MIRA INFORM REPORT

 

 

Report Date :

18.04.2012

 

IDENTIFICATION DETAILS

 

Name :

W.  R.  GRACE  (HONG  KONG)  LTD.

 

 

Registered Office :

Unit 1001-1003, 10/F., AXA Centre, 151 Gloucester Road, Wanchai

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

28.08.1965

 

 

Com. Reg. No.:

01989112

 

 

Legal Form :

Private Limited Company

 

 

Line of Business :

Importer, Exporter, Distributor and Manufacturer’s Representative of Waterproofing/fireproofing concrete products, can closure and sealing compound can coating/can forming fluid, specialty silica products, shrink films/barrier bags/laminates, printing products, hampshire organic, chemical/specialty chemical, water treatment and paper processing products.

 

 

No. of Employees :

Approx. 6,300.  (As at 31-12-2011)

 

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

 

Status :

Good

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)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


Company name and address

 

W.  R.  GRACE  (HONG  KONG)  LTD.

 

 

ADDRESS:       Unit 1001-1003, 10/F., AXA Centre, 151 Gloucester Road, Wanchai, Hong Kong.

 

PHONE:            2590 2828,  2590 2848

 

FAX:                 2856 0703,  2856 0712

 

E-MAIL:            wrgrace_hk@yahoo.com.hk

 

 

MANAGEMENT

 

Managing Director:  Mr. Brian Edward Kenny

 

 

SUMMARY

 

Incorporated on:             28th August, 1965.

 

Organization:                 Private Limited Company.

 

Capital:                         Nominal:           HK$50,000.00

Issued:              HK$50,000.00

 

Business Category:        Chemical Merchant.

 

Group Net Sales:           US$3,211.9 million  (Year ended 31-12-2011)

 

Group Employees:         Approx. 6,300.  (As at 31-12-2011)

 

Main Dealing Banker:     The Hongkong and Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Satisfactory.


ADDRESS

 

Registered Head Office:-

Unit 1001-1003, 10/F., AXA Centre, 151 Gloucester Road, Wanchai, Hong Kong.

 

Branch Office:-

Grace Industrial Building, 6 On Chuen Street, On Lok Tsuen, Fanling, New Territories, Hong Kong.

[Tel: 2675 7898;  Fax: 2675 9193]

 

G.P.O. Box 710, Hong Kong.

 

Holding Company:-

W. R. Grace and Co.-Conn., USA.

 

Ultimate Holding Company:-

W. R. Grace and Co., USA.

 

Affiliated Companies:-

Grace Group of Companies

A.A. Consultancy and Cleaning Co. Ltd., UK.

Alltech Applied Science B.V., Netherlands.

Alltech Applied Science Labs (HK) Ltd., Hong Kong.

Alltech Associates (Australia) Pty. Ltd., Australia.

Alltech Associates Applied Science Ltd., UK.

Alltech Associates Inc., USA.

Alltech France SARL, France.

Alltech Grom GmbH, Germany.

Alltech Italia S.R.L., Italy.

Alltech Scientific (China) Ltd., Hong Kong.

Amicon B.V., Netherlands.

Amicon Ireland Ltd., Ireland.

AP Chem Inc., USA.

Borndear 1 Ltd., UK.

Borndear 2 Ltd., UK.

Borndear 3 Ltd., UK.

Construction Products Dubai Inc., USA.

Cormix Ltd., UK.

Darex CIS LLC, Russia.

Darex Puerto Rico Inc., USA.

Darex UK Ltd., UK.

De Neef (CH) AG, Switzerland.

De Neef Asia Pte. Ltd., Singapore.

De Neef Construction Chemicals (China) Ltd., Hong Kong.

De Neef Construction Chemicals (US) Inc., USA.

De Neef Construction Chemicals N.V., Belgium.

De Neef Deutschland GmbH, Germany.

De Neef France SARL, France.

De Neef Portugal LDA, Portugal.

De Neef Scandanavia AB, Sweden.

De Neef Technologies S.L., Spain.

De Neef UK Ltd., UK.

Denac Nederland B.V., Netherlands.

Dewey and Almy LLC, USA.

Ecarg Inc., USA.

Emerson and Cuming (Trading) Ltd., UK.

Emerson and Cuming (UK) Ltd., UK.

Envases Industriales y Comerciales S.A., Cuba.

Exemere Ltd., UK.

GEC Divestment Corporation Ltd., Canada.

Gloucester New Communities Co. Inc., USA.

