MIRA INFORM REPORT

 

 

Report Date :

15.02.2012

 

IDENTIFICATION DETAILS

 

Name :

SYNTHOMER SDN. BHD.

 

 

Registered Office :

C/o SYMPHONY CORPORATEHOUSE SDN. BHD.

8th Floor, Symphony House, Jln PJU 1A/46, Pusat Dagangan Dana 1, Petaling Jaya, Selangor Darul Ehsan, 47301

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

17.04.2000

 

 

Com. Reg. No.:

510369-K

 

 

Legal Form :

Private Company Limited By Shares

 

 

Line of Business :

Manufacturing and trading of synthetic latex and related products

 

 

No. of Employees :

Not Available

 

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 :

USD 4,500,000

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 – September 30, 2011

 

Country Name

Previous Rating

(30.06.2011)

Current Rating

(30.09.2011)

Malaysia

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


IDENTIFICATION DETAILS

 

Verified Address

 

Subject name                :   SYNTHOMER SDN. BHD.

Business address          :   Bangunan Revertex

1 1/2 Miles, Jalan Batu Pahat

Town                             :   Kluang

Province                        :   Johor Darul Takzim

Zip/postal code              :   86000

Country                         :   Malaysia

Tel                                :   +60 7 7731000

Fax                               :   +60 7 7717208

Email                            :   info@synthomer.com

Website                                    :   www.synthomer.com

 

 

Registered address        :   C/o SYMPHONY CORPORATEHOUSE SDN. BHD.

8th Floor, Symphony House

Jln PJU 1A/46

Pusat Dagangan Dana 1

 

Town                             :   Petaling Jaya

Province                        :   Selangor Darul Ehsan

Zip/postal code              :   47301

Country                         :   Malaysia

Postal address              :   KB508

Town                                                               :   Kluang

Province                        :   Johor Darul Takzim

Zip/postal code              :   86009

Country                                                           :   Malaysia

 

 

SUMMARY DETAILS

 

Executive Summary

 

Date founded or registered          :   07/04/2000

Legal form                                 :   Private Company Limited By Shares

Chief executive                          :   Brendan Catlow

Issued & paid up capital             :   MYR 40,000,000

Sales turnover                            :   MYR 458,991,000 (Non-consolidated 12 months, 31/12/2010)

Net income                                :   MYR 47,635,000 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets                       :   MYR 315,549,000 (Non-consolidated 12 months, 31/12/2010)

Line of business             :   Manufacturing and trading of synthetic latex and related products.

Staff employed                                                                        :   115 employees (Subject); 1,870 employees (Yule Catto Group)

 

 

 

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 good

Organization structure                :   Organizational structure is stable

Detrimental                    :   No detrimental records found

Payment history                                    :   No payment delays noted

Credit amount suggestion     :   USD 4,500,000

Credit amount asked                  :   Not described.

Comments                                :   Larger credit can still be considered. The Subject is well positioned in the market and the financial stability of the group is positive.

 

 

STATUTORY DETAILS

 

Registry Data

Registration date            :   07/04/2000

Legal form                     :   Private Company Limited By Shares

Registration no              510369-K

Registered authority       :   Companies Commission of Malaysia

Registry status              :   Live/Active

Previous name               :   None reported.

Change of legal form       :   None reported.

 

 

MANAGEMENT / DIRECTORS

 

Key Management

 

Name                :           Brendan Catlow

Designation       :           Managing Director

 

Name                :           Jai Kumar A/l Rajagopal

Designation       :           Financial Director

 

Name                :           Hartwig Droegemueller

Designation       :           Operations Manager

 


 

BOARD OF DIRECTORS/ OTHER APPOINTMENTS

 

Appointments

 

Name                            :           Jai Kumar A/l Rajagopal

Designation                   :           Director and Company Secretary

Identification no              :           530102-10-5953

Appointment date           :           14/05/04

Address                        :           No. 6, Jalan Suka

86000 Kluang

Johor Darul Takzim

Malaysia

 

Name                            :           Minhat Bin Wahid

Designation                   :           Director

Identification no              :           590426-04-5015

Appointment date           :           17/03/09

Address                        :           No. 72, Jalan TTS 5

Taman Tasik Semenyih

43500 Semenyih Selangor Darul Ehsan

Malaysia

 

