MIRA INFORM REPORT

 

 

Report Date :

29.12.2012

 

IDENTIFICATION DETAILS

 

Name :

NEW ZEALAND STEEL LIMITED

 

 

Registered Office :

131 Mission Bush Road, Glenbrook, South Auckland, 2681

 

 

Country :

New Zealand

 

 

Financials (as on) :

30.06.2012

 

 

Date of Incorporation :

26.07.1965

 

 

Com. Reg. No.:

68953

 

 

Legal Form :

Limited Private Company

 

 

Line of Business :

Manufacturer of steel products.

 

 

No. of Employees :

1,150 full-time staff ; 200 semi-permanent contractors

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

New Zealand

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

NEW ZEALAND - ECONOMIC OVERVIEW

 

Over the past 20 years the government has transformed New Zealand from an agrarian economy dependent on concessionary British market access to a more industrialized, free market economy that can compete globally. This dynamic growth has boosted real incomes - but left behind some at the bottom of the ladder - and broadened and deepened the technological capabilities of the industrial sector. Per capita income rose for ten consecutive years until 2007 in purchasing power parity terms, but fell in 2008-09. Debt-driven consumer spending drove robust growth in the first half of the decade, helping fuel a large balance of payments deficit that posed a challenge for economic managers. Inflationary pressures caused the central bank to raise its key rate steadily from January 2004 until it was among the highest in the OECD in 2007-08; international capital inflows attracted to the high rates further strengthened the currency and housing market, however, aggravating the current account deficit. The economy fell into recession before the start of the global financial crisis and contracted for five consecutive quarters in 2008-09. In line with global peers, the central bank cut interest rates aggressively and the government developed fiscal stimulus measures. The economy posted a 2% decline in 2009, but pulled out of recession late in the year, and achieved 1.7% growth in 2010 and 2% in 2011. Nevertheless, key trade sectors remain vulnerable to weak external demand. The government plans to raise productivity growth and develop infrastructure, while reining in government spending.

Source : CIA

 


IDENTIFICATION DETAILS

 

Verified Address

 

Subject name                : NEW ZEALAND STEEL LIMITED

Business address          : 131 Mission Bush Road

Town                            : Glenbrook

Province                       : South Auckland

Zip/postal code                         : 2681

Country                         : New Zealand

Tel                                : +64 9 3758999

Fax                               : +64 9 3758213

Website                        : www.nzsteel.co.nz

 

Registered address       : 131 Mission Bush Road

Town                            : Glenbrook

Province                       : South Auckland

Zip/postal code                         : 2681

Country                         : New Zealand

Postal address              : Private Bag 92121

Town                            : Auckland Central

Province                       : Auckland

Zip/postal code                         : 1142

Country                         : New Zealand

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered        : 26/07/1965

Legal form                                : Limited Private Company

Chief executive                                     : Simon Andrew Linge

Issued & paid up capital            : NZD 664,715,000

Sales turnover                           : NZD 513,360,000 (Non-consolidated 12 months, 30/06/2007)

Net income                               : NZD 123,479,000 (Non-consolidated 12 months, 30/06/2007)

Total fixed assets                      : NZD 1,931,942,000 (Non-consolidated 12 months, 30/06/2007)

Line of business                        : Manufacturer of steel products.

Staff employed                                     : 1,150 full-time staff ; 200 semi-permanent contractors (Subject); 17,000

employees (Bluescope Group)

 

 

CREDIT RISK OPINION

 

Company Analysis

 

Country risk                               : Country risk is minimal

Operation trend                         : Operational trend is progressing

Management experience            : Management is adequately experienced

Financial performance               : Financial performance is very good

Organization structure                : Organizational structure is consistent

Detrimental                               : No detrimental found

Payment history                        : No payment delays noted

 

 

STATUTORY DETAILS

 

Registry Data

Registration date           : 26/07/1965

Legal form                    : Limited Private Company

Registration no              : 68953

Registered authority      : New Zealand Companies Office

Registry status              : Live/Active

Previous name              : BHP NEW ZEALAND STEEL LIMITED (until 01-05-2002)

  NEW ZEALAND STEEL LIMITED (01-09-1992)

Change of legal form     : None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name                            : Simon Andrew Linge

Designation                 : President

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

Appointments

 

