MIRA INFORM REPORT

 

 

Report Date :           

21.02.2012

 

IDENTIFICATION DETAILS

 

Name :

POSCO CHEMTECH CO., LTD.

 

 

Formerly Known As :

POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(POSREC)

 

 

Registered Office :

1-143, Cheongnim-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea, Zip Code 790-836

 

 

Country :

South Korea

 

 

Financials (as on) :

30.09.2011

 

 

Date of Incorporation :

13.05.1971

 

 

Com. Reg. No.:

506-81-01452

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Refractory Ceramic Products

 

 

No. of Employees :

1301

 

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 – September 30th, 2011

 

Country Name

Previous Rating

                   (30.06.2011)                  

Current Rating

(30.09.2011)

South Korea

a1

a1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

Basic

 

Company Name

POSCO CHEMTECH CO., LTD.

((Ex. Company Name : POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(POSREC, “()포스렉”))

(Korean Company Name : “()포스코켐텍”)

Registered Address

1-143, Cheongnim-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Zip Code

790-836

Tel

+82-54-290-0114

Fax

+82-54-292-3417

E-mail

posrecweb@posrec.co.kr;think99@posrec.co.kr

Website

www.posrec.co.kr

Trading Address

1-143, Cheongnim-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-290-0114

Fax

+82-54-292-3417

Other Address-Gwangyang Office

1657-2, Taein-dong, Gwangyang-si, Jeollanam-do, Korea

Tel

+82-61-792-0610~1

Fax

+82-61-792-8560

Type

Export

Industry

Manufacture of Other Refractory Ceramic Products

  Main Business

Shaped Refractory, Unshaped Refractory, Clinkers

  Sub Business

Construction of Industrial Plants

Established (mm/dd/yyyy)

05/13/1971

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Refractory bricks(31371100)

Sell

Refractories(31370000)

 

 

CEO’s

 

Name

Kim Jin-Il

Date of Birth

02/01/1953

Title

President & CEO

Sex

Male

Nationality

Korean

 


Profiles

 

Capital (KRW)

29,535,000,000

Employees

1,301

Formation

Listed Company(KOSDAQ : 003670) as of 10/31/2001

A Company of POSCO Group

Bank Details

Busan Bank-Pohang Branch

Citibank, Korea

Corporate Registered No.

174611-0001947

Business Registered No.

506-81-01452

Permit & Licenses

Int’l Trade No.: 553942

Shareholder Position

Name

Shares

%

POSCO(174611-0000741)

3,544,200

60.00

SEI ASSET KOREA CO., LTD.(110111-0563208)

349,320

5.91

KOREA VALUE ASSET MANAGEMENT CO., LTD.(110111-3398959)

295,682

5.01

POSTECH(174631-0000129)

295,350

5.00

OTHERS

1,422,448

24.08

TOTAL

5,907,000

100.00

Company History

05/13/1971 Incorporated as POHANG Industrial Furnace Co., Ltd.

03/1987 Changed company name to Pohang Furnace Co., Ltd.

04/1993 Changed company name to Geoyang Furnace Co., Ltd.

12/1994 Acquired Samhwa Hwasung Co., Ltd., and changed company name to POSCO Furnace Equipment Co., Ltd.

04/2001 Changed company name to POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(POSREC)

03/19/2010 Changed company name to the present name

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Kim Jin-Il

Korean

1953.02.01

-

Sr. Executive Director

Mr.

Song Jae-Hyun

Korean

1953.12.21

Chungbuk National University, Korea

Executive Director

Mr.

Yoo Kyu-Sik

Korean

1956.12.20

Postech, Korea

Outside Director

Mr.

Nam In-Sik

Korean

1950.01.21

Vice President of Postech, Korea

Auditor

Mr.

Kang Dae-Hee

Korean

1955.11.26

Dankuk University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2011

1,186,622,662,490

479,615,361,821

92,391,379,400

(*)09/2011

868,498,167,467

441,893,756,903

68,236,629,626

2010

756,053,098,966

355,865,343,802

56,082,879,935

2009

574,400,917,130

257,455,235,344

33,089,195,425

2008

446,939,291,376

233,414,681,198

25,180,724,257

2007

290,199,319,851

174,308,257,280

16,899,406,721

2006

268,957,364,912

155,513,726,878

14,297,348,736

2005

250,179,952,576

146,321,713,013

16,607,215,385

(*)09/2011 ‘s figures are based on the K-IFRS Accounting System.