Name                            :           Derick Blair Whyte

Designation                   :           Director

Identification no              :           761114849

Appointment date           :           21/08/08

Address                        :           Hill House, Brent Hall Road Finchingfield, Braintree Essex, CM7 4JZ

United Kingdom

 

Name                            :           Brendan Catlow

Designation                   :           Director

Identification no              :           761250486

Appointment date           :           01/03/07

Address                                  :                       E1, Bungalow

Mengkibol Estate

P.O. Box 507

86000 Kluang Johor Darul Ehsan

Malaysia

 

Staff employed               :           115 employees (Subject); 1,870 employees (Yule Catto Group)

 

Key Advisors

 

Auditors            :           DELOITTE & TOUCHE Level 19, Uptown 1

Damansara Uptown

1, Jalan SS21/58

Petaling Jaya 47400

Selangor Darul Ehsan

Malaysia

SHARE CAPITAL

 

Composition

 

Authorized Capital          :   MYR 150,000,000

 

No of shares                  :   1,000 Non Cumulative Redeemable Preference Shares / 50,000,000 Ordinary

Shares

 

Share par value              :   MYR 100,000 for Non Cumulative Redeemable Preference Share / MYR 1 for

Ordinary Share

 

Issued capital                :   MYR 40,000,000

 

Paid up capital               :   MYR 40,000,000

 

Changed in capital         :   The Subject increased its share capital from MYR 100,000,000 to MYR

150,000,000 on 03-06-2002.

 

 

OWNERSHIP / SHAREHOLDERS

 

How listed                     :   Full List

 

Composition

Shareholder name          :   YULE CATTO NEDERLAND B.V.

Address                        :   Veemweg 29-31

3771MT Barneveld

Netherlands

 

No. of shares                 :   40,000,000 Ordinary Shares

 

% of shares                            :   100%

 

 

RELATED COMPANIES & CORPORATE AFFILIATIONS

 

Structure

 

Name                :   YULE CATTO & CO PLC

Affiliation type    :   Ultimate Holding Company

Address            :   Temple Fields

Central Road

Harlow, Essex CM20 2BH

United Kingdom

Comments        :   Yule Catto & Co PLC, together with its subsidiaries, produces specialty chemicals. It offers vinyl dispersions, emulsions, synthetic latices, adhesives, styrene butadiene latex, natural rubber latex, nitrile butadiene latex, acrylic and styrene acrylic dispersions, liquid polybutadiene, polyvinyl alcohol, polyvinyl acetate, and alkyd and polyester resins to the surface coatings, construction, adhesives, glove dipping, carpets and non-woven, textile, and paper industries. The company is based in Harlow, the United Kingdom.

 

Name                :   YULE CATTO NEDERLAND B.V.

Affiliation type    :   Parent Company

Address            :   Veemweg 29-31

3771MT Barneveld

Netherlands

 

Comments        :   Investment holding company.

 

Name                :   REVERTEX (MALAYSIA) SDN BHD

Affiliation type    :   Sister Company

Address            :   Bangunan Revertex

1 1/2 Miles, Jalan Batu Pahat

Kluang 86000

Johor Darul Takzim

Malaysia

 

Comments        :   Production of synthetic resin and emulsions, natural rubber latices, plasticers and allied products.

 

Name                :   SYNTHOMER B.V.

Affiliation type    :   Sister Company

Address            :   IJsselstraat 41

5347KG Oss

Netherlands

 

Comments        :   Production of compounds of synthetic rubber latices.

 

Name                :   SYNTHOMER GMBH

Affiliation type    :   Sister Company

Address            :   Innerstetal 2

D-38685 Langelsheim

Germany

 

Comments        :   Production of synthetic rubber latices and related compounds.

 

Name                :   SYNTHOMER LIMITED

Affiliation type    :   Sister Company

Address            :   Temple Fields

Central Road

Harlow, Essex CM20 2BH United Kingdom

 

Comments        :   Production of synthetic rubber latices and emulsions.

 

 

Name                :   UQUIFA MEXICO S.A. DE C.V.

Affiliation type    :   Sister Company

Address            :   Calle 37 Este No. 126 - C.P.

Civac, Jiutepec-Morelos

CP 62578

Mexico

 

Comments        :   Production of pharmaceutical actives and intermediates.

