 production units. 

 

 The BelAZ General Director pointed out that the enterprise was actively working at sales geography expansion. The work resulted in lucrative contracts signed in QI/2011. For instance, $40 million worth of dump trucks will be delivered to Mongolia, nearly $35 million – to China. More than that, BelAZ is currently working to win a share of the Indian market, has successfully negotiated supplies to Indonesia. Talks are in progress on deliveries of mining trucks to Australia, where the first batch of Belarusian machines already operates. Negotiations to get a regular consignment of BelAZ trucks are being held with the Chile partners of the enterprise (16 dump trucks of different load capacity). A joint company is now promoting BelAZ on the U.S. market.

 

 In times to come, exports to the non-CIS countries are projected to increase from 20% (in 2010) to 21-22%. Forecasts say deliveries to the CIS member states are to grow too, whereas exports to Russia will drop from 60% (in 2010) to traditional 50-52%.

 

 OJSC "Belarusian Autoworks" (BELAZ) is a major world manufacturer of mining dump trucks of heavy-duty and super-size load capacity, as well as the other heavy vehicles, being used in mining and construction branches of industry. All achieved by BELAZ within 60-year old history is the result of implementation of the enterprise main policy: the fullest satisfaction of the customer’s needs, with which "Belarusian Autoworks" has long-term effective cooperation.

 

POWER MACHINES AND BELAZ SIGNED COOPERATION AGREEMENT

 

30 October 2007, (www.power-m.ru): Igor Kostin, CEO of Power Machines, and Petr Parkhomchik, CEO of Republic Unitary Manufacturing Enterprise (RUME) BelAZ (Republic of Belarus), signed a Cooperation Agreement in the field of manufacture and supply of tractive electric drives for large trucks and their corresponding service.

 

The Agreement shall be valid for two years till the end of July, 2009. In the frame of the Agreement Power Machines shall start batch production of kits of variable frequency asynchronous drives for heavy-duty trucks of 136 tones capacity including service and shall work-out and manufacture asynchronous drives prototype kits for trucks of 240 and 320 tones capacity and their subsequent batch production.

 

Following the results of trial operation of equipment the companies are going to study the possibility of development of cooperation in the field of production of separate elements and components for truck asynchronous drives.

 

Earlier Power Machines designed and manufactured for RUME BelAZ a prototype variable frequency asynchronous drive for heavy-duty trucks of 136 tones capacity which became the first development of this kind in the Russian electrical engineering market. Variable frequency asynchronous drives of Power Machines production with its technical and operational characteristics can compete with analogous equipment of Siemens and GE production.

 

PRINCIPAL BANKERS

 

NAME               : BPS-SBERBANK OAO

 

Branch              : 40 let Oktyabrya Street 19A

Town                 : Zhodino 222160  

 

Telephone         : (375 1775) 34823

Fax                   : (375 1775) 34823 

 

The company also has an account with the following banks:

 

1. Priorbank OAO

   Banking Services Centre 101

   Timiryazeva Street 65A

   Minsk 220035

   Telephone: (375 17) 289 9702

   Fax      : (375 17) 289 9713

 

2. Belarusbank ASB

   pr. Dzerzhinskogo 69/1

   Minsk

   Telephone: (375 17) 279 4879 / 279 4676

   Fax      : (375 17) 279 4804

 

 

FINANCIAL INFORMATION

 

State owned companies in Belarus are not required to publish or disclose balance sheets. However, the subject interviewed offered

the following information :

 

Sales Turnover               : B ROUBLE 2,009,161,000,000 - 2010 - exact

                                     : B ROUBLE 5,339,304,000,000 - 2011 - exact 

 

Net Profit                       : B ROUBLE   315,117,000,000 - 2010 - exact

                                                : B ROUBLE 2,839,703,000,000 - 2011 - exact  

 

Net Profit (after tax)        : B ROUBLE 2,083,305,000,000 - 2011 - exact

 

Financial year ends 31 December.

 

 


LEGAL STATUS AND HISTORY

 

Date Started : 1948

 

History : The subject company was established in Belarus in 1948 under the name Zavod Torvyanogo Mashinostroenia. In November 1951 subject changed its name to Zavod Meloirativnykh i Dorozhnyh Mashin “Dormash”. On 17 April 1958 subject was renamed to Predpriyatie Belorusskiy Avtomobilniy Zavod. In 2003 subject reregistered and became Belorusskiy Avtomobilniy Zavod RUPP. In 2009 subject was converted into an Open Joint Stock Company.