Grace (New Zealand) Ltd., New Zealand.

Grace AB, Sweden.

Grace Asia Pacific Inc., USA.

Grace Australia Pty. Ltd., Australia.

Grace Bauprodukte GmbH, Germany.

Grace Brasil Ltda., Brazil.

Grace Canada Inc., Canada.

Grace Catalyst AB, Sweden.

Grace Chemical Co. of Cuba, USA.

Grace Chemicals Inc., USA.

Grace Chemicals K.K., Japan.

Grace China Ltd., China.

Grace Collections Inc., USA.

Grace Colombia S.A., Colombia.

Grace Construction Products (Ireland) Ltd., Ireland.

Grace Construction Products Ltd., UK.

Grace Construction Products N.V., Belgium.

Grace Construction Products S.A., Switzerland.
[Formerly known as Pieri S.A.]

Grace Container S.A. de C.V., Mexico.

Grace Davison (Proprietary) Ltd., South Africa.

Grace Davison Chemicals India Pvt. Ltd., India.
[Formerly known as Flexit Laboratories Private Ltd.]

Grace Davison Ltda., Brazil.

Grace Energy Corporation, USA.

Grace Energy GmbH, Germany.
[Formerly known as Grace Holding GmbH]

Grace Ιrtιkesito Kft., Hungary.

Grace Europe Holding GmbH, Germany.

Grace Europe Inc., USA.

Grace Germany Holdings Inc., USA.

Grace GP GmbH, Germany.

Grace Hellas E.P.E., Greece.

Grace International Holdings Inc., USA.

Grace Japan K.K., Japan.

Grace Korea Inc., Korea.

Grace Latin America Inc., USA.

Grace Luxembourg SARL, Luxembourg.

Grace Management GP GmbH, Germany.

Grace Management Services Inc., USA.

Grace PAR Corporation, USA.

Grace Produits de Construction SAS, France.

Grace Quimica Compania Ltda., Chile.

Grace Receivables Purchasing Inc., USA.

Grace S.A., Belgium.  [Formerly known as Grace N.V.]

Grace S.A., Spain.

Grace Silica GmbH, Germany.

Grace Silica N.V., Belgium.

Grace Sp. z o.o., Poland.

Grace Sweden AB, Sweden.

Grace Trading (Shanghai) Co. Ltd., China.

Grace Venezuela S.A., Venezuela.

Guanica-Caribe Land Development Corporation, USA.

Hanover Square Corporation, USA.

Ichiban Chemical Co. Inc., USA.

Inverco Benelux N.V., Belgium.

Inversiones GSC S.A., Venezuela.

Kootenai Development Company, USA.

LC Service B.V., Netherlands.

P.T. Grace Specialty Chemicals Indonesia, Indonesia.

Papelera Camagueyana S.A., Cuba.

Pieri Especialidades S.L., Spain.

Pieri U.K. Ltd., UK.

Remedium Group Inc., USA.

Servicised Ltd., UK.

Trans-Meridian Insurance (Dublin) Ltd., Ireland.

Union Societe Financiere SA., Switzerland.

Verifi LLC, USA.  [Formerly known as GR 2008 LLC]

W. R. Grace (Malaysia) Sendiran Berhad, Malaysia.

W. R. Grace (Panama) S.A., Panama.

W. R. Grace (Philippines) Inc., Philippines.

W. R. Grace (Singapore) Pte. Ltd., Singapore.

W. R. Grace (Thailand) Ltd., Thailand.

W. R. Grace Africa (Proprietary) Ltd., South Africa.

W. R. Grace and Co. (India) Private Ltd., India.

W. R. Grace B.V., Netherlands.

W. R. Grace Capital Corporation, USA.

W. R. Grace Finance (NRO) Ltd., Canada.

W. R. Grace Holdings S.A. de C.V., Mexico.

W. R. Grace Italiana S.p.A., Italy.

W. R. Grace Land Corporation, USA.

W. R. Grace Ltd., UK.

W. R. Grace N.V., Netherlands Antilles.

W. R. Grace Operations Center, Inc., Philippines.

W. R. Grace S.A., France.

W. R. Grace Specialty Chemicals (Malaysia) Sdn. Bhd., Malaysia.

W. R. Grace Taiwan Inc., Taiwan.

W. R. Grace Vietnam Co. Ltd., Vietnam.

Water Street Corporation, USA.

etc.