 

Name                :   SYNTHOMER VIETNAM CO., LTD.

Affiliation type    :   Sister Company

Address            :   No. 8, Road 6

Song Than 1 Industrial Zone Di An

Binh Duong Province

Vietnam

 

Comments        :   Production of synthetic adhesives.

 

Name                :   SYNTHOMER SA

Affiliation type    :   Sister Company

Address            :   Boulevard du Textile 1

B-7700 Mouscron

Belgium

 

Comments        :   Production of compounds, dispersions and adhesives.

 

Name                :   SYNTHOMER SAE

Affiliation type    :   Sister Company

Address            :   Industrial Zone 1-B

10th of Ramadan City

Sharkiya

Egypt

 

Comments      :   Production of compounds of synthetic and natural rubber latices.

 

Related companies and corporate affiliations comments

:   Other companies of the Yule Catto Group should be considered affiliates of the

Subject.

 


 

BANK & MORTGAGES

 

Bank Details

 

Name of bank    :   Malayan Banking Berhad

Address            :   Malaysia

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     :   Total of Charge: 30,000,000.00

Date of Creation: 20-01-2009

Name of Chargee: MALAYAN BANKING BERHAD

Charge Status: UNSATISFIED

 

Total of Charge: 70,000,000.00

Date of Creation: 20-01-2009

Name of Chargee: MALAYAN BANKING BERHAD

Charge Status: UNSATISFIED

 

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            :   31/12/10

Type of accounts                       :   Full audited

Currency                                   :   Malaysia, Ringgit (MYR)

Exchange rate                           :   1 USD = MYR 3.03 as of 13-02-2012

 

Summarized Financial Information

Consolidation type                  :   Non Consolidated        Non Consolidated           Group Consolidated

Currency                                 :   Malaysia, Ringgit (MYR)           Malaysia, Ringgit (MYR)             United Kingdom, Pound

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

Date of financial year end:   31/12/10                                    31/12/09                                    31/12/10

Length of accounts         :   12 months                                                                       12 months                                                       12 months

 

 

Sale turnover / Income    :

458,991,000

313,238,000

632,454,000

Gross profit       :

76,142,000

61,327,000

 

Operating profit  :

51,756,000

39,722,000

63,006,000

Profit before tax :

47,540,000

36,741,000

57,811,000

Net income        :

47,635,000

36,656,000

55,274,000

Non current assets         :

139,677,000

152,758,000

230,835,000

Current assets   :

175,872,000

153,770,000

235,640,000

Inventories         :

28,773,000

28,714,000

65,379,000

Total assets      :

315,549,000

306,528,000

466,475,000

Current liabilities            :

90,628,000

74,090,000

178,718,000

Non current liabilities      :

70,892,000

87,044,000

175,192,000

Total liabilities    :

161,520,000

161,134,000

353,910,000

Share equity      :

154,029,000

145,394,000

112,565,000

 

Comments        :   The non-consolidated financial information above relates to the Subject only.

 

The group’s consolidated financial information above relates to the Subject’s Ultimate Holding Company Yule Catto & Co PLC and all its subsidiaries which include the Subject.

 

 

OPERATION DETAILS

 

Main activities    :   The Subject engaged in manufacturing and trading of synthetic latex and related products.

 

The Subject operates from manufacturing facility located at Kluang, Johor which covers about 25ha.

 

It has 4 polymerisation plants producing nitrile latex; acrylic and vinyl acetate dispersions; alkyd and unsaturated polyester resins. The facility can also produce natural rubber latex concentrates and compounds.

 

Kluang is also home to Synthomer applications and R&D centre supporting its Asian dispersions, resins and natural rubber latex businesses and our worldwide glove dipping latex business.

 

The Subject is ultimately owned by YULE CATTO & CO PLC, incorporated in United Kingdom and public listed in London Stock Exchange.

 

The Company was founded by Andrew Yule in 1863 in Calcutta as a trading house known as Andrew Yule & Co. Thomas Catto became managing partner early in his career and Yule Catto was formed as its British purchasing arm. Thomas Catto's son, Stephen turned it into an international chemical manufacturing business.