 

Tax No.: UNP 600038906

 

Statistic Code: OKPO 05808712 

 

Authorised Capital : B ROUBLE 1,413,319,600,000 (as of January 2012)

 

Paid-Up Capital : B ROUBLE 1,413,319,600,000 (as of January 2012)

 

Otkrytoye Aktsyonernoye Obshchestvo (open joint stock company) with the following sole shareholder :

 

Republic of Belarus                               100%

 

Subject is member of Belorusskiy Avtomobilniy Zavod PO (Production Enterprise), which also includes:

 

1. Mogilevskiy Avtomobilniy Zavod imeni S. M. Kirova (MoAZ)

   Vitebskiy Avenue 5

   Mogilev 212601

   Telephone: (375 222) 422 564

   Fax      : (375 222) 422 564

 

2. Mogilevskiy Vagonostroitelniy Zavod SZAO

   Vitebskiy Avenue 5

   Mogilev 212601

   Telephone: (375 222) 443 415

   Fax      : (375 222) 422 564

 

3. Starodorozhskiy Mekhanicheskiy Zavod OAO

   Krivosheina Street 1

   Stariye Dorogi 222932

   Minskaya Oblast

   Telephone: (375 1792) 55664

   Fax      : (375 1792) 55519

   Managing Director: Igor Antonovich Bontsevich

   Est.: 1972

 

4. Kuzlitmash OAO

   Zholtovskogo Avenue 109

   Pinsk 225710

 

   Brestskaya Oblast

   Telephone: (375 165) 371 380 / 347 867

   Fax      : (375 165) 371 425   

   E-Mail   : klm@tut.by

   Est.: 1971

   Managing Director: Vasiliy Andreevich Chekulaev

 

5. BelAZ-Servis OAO

   Brestskaya Street 31   

   Zhodino 222160

   Tax No.: UNP 600039346

   Capital: B ROUBLE 3,738,763,600

 

Affiliated companies of the subject company :

 

Associates

 

1. Torgoviy Dom BelAZ ZAO

   Admirala Lazareva Street 68

   Moscow 117041

   Russia  

   Telephone: (7 495) 956 4140

   Fax      : (7 495) 956 4140

   E-Mail   : tdbelaz@inbox.ru

 

2. KazBelAZ SP TOO

   Kazybek Bi District

   Orlova Street 103

   Karaganda 100004  

   Kazakhstan 

   Telephone: (7 7212) 952 509 / 952 506

   Fax      : (7 7212) 952 513

   E-mail: kazbelaz@mail.ru 

 

3. Avik BelAZ Kariernie Mashiny OOO

   Shunyi District, Shunqiang Rd. 1, standard factory No. 3, 4th 

   (forth) floor

   Beijing

   China

   Telephone: (86 10) 8480 9055 / 8480 8985

   Fax      : (86 10) 8497 3359

 

4. Belaz Trucks Americas (BTA)

   6346 Orchard Lake Road, Suite 103, West Bloomfield,

   Michigan, MI 48322

   USA

   Telephone: (1 248) 539 3482

   Fax      : (1 248) 539 3482

 

5. Western Technologies SP OOO

   Pirogova Street 2

   Minsk 220024

   Belarus  

 

6. Ural-BelAZ SP OOO

   Ural

   Russia 

 

7. Belazia Pte. Ltd

   65 Chulia street №48-02, 049513, OCBC Centre

   Singapore

 

 

ACTIVITIES

 

The Company is involved in the following activities :

 

Manufacturers of mining equipment, mining dump trucks, construction & road-building equipment, vehicles for mine-servicing works, underground vehicles, vehicles for metallurgical works and railway freight cars.

 

NACE Code: 4663

 

Imports from Europe, USA, Russia, Germany, UK, Hungary, India, Sweden.

 

Exports to Russia, Ukraine, Kazakhstan, Armenia, Georgia, Uzbekistan, Azerbaijan, Kyrgyzstan, Moldova, Rumania, Tajikistan, Egypt, Hungary, the Netherlands, Spain, Poland, Portugal, France, Latvia, Lithuania, Finland, Estonia, Iran, China, India, Indonesia, Malaysia, Thailand, Philippines, Chile, Bulgaria, Mongolia, Serbia, Peru and Venezuela.

 

 

FACILITIES

 

The Company has the following facilities :

 

Administrative offices, a manufacturing plant and storage facilities located at the heading address.

 

 

REGISTERED OFFICE

 

40 let Oktyabrya Street 4

Zhodino 222160

 

 

SPECIAL NOTE

 

You enquired on: OJSC Belarusian Autoworks or OJSC Belaz. Please note that the correct name is as per heading.  

 

Interviewed: Tatyana Stepanovna Litvinkovich (Head of Financial Department). 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.42

UK Pound

1

Rs.81.93

Euro

1

Rs.67.67

 

 

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.