(*) The financials (2011) are released by the subject company as tentative figures as of 01/26/2012. It can be changeable by the Auditors confirmation.

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

29,535,000,000

Total Issued Shares

5,907,000

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2011~09/30/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

441,893,756,903

371,159,500,484

 

Current Assets

339,966,845,519

293,584,756,569

 

Cash & Cash Equivalents

36,597,141,866

39,256,659,954

 

Current Financial Instruments

82,000,320,514

51,894,692,247

 

Trade Receivables

141,316,063,977

118,057,528,879

 

Inventories

78,543,984,207

83,057,810,734

 

Other Current Assets

1,509,334,955

1,318,064,755

 

Non-Current Assets

101,926,911,384

77,574,743,915

 

Tangibles

75,699,917,281

58,266,069,772

 

Intangibles

5,699,467,863

4,008,141,017

 

Investment_Subsidiaries

12,359,767,749

9,029,767,771

 

Other Financial Assets

6,819,976,888

4,659,498,720

 

Investment_Real Estates

255,203,310

255,203,310

 

Other Non-Current Assets

1,092,578,293

1,356,063,325

 

Total Liabilities

139,480,963,035

128,254,143,364

 

Current Liabilities

119,255,007,765

110,364,216,385

 

Trade Payables

76,745,922,909

77,907,798,361

 

Other Current Financial Debts

13,424,796,965

11,939,977,748

 

Accrued Income Tax

15,244,065,685

10,980,675,803

 

Other Current Liabilities

13,840,222,206

9,535,764,473

 

Non-Current Liabilities

20,225,955,270

17,889,926,979

 

Long-Term Borrowings

50,000,000

50,000,000

 

Provision for Severance & Retirement

13,073,249,976

12,026,565,348

 

Deferred Income Tax Credit

4,191,130,391

5,813,361,631

 

Other Liabilities

2,911,574,903

0

 

Capital Stock

29,535,000,000

29,535,000,000

 

Profit Surplus

249,227,586,110

189,720,149,362

 

Capital Surplus

23,650,207,758

23,650,207,758

 

Total Equity

302,412,793,868

242,905,357,120

 

Liab. & Shareholder’s Equity

441,893,756,903

371,159,500,484

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Total Assets

355,865,343,802

257,455,235,344

233,414,681,198

Current Assets

293,537,603,449

209,786,290,533

190,997,795,647

-Quick Assets

210,479,792,715

156,365,978,501

124,580,110,292

-Inventories

83,057,810,734

53,420,312,032

66,417,685,355

Fixed Assets

62,327,740,353

47,668,944,811

42,416,885,551

-Investment

12,276,768,521

7,778,802,781

5,870,423,869

-Tangibles

42,896,296,460

33,657,275,251

30,518,882,762

-Intangibles

1,904,201,928

2,673,386,329

2,462,277,823

-Others

5,250,473,444

3,559,480,450

3,565,301,097

Total Liabilities

120,929,845,346

74,372,603,447

78,686,432,128

Current Liabilities

107,223,856,111

62,523,073,690

66,267,977,143

Fixed Liabilities

13,705,989,235

11,849,529,757

12,418,454,985

Capital Stock

29,535,000,000

29,535,000,000

29,535,000,000

Capital Surplus

23,650,207,758

23,650,207,758

23,650,207,758

Profit Surplus

180,738,576,804

129,085,946,869

100,427,001,444

Capital Adjustment

1,011,713,894

811,477,270

1,116,039,868

Total Equity

234,935,498,456

183,082,631,897

154,728,249,070

Liab. & Shareholder’s Equity

355,865,343,802

257,455,235,344

233,414,681,198

 

 

Income Statement

 

Unit : Korean Won

01/01/2011~09/30/2011

As of 12/31/2010

As of 12/31/2009

Sales

868,498,167,467

 

 

Cost of Sold Goods

745,099,810,245

 

 

Gross Profit

123,398,357,222

 

 

Admin. Expenses

31,587,464,626

 