 

Yule Catto & Co plc is a chemicals company. It operates in two segments: Polymer Chemicals and Impact Chemicals. The products of Polymer Division are emulsion polymers, formulated around vinyl acetate and acrylic dispersions, styrene and nitrile butadiene rubber, as well as

polyvinyl alcohol/acetate. Impact Chemicals include the business of William Blythe Ltd. (William Blythe), which is a supplier of inorganic specialities based on copper, iodine and tin from it’s the United Kingdom

manufacturing facility. On June 2, 2010, its joint venture subsidiary, Revertex (Finewaters) Sdn Bhd was sold to H B Fuller Company. In March

2011, it acquired PolymerLatex Deutschland Beteiligungsgesellschaft mbH. In October 2011, the Company acquired Quality Polymer Sdn Bhd. In December 2011, the Company announced the sale of its non-core Pharma Chemicals division, Uquifa, to Vivimed Labs.

 

Product & services         :   Synthetic nitrile latex

Natural Rubber Latex Compounds

Latex Compounds

 

Purchases

 

International       :   Singapore, United States, Japan, Taiwan

 

Sales

 

Local                :   Yes

 

International       :   East Asia

 

Key events       :   12 December 2011

 

Synthomer Announces Major Expansion of Nitrile Latex Plant in Pasir

Gudang, Johor

 

Demand for synthetic nitrile gloves in Malaysia drives 110 Million Ringgit

Expansion, creating largest plant in the world

 

KUALA LUMPUR, 9th December 2011 - SYNTHOMER, the world’s leading provider of synthetic nitrile latex for the glove industry, has announced a further 110 million Ringgit investment to expand its Pasir Gudang nitrile latex facilities in Malaysia, creating the largest plant in the world dedicated to the production of nitrile latex for the glove dipping industry.

 

Synthomer’s Pasir Gudang factory located in Johor (Malaysia), has recently been acquired as a result of the takeover of PolymerLatex GmbH by Synthomer’s parent company Yule Catto & Co plc, and was originally commissioned in October 2009. Ever since the acquisition, Synthomer has positioned its PasirGudang plant as a hub into and around Asia, enabling the entire region to tap into a single pool of resources that has brought Synthomer closer to all their customers.

 

An estimated of RM250 million was already invested in this state of the art plant. Equipped with the latest global scale technology, Synthomer has confirmed an initial output capacity of up to 100,000 wet tonnes per year that has been achieved to meet both global and local demands.

 

Expanding to ensure continuous quality and commitment in Malaysia

 

The latest expansion to the Pasir Gudang plant is driven by Synthomer’s need to satisfy the increasing demands of its customers in order to meet the worldwide growth of nitrile latex used in the manufacture of medical examination and industrial gloves.

 

Construction has already started for the two phase expansion which will increase site capacity in Pasir Gudang by over 60%, with the first phase starting production in the third quarter of 2012 and followed rapidly by the second phase.

 

“This expansion will continue to strengthen Synthomer’s presence in the rapidly growing market for synthetic nitrile gloves. We want our customers to be confident that Synthomer will be able to support their developments with high quality and technically advanced products,” said Dr Brendan Catlow, Managing Director, Synthomer Asia.

 

Earlier this year, Synthomer successfully completed a 5th phase of expansion at its Kluang facility in Johor. The combined capacity of the Kluang and Pasir Gudang plants in 2013 will be 300,000 wet tonnes / year.

 

9 December 2011

 

Synthomer to spend RM110m on Johor plant

 

KUALA LUMPUR: Synthomer, synthetic nitrile latex producer for the glove

 

industry, will invest RM110 million to expand its Pasir

Gudang nitrile latex plant.

 

The expansion would transform the plant to be the world's largest dedicated to nitrile latex production for the glove-dipping industry, said Synthomer.

 

"The latest expansion to the Pasir Gudang plant is driven by Synthomer’s need to satisfy its customers increasing demand to meet nitrile latex worldwide growth in medical examination and industrial gloves manufacture," it said in a statement today.

 

An estimated RM250 million has already been invested in this

state-of-the-art plant. Equipped with the latest global scale technology, Synthomer has confirmed an initial output capacity of up to 100,000WT (weight tonne) per year, which has been achieved to meet both global and local demands.

 

It said construction work has already started for the two-phase expansion, which will increase the site capacity by over 60 per cent, with the first phase starting production in the third quarter of next year and followed quickly by the second phase.