Name                            : Ronald John Gillespie

Designation                  : Director

Appointment date          : 22/02/11

Address                        : 188 McNicol Road, Rd 5

  Papakura 2585

  New Zealand

 

Name                            : David James Hazlehurst

Designation                  : Director

Appointment date          : 01/09/11

Address                        : 154 Hooker Road, Rd 3

  Hamilton 3283

  New Zealand

 

Name                            : Simon Andrew Linge

Designation                  : Director

Appointment date          : 30/03/11

Address                        : 72 Long Drive

  Saint Heliers, Auckland 1071

  New Zealand

 

Name                            : Mark Royce Vassella

Designation                  : Director

Appointment date          : 01/07/11

Address                        : 14 Yuille Street

  Brighton, VIC 3186

  Australia

Biography                     : Mr. Mark R. Vassella has been Chief Executive - ANZ of BlueScope Steel Limited since July 1, 2011. Previously, Mr. Vassella headed BlueScope's North American businesses, and prior to that, he was Chief Executive of Australian Distribution and Solutions following BlueScope's acquisition of Smorgon Steel Distribution in 2007. He leads a business comprising all operations in Australia and New Zealand and which was recently restructured to deliver an improved sales and marketing effort, and better integrated customer service.

Staff employed : 1,150 full-time staff ; 200 semi-permanent contractors (Subject); 17,000 employees (Bluescope Group)

 

 

SHARE CAPITAL

 

Composition

Authorized Capital : NZD 664,715,000

No of shares : 942,298,106 Shares

Share par value : No par value

Issued capital : NZD 664,715,000

Paid up capital : NZD 664,715,000

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed                     : Full List

 

Composition

Shareholder name         : NEW ZEALAND STEEL HOLDINGS LIMITED

Address                        : 131 Mission Bush Road

Glenbrook, South Auckland 2681

New Zealand

No. of shares                : 942,298,106 Shares

% of shares                  : 100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name                            : BLUESCOPE STEEL LIMITED

Affiliation type              : Ultimate Holding Company

Address                       : Level 11, 120 Collins Street

Melbourne, VIC 3000

Australia

Comments                    : BlueScope Steel Limited manufactures and distributes a range steel products for

residential, industrial, building, and manufacturing industries worldwide. The company offers slab, plate, hot and cold rolled coils, coated and painted sheets, and coil products, as well as processes sourced iron sand and coal into slabs. It also provides customized building solutions, including pre-engineering metal building systems, steel cladding, decking and residential solutions, and architectural building systems; and value engineering, design, manufacturing, project management, transportation, on site consultation, construction service, and local support solutions. In addition, the company offers lightweight steel roof trusses, roof frame systems, large span pre-engineered steel buildings, and other accessories; manufactures, supplies, and installs steel and non-steel roofing and wall cladding, as well as galvanized purlins; and provides structural products and profiles for roofing. Further, it provides prepainted and zinc/aluminum alloy-coated steels for use in roll-forming, pressing, and general applications; manufactures and supplies coated steel building products; and offers services, including toll painting of wide coil in coated steel, aluminum, cold rolled annealed, or similar metal products, as well as toll pickling and oiling for automotive steels.

Additionally, the company offers a range of metal building solutions, and steel building components and solutions; rainwater goods, fasteners, and water tanks; flashing, ridging, and guttering, as well as insulation, screws, tools, ventilators, translucent, and polycarbonate sheetings. BlueScope Steel offers its products primarily under the XLERPLATE, LYSAGHT, COLORBOND, Clean COLORBOND, and ZINCALUME brands. The company was formerly known as BHP Steel Limited and changed its name to BlueScope Steel Limited in November 2003. BlueScope Steel Limited was founded in 1885 and is headquartered in Melbourne, Australia.

 

Name                            : GLENBROOK HOLDINGS PTY. LTD.

Affiliation type              : Superior Holding Company

Address                        : Level 11, 120 Collins Street

Melbourne, VIC 3000

Australia

 

Name                            : TASMAN STEEL HOLDINGS LIMITED

Affiliation type              : Intermediate Holding Company

Address                        : 131 Mission Bush Road

Glenbrook, South Auckland 2681

New Zealand

 

Name                            : NEW ZEALAND STEEL HOLDINGS LIMITED

Affiliation type              : Parent Company

Address                        : 131 Mission Bush Road

Glenbrook, South Auckland 2681

New Zealand

 

Name                            : BLUESCOPE PTY LTD

Affiliation type              : Sister Company

Address                        : Level 11, 120 Collins Street

Melbourne, VIC 3000

Australia

 

Related companies and corporate affiliations comments             : Other companies of the BlueScope Group should be considered affiliates of the Subject.