 

BUSINESS REGISTRATION NUMBER

 

01989112

 

 

COMPANY FILE NUMBER

 

0011908

 

 

MANAGEMENT

 

Managing Director:  Mr. Brian Edward Kenny

 

 

CAPITAL

 

Nominal Share Capital: HK$50,000.00 (Divided into 500 shares of HK$100.00 each)

 

Issued Share Capital: HK$50,000.00

 

 

SHAREHOLDER

(As per registry dated 28-08-2011)

 

Name

 

No. of shares

W. R. Grace and Co.-Conn.

7500 Grace Drive, Columbia, Maryland, USA.

 

500

===

 

 

DIRECTORS

(As per registry dated 28-08-2011)

 

Name

(Nationality)

 

Address

Brian Edward KENNY

13 Hudson Road East, Irvington, NY 10533, USA.

 

Jeremy Peter Marchant GRAY

Fraser Place, Apartment 615, 115 Unity Street, Singapore 237995.

 

LI Yong

Room 901, No. 35 Long 308, Yu Shan Road, Shanghai, China.

 

SECRETARY

(As per registry dated 28-08-2011)

 

Name

Address

Co. No.

Sekots Secretarial Services Ltd.

16/F.-19/F., Prince’s Building, 10 Chater Road, Central, Hong Kong.

0028739

 

 

HISTORY

 

The subject was incorporated on 28th August, 1965 as a private limited liability company under the Hong Kong Companies Ordinance.

The subject moved to the present address in February 2004.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Importer, Exporter, Distributor and Manufacturer’s Representative.

 

Lines:                           Waterproofing/fireproofing concrete products, can closure and sealing compound can coating/can forming fluid, specialty silica products, shrink films/barrier bags/laminates, printing products, hampshire organic, chemical/specialty chemical, water treatment and paper processing products.

 

Agents for:-

“AMICON” organic solvents – USA.

“EMERSON and CUMING” organic solvents – USA.

 

Group Employees:         Approx. 6,300.  (As at 31-12-2011)

 

Commodities Imported:   Bought from Japan, Australia, France, Germany, Italy, etc.

 

Markets:                       Hong Kong, China, Taiwan and Southeast Asia.

 

Group Net Sales:           US$3,115.2 million  (Year ended 31-12-2007)

US$3,317.0 million  (Year ended 31-12-2008)

US$2,825.0 million  (Year ended 31-12-2009)

US$2,675.0 million  (Year ended 31-12-2010)

US$3,211.9 million  (Year ended 31-12-2011)

 

Terms/Sales:                 Various terms.

 

Terms/Buying:                L/C, T/T, O/A, etc.

 

 

 

FINANCIAL INFORMATION

 

Nominal Share Capital: HK$50,000.00 (Divided into 500 shares of HK$100.00 each)

 

Issued Share Capital: HK$50,000.00

 

Alternation of Capital:-

28-08-1965

paid up

HK$      200.00

28-09-1965

paid up

HK$      49,800.00

 

 

–––––––––––––

Total:

paid up

HK$      50,000.00

============

 

Group Net Income/(Loss) attributable to shareholders:-

US$  88.8 million           (Year ended 31-12-2007)

US$121.5 million            (Year ended 31-12-2008)

US$  71.2 million           (Year ended 31-12-2009)

US$207.1 million            (Year ended 31-12-2010)

US$269.4 million            (Year ended 31-12-2011)

 

Mortgage or Charge:        (See attachment)

 

Profit or Loss:                Business is profitable.

 

Condition:                      Keeping in an active and satisfactory manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Satisfactory.

 

Bankers:-

The Hongkong and Shanghai Banking Corp. Ltd., Hong Kong.

Bank of America N.A., Hong Kong Branch.

Hang Seng Bank Ltd., Hong Kong.

Bank of America, USA/Singapore.

 

Banking:-

Bank source informs a very satisfactory depository relationship has been maintained with them since 1965 and credit facilities extended have been properly utilized.

 

Standing:  Good.

 

 


GENERAL

 

W. R. Grace (Hong Kong) Ltd. is a wholly-owned subsidiary of W. R. Grace and Co. [Grace/Group] which is a US-based firm.

The Group is a multi-national corporation specialized in natural resources, concrete admixtures and cement additives, chemicals.  It is also engaged in retailing consumer products, etc.

Grace is a listed firm with shares trading in New York Exchange Inc.

The subject is the Southeast Asia regional office responsible for distributing industrial chemicals and also providing clients with technical services.