 

Earlier this year, Synthomer completed the fifth phase expansion of its plant in Kluang. The combined capacity of the Pasir Gudang and Kluang plants will be 300,000WT a year in 2013.

 

Synthomer’s Pasir Gudang plant was recently acquired following the takeover of Polymer Latex GmbH by Synthomer’s parent company, Yule Catto & Co plc.

 

It was commissioned in October 2009.- Bernama

 

Property & Assets

 

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

 

Branches          :   In addition, the Subject operates from another production facilities and sales office located at:

 

Production facilities

C/o Idemitsu Chemicals (M) Sdn. Bhd. Plo 408, Jalan Pekeliling

81700 Pasir Gudang Johor Darul Takzim Malaysia

Tel: +60 7 2547133

 

Office

Unit 6-6, Level 6, Wisma UOA Damansara II No. 6 Changkat Semantan

 

Damansara Heights

50490 Kuala Lumpur

Malaysia

Tel: +60 3 20807200

 

Other property   :   Total NBV of property, plant and equipment as of 31-12-2010 was MYR

139,677,000.

 

 

SUMMARIZED COUNTRY RISK

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                          :   Central Bank of Malaysia

 

Reserve of foreign exchange & gold         :   US$ 133.7 billion as of 13 January 2012

 

Gross domestic product - GDP               :   US$ 247.781 billion

 

GPP (Purchasing power parity)               :   US$ 442.01 billion of International dollars

 

GDP per capita - current prices               :   US$ 8,624

 

GDP - composition by sector                  :   agriculture: 9.4%

industry: 40.9%

services: 49.7%

 

Inflation:                                                2008: 5.4%

2009: 0.6%

2010: 1.7%

 

Unemployment rate                                2008: 3.3%

2009: 3.6%

 

Public debt

(General Government gross debt as a % GDP)

:   2008: 42.8%

2009: 55.4%

2010: 54.2%

 

 

Government bond ratings :          Standard & Poor's: A-/Stable/A-2

Moody's rating: A3

Moody's outlook: STA

 

Market value of publicly traded shares      :   US$420 billion

 

Largest companies in the country            CIMB Group Holdings (Banking), Sime Darby (Conglomerates), Public Bank Berhad (Banking), Maybank (Banking), Tenaga Nasional Berhad(Utilities), Petronas Chemicals, Maxis Berhad

 

 

Trade & Competitiveness Overview

 

Total exports                             :   US$210.3 billion

 

Exports commodities                 :   electronic equipment, petroleum and liquefied natural gas, wood and wood products, palm oil, rubber, textiles, chemicals

 

Total imports                             :   US$156.2 billion

 

Imports commodities                  :   electronics, machinery, petroleum products, plastics, vehicles, iron and steel products, chemicals

 

Export - major partners               :   US 15.6%, Singapore 14.6%, Japan 9.1%, China 8.8%, Thailand 5%, Hong

Kong 4.6%

 

Import - major partners               :   Japan 13%, China 12.9%, Singapore 11.5%, US 10.8%, Taiwan 5.7%, Thailand 5.3%, South Korea 4.9%, Germany 4.6%, Indonesia 4.2%

 

FDI Inflows                                :   2007: US$8,538 million

2008: US$7,318 million

2009: US$1,381 million

 

FDI Outflows                              :   2007: US$11,280 million

2008: US$14,988 million

2009: US$8,038 million

 

Best countries for doing business:   21 out of 183 countries

 

Global competitiveness ranking   :   26 (ranking by country on a basis of 133, the first is the best)

 


 

Country and Population Overview

 

Total population                                     :   28.23 million

Total area                                              :   329,847 km2

Capital                                                  :   Kuala Lumpur

Currency                                                                                 :   Malaysia Ringgits (MYR)

Internet users as % of total population     :   57.61%

 

 

PAYMENT HISTORY

 

Purchase Term

 

Local                            :   Prepayment, Document against payment, Credit 30-120 days

 

International                   :   Credit 30-120 days

 

Sales Term

 

Local                            :   Prepayment, Document against payment, Credit 30-60 days

 

International                   :   L/C, Credit 30-60 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.49.33

UK Pound

1

Rs.77.41

Euro

1

Rs.64.83

 

 

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.