 

 

BANK & MORTGAGES

 

Bank Details

Name of bank               : ANZ Bank New Zealand Limited

Address                        : New Zealand

Account details                         : Current Account

Comments                    : It is generally not the policy of local banks to provide credit status information to non related parties, however interested parties would be advised to consult first with the Subject if banker's references are required.

Mortgages                    : None reported.

 

Legal Fillings

 

Bankruptcy fillings         : None reported.

Court judgements          : None reported.

Tax liens                       : None reported.

Others                          : None reported.

 

 

FINANCIAL DATA

 

Description

 

Source of financial statement     : Commercial Registry Filings

Financial statement date            : 30/06/07

Type of accounts                      : Full audited

Currency                                   : New Zealand, Dollar (NZD)

Exchange rate                           : 1 USD = NZD 1.22 as of 28-12-2012

 

Summarized Financial Information

 

Consolidation type                    : Non Consolidated Non Consolidated Group Consolidated

Currency                                   : New Zealand, Dollar

(NZD) New Zealand,

Dollar (NZD)

Australia Dollar (AUD)

Denomination                            : (x1) One          (x1) One            (x1) One

Date of financial year end          : 30/06/07          30/06/06            30/06/12

Length of accounts                   : 12 months       12 months         12 months

Sale turnover / Income               : 513,360,000    448,919,000      8,585,700,000

Profit before tax                        : 123,479,000    76,295,000        -976,100,000

Net income                              : 123,479,000    76,295,000        -1,027,900,000

Non current assets                    : 514,328,000    484,516,000      4,166,400,000

Current assets                           : 1,417,614,000 1,275,144,000    2,567,100,000

Inventories                                : 16,991,000      29,515,000        1,337,400,000

Total assets                             : 1,931,942,000 1,759,660,000    6,733,500,000

Current liabilities                        : 774,640,000    726,256,000      1,802,200,000

Non current liabilities                 : 8,855,000        8,436,000          1,152,500,000

Total liabilities                           : 783,495,000    734,692,000      2,954,700,000

Share equity                              : 1,148,447,000 1,024,968,000    3,778,800,000

Comments                                : The non-consolidated financial information above relates to the Subject only. The Subject’s latest financial information is not available with the New Zealand Companies Office.

The group’s consolidated financial information above relates to the Subject’s Ultimate Holding Company Bluescope Steel Limited and all its subsidiaries which include the Subject.

 

 

OPERATION DETAILS

 

Main activities                           : The Subject is engaged as a manufacturer of flat steel products for both

domestic and export markets.

There are two operational facets to the Subject - steelmaking and mining.

Situated at Glenbrook, south of Auckland, the Subject produces a range of flat steel products for both domestic and export markets. Slabs are rolled into hot and cold rolled products, which are then on-sold or further processed into products like hollow sections, galvanised steel, ZINCALUME® steel and COLORSTEEL® steel.

The mines supply ironsand to its steel mill at Glenbrook and to customers in North Asia. The ironsand comes from the Waikato North Head mine site and concentration plant, situated 18 kilometres south of New Zealand Steel’s Glenbrook mill. The Taharoa mine site covers an area of 1,300 hectares, segmented into three regions. Sand is extracted from a pond by a floating dredge, and then conveyed to an adjacent floating concentration plant for processing.

The Subject is a wholly owned subsidiary of BlueScope Steel Limited.

Product & services                    : Products

COLORSTEEL®

Prepainted steel for roofing, fascia, cladding, guttering and fencing.

ZINCALUME®

Zinc/aluminium alloy coated steel for building and manufacturing applications.

 

GALVSTEEL™

GALVSTEEL™ steel is a hot-dipped, zinc-coated steel for applications across the building, agricultural and automotive sectors. Its mechanical properties make it suitable for forming, welding, fastening and painting.

 

Hot Rolled Steel

Hot rolled steel is produced in a variety of grades for high strength, structural applications, including flooring, steel beams, tanks, flanges and welded pipes.