Grace is a premier specialty chemicals and materials company, applying innovative technologies to provide value-added products and services to global markets.  Grace is a leader in catalysts and silica products, construction products and container products.  Its products enhance the performance of their petroleum products, ensure the integrity of some of the world’s major buildings and bridges, increase the quality of images on ink jet paper, improve the appearance of their fine wood furniture and preserve the safety of their foods.  Grace is taking steps to change into a more effective, fully integrated operating company.  It is more focused, value driven and internationally active.  It is well positioned for growth and prosperity, supplying competitive and unique products in dynamic industries.

The subject is carrying the following brand names:-

Brand Name

Brand Product/Service

Grace (Official Agent)

Industrial Chemicals

Darex (Official Agent)

Industrial Chemicals

Davison (Official Agent)

Industrial Chemicals

 

The subject has supplied concrete admixtures and cement additives to construction projects in Hong Kong since 1965, including Central Plaza, Citibank Plaza and The Bank of China Tower, as well as to Hopewell for the construction of the Shenzhen to Guangzhou Superhighway, and two power stations in China.  Grace opened its first Asian office in Hong Kong in 1965 and now has offices in 11 Asian countries and plants in eight.

The subject got ISO 9002:1987 in 1993.  It was the first such company to receive this certification from the Hong Kong Quality Assurance Agency [HKQAA].

In 2007, Grace Davison opened a new facility in Surat, India, focused on manufacturing columns and cartridges for chromatography applications.  Grace acquired certain assets of Grupo Sistiaga S.L., a supplier of coatings for aluminium containers located in Hernani, Spain.  Grace also expanded its R&D capabilities in Europe with the official grand opening of an innovation centre in Poznan, Poland.  The facility develops new technology platforms and products for customers in the construction and packaging industries.  Grace opened a new facility manufacturing cement processing additives and concrete admixtures in the Hoc Mon District of Ho Chi Minh City, Vietnam.

For the year ended 31st December, 2011, the net sales of the Group amounted to US$3,211.9 million, grew by 20.1% as compared with US$2,675.0 million in FY 2010; net income for the year was US$269.4 million, grew by 30.1% as compared with US$207.1 million in FY 2010.

Grace Davison accounted for 69.1% of our 2011 sales.

Grace Construction Products accounted for 30.9% of our 2011 sales.

The Group operates its business on a global scale with approximately 71% of its 2011 sales outside the United States.  It conducts business in over 40 countries and in more than 30 currencies.

On 8th February, 2012, the Group announced that effective for the 2012 first quarter, it is realigning its business into three operating segments: Grace Catalysts Technologies; Grace Materials Technologies; and Grace Construction Products.

Grace Catalysts Technologies: will include catalysts and related technologies used in refining, petrochemical and other chemical manufacturing applications.  Revenues for 2011 for this segment were approximately US$1.4 billion. Grace’s ART joint venture will be managed in this segment.

Grace Materials Technologies: will include engineered materials, coatings and sealants used in industrial, consumer, pharmaceutical and packaging applications.  Revenues for 2011 for this segment were approximately US$800 million.

Grace Construction Products: will include specialty construction chemicals and specialty building materials used in commercial, infrastructure and residential construction.  Revenues for 2011 for this segment were approximately US1.0 billion.

Fred Festa has become Chairman of the Board of Directors since January 2008.

As of 31st December, 2011, the Group had approximately 6,300 persons.

Having about 50 employees in Hong Kong, the subject is fully supported by the Group.

On the whole, consider the subject good for normal business engagements.

 

 

REMARKS

 

            Court case record:-

Date

Plaintiff

Defendant

Cause

Amount

Apr. 1998

KamLloyds Co. Ltd.

W. R. Grace (Hong Kong) Ltd.

Amount due

HK$113,700

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

09-09-2011

Instrument:        Charge Over Deposit, Guarantee and Letter of Set-Off (Third Party)

Property:

All moneys in any currency or currencies as at the date of the Charge or at any time thereafter standing to the credit of the Deposit Accounts.

Mortgagee:        Bank of America, USA/Singapore.

The payment and discharge of all Obligations of Debtors

09-09-2011

Instrument:        Charge Over Deposit and Letter of Set-Off (Own Account)

Property:

Charge all moneys in any currency or currencies as at the date of the Charge or at any time thereafter standing to the credit of the Deposit Accounts with the payment and discharge of all Obligations.

Mortgagee:        Bank of America, USA/Singapore.

To secure all monies in respect of banking facilities owing at any time plus interest and all expenses.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.51.62

UK Pound

1

Rs.81.94

Euro

1

Rs.67.65

 

 

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.