 

Selling Expenses

3,752,603,948

 

 

Other Operating Income

1,618,306,265

 

 

Other Operating Expenses

2,922,070,419

 

 

Operating Income

86,754,524,494

 

 

Finance Income

4,417,796,666

 

 

Finance Expenses

1,201,692,897

 

 

Income Before Taxes

89,970,628,263

 

 

Income Taxes Expenses

21,733,998,637

 

 

Net Income

68,236,629,626

 

 

 

Income Statement

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Sales

756,053,098,966

574,400,917,130

446,939,291,376

Cost of Sold Goods

646,255,402,109

502,317,683,250

384,433,680,054

Gross Profit

109,797,696,857

72,083,233,880

62,505,611,322

Selling & Admin. Expenses

39,607,220,938

30,596,077,272

30,408,156,208

Operating Income

70,190,475,919

41,487,156,608

32,097,455,114

Non-Operating Income

6,462,742,395

5,639,905,427

7,985,112,597

Non-Operating Expenses

4,198,444,730

4,414,726,899

5,646,527,149

Income Before Taxes

72,454,773,584

42,712,335,136

34,436,040,562

Income Taxes Expenses

16,371,893,649

9,623,139,711

9,255,316,305

Net Income

56,082,879,935

33,089,195,425

25,180,724,257

 

 

Cash Flows

 

Unit : Korean Won

01/01/2011~09/30/2011

As of 12/31/2010

As of 12/31/2009

Operating Activities Cash Flows

57,651,376,716

 

 

Cash Flows from Operating

72,080,289,340

 

 

Net Income

68,236,629,626

 

 

Adjustment

29,478,710,338

 

 

Changes in Asset/ & Liability

-25,635,050,624

 

 

Interests Received

2,976,790,760

 

 

Interests Paid

-190,520,703

 

 

Dividends Received

255,426,074

 

 

Income Taxes

-17,470,608,755

 

 

Cash Flows from Investing

-54,403,894,804

 

 

Cash Inflow from Investing

87,841,517,547

 

 

Cash Outflows for Investing

-142,245,412,351

 

 

Cash Flows from Financing

-5,907,000,000

 

 

Cash Inflows from Financing

0

 

 

Cash Outflows from Financing

-5,907,000,000

 

 

Increase/Decrease in Cash

-2,659,518,088

 

 

Cash at the Beginning of Year

39,256,659,954

 

 

Cash at the End of Year

36,597,141,866

 

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2010

As of 12/31/2009

As of 12/31/2008

Cash Flows from Operating

55,848,805,046

36,959,211,154

11,535,702,682

-Net Income

56,082,879,935

33,089,195,425

25,180,724,257

-Exp. without Cash Outflow

18,223,299,798

14,488,600,510

12,716,485,194

-Revenue without Cash Inflows

-817,666,440

-1,043,859,045

-1,861,589,605

-Changes in Asset/ & Liability

-17,639,708,247

-9,574,725,736

-24,499,917,164

Cash Flows from Investing

-53,148,581,776

-14,915,663,511

8,656,625,124

-Cash Inflow from Investing

47,923,366,575

17,723,014,957

33,218,949,765

-Cash Outflows for Investing

-101,071,948,351

-32,638,678,468

-24,562,324,641

Cash Flows from Financing

-4,430,250,000

-4,430,250,000

-4,430,250,000

-Cash Inflows from Financing

0

50,000,000

0

-Cash Outflows from Financing

-4,430,250,000

-4,480,250,000

-4,430,250,000

Increase/Decrease in Cash

-1,730,026,730

17,613,297,643

15,762,077,806

Cash at the Beginning of Year

40,986,686,684

23,373,389,041

7,611,311,235

Cash at the End of Year

39,256,659,954

40,986,686,684

23,373,389,041

 

Products, Technologies, Services Description

 

Main Products & Services

Manufacturing and selling of general refractories, building and repairing furnaces,  environmental business

 

Manufacturing Refractories

* Basic Refractories (135 excluding MgO-C Bricks)

* Clinkers (5 excluding SSMD)

* Unshaped Refractories (53 excluding Spray type)

* Acid, neutral and special Refractories

 

Maintenance work for Steel Mill Industrial Furnaces

* Repairing Blast Furnaces(Dismantling, blasting and building works)

* Designing and manufacturing various industrial furnaces

 

Engineering and manufacturing various industrial furnaces

* Furnaces for the still industry : Heating Furnaces, Heat   Treatment Furnaces

* Furnaces for non-ferrous metals : Melting Furnaces, Plating   Furnaces

* Furnaces for the ceramic industry : S/K, T/K,RHK, Super high   temperature Firing Furnaces

*Incinerators : Ash Melting Incinerators

 

Environment enhancement products

* SSEFREMA : Anti Red Tide chemicals and marine sediment improvement chemicals

* SUMAG : Acidic waste water neutralizer

* GUNMAG : Air environmental chemicals

* WATRAMAG : Water treatment additives

* Flue-gas desulfurization facilities : Flue-gas desulfurization facilities manufacturing and work

 

Fertilizers

* ALGAEMAG : Algae elimination additives (rivers, lakes)

* MAGVITA : Hydroxide dolomitic fertilizer

 

Inorganic additives

* Non-flammable additives, Ferrite

 

Brand Name : MgO-C

 

 

Trade Partners & Competitors

 

Customers

POSCO(174611-0000741)

Competitors

CHOSUN REFRACTORIES CO.,LTD.(201111-0000440)

DONGKUK REFRACTORIES & STEEL CO., LTD.(195511-0069249)

KOREA REFRACTORIES CO.,LTD.(184611-0000319)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

POSCO(174611-0000741)

POSCO COATED & COLOR STEEL CO., LTD.(174611-0006492)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSDATA CO., LTD.(110111-0658637)

POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(174611-0001947)

SAMJUNG PACKING AND ALUMINUM CO., LTD.(174611-0000866)

POS-A.C. CO., LTD.(174611-0003448)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSCO RESEARCH INSTITUTE(110111-1042350)

POSTEEL(110111-0344591)

POSCO SPECIALTY STEEL CO., LTD. (194211-0025248)

POSMEC(POSCO MACHINERY & ENGINEERING CO., LTD.)(174611-0012176)

POSCO TERMINAL CO., LTD.(204611-0017575)

POSTECH VENTURE CAPITAL COOPERATION (174611-0029080)

POSMATE CO., LTD.(110111-0739841)

POSCO POWER CORPORATION(110111-1829576)

SNNC CO., LTD.(204611-0023415)

PHP CO., LTD.(120111-0421545)

POSBRO(110111-3528986)

SUWON GREEN ENVIRONMENT CORPORATION(134811-0133794)

POSCORE CO., LTD.(134811-0003343)

RIZTECH BIZ CO., LTD.

POSWITH CO., LTD.(171711-0075927)

P&R CO., LTD.

UITRANS CO., LTD.(110111-3792309)

BASYS INDUSTRY CO. LTD.(110111-0954647)

UNIVERSAL STUDIOS RESORT DEVELOPMENT CORPORATION(134811-0167222)

METAPOLIS CO., LTD.(134811-0094475)

SEOUNG GWANG CO., LTD.(120111-0222844)

CHEONGNA IBT CO., LTD.(120111-0454520)

POHANG FEUL CELL CO., LTD.(171711-0076256)

MEGA ASSET  CO., LTD.(161511-0097480)

DAEWOOENGINEERING COMPANY CO., LTD.(110111-0203268)

 

(*)The below companies has been newly joined as affiliated companies to POSCO GROUP in 2010.

POS ECO HOUSING CO., LTD.( 171711-0085893)

DAKOS CO., LTD.(131111-0246297)

MAPO HYBROAD PARKING CO., LTD.(110111-4250140)

GWANGYANG FSC CO., LTD.(204611-0031385)

POSPLATE CO., LTD.(204611-0031252)

POS CALCIUM CO., LTD.(171711-0086180)

(70.0% held by the subject company)

Joint Venture

YOUNGKU POCHEOL FURNACE EQUIPMENT CO., LTD.(CHINA)

(25.0% held by the subject company)

 

YONYEONG YOUNGWON POCHEOL FURNACE CO., LTD.(CHINA)

(35.0% held by the subject company)

 

JANGAHANG POHANG FURNACE