 

Cold Rolled Steel

Cold rolled steel each with a variety of properties to suit applications ranging from shelving to the manufacture of steel drums, saw blades, hinges, automotive parts and steel tube.

Pipe & Hollow Sections

Pipe and hollow sections are used in a large number of applications, as key components of agricultural equipment through to bridges and railings.

 

AXXIS® Steel for Framing

AXXIS® Steel for Framing is a brand of galvanised, high-tensile steel supplied to New Zealand's house framing market.

 

Steltech®

Beams for optimised steel structures. Used for designers and owners to create visually interesting buildings that use efficient design to provide cost effective space.

 

Brand                                       : COLORSTEEL®

ZINCALUME®

GALVSTEEL™

AXXIS®

STELTECH®

 

Purchases

 

International                              : Worldwide

 

Sales

 

Local                                        : Yes

International                              : Worldwide

 

 

Property & Assets

 

Premises                                  : The Subject operates from premises located at the verified heading address consisting of a production facilities, warehouse and administrative office.

Branches                                  : In addition, the Subject operates from the Waikato North Head Mine Site and Taharoa Mine Site.

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                          : Reserve Bank of New Zealand

Reserve of foreign exchange & gold      : US$ 20.562 billion

Gross domestic product - GDP              : US$ 180.548 billion

GPP (Purchasing power parity)              : 126.628 billion of International dollars

GDP per capita - current prices              : US$ 40,454

GDP - composition by sector                : agriculture: 4.7%

industry: 24%

services: 71.3%

Inflation                                                : 2009: 2.1%

2010: 2.3%

2011: 4%

Unemployment rate                               : 2009: 6.1%

2010: 6.5%

2011: 6.5%

Public debt

(General Government gross debt as

a % GDP)                                             : 2009: 26.1%

2010: 32.3%

2011: 37%

Government bond ratings                      : Standard & Poor's: AA+/Stable/A-1+

Moody's rating: Aaa

Moody's outlook: STA

Market value of publicly traded

Shares                                                  : US$67.061 billion

Largest companies in the country           : Westpac Limited, Transpower, Fletcher Building Limited, National Bank of New Zealand, Fonterra Co-Operative Group Ltd, Air New Zealand Limited, The Warehouse Group Limited, Progressive Enterprises Ltd

 

Trade & Competitiveness Overview

 

Total exports                                         : US$33.24 billion

Exports commodities                            : Dairy products, meat, wood and wood products, fish, machinery

Total imports                                         : US$31.11 billion

Imports commodities                             : Machinery and equipment, vehicles and aircraft, petroleum, electronics,

textiles, plastics

Export - major partners                          : Australia 22%, US 11.5%, Japan 9.2%, China 5.3%, UK 4.6%

Import - major partners                          : Australia 20.7%, China 13.4%, US 9.7%, Japan 9.5%, Singapore 4.9%,

Germany 4.7%

FDI Inflows                                           : 2008: US$4,598 million

2009: US$-1,293 million

2010: US$561 million

FDI Outflows                                         : 2008: US$462 million

2009: US$-308 million

2010: US$589 million

Best countries for doing business          : 3 out of 183 countries

Global competitiveness ranking              : 25 (ranking by country on a basis of 142, the first is the best)

 

Country and Population Overview

 

Total population                                    : 4.37 million

Total area                                              : 270,467 km2

Capital                                                  : Wellington

Currency                                               : New Zealand dollars (NZD)

Internet users as % of total

Population                                            : 83%

 

 

 

PAYMENT HISTORY

 

Purchase Term

International                             : L/C, Telegraphic transfer, D/P, Credit 30-120 days

 

Sales Term

 

Local                                        : Prepayment, Bank transfer, D/P, Credit 30-120 days

International                              : L/C, Telegraphic transfer, D/P, Credit 30-120 days

 

Trade Reference/ Payment

Behaviour

 

Comments                                : As local and international trade references were not supplied, the Subject's

payment track record history cannot be appropriately determined but based on our research, payments are believed to be met without delay.

 

Investigation Note

 

Sources                                    : Interviews and material provided by the Subject

: Other official and local business sources


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.85

UK Pound

1

Rs.88.40

Euro

1

Rs.72.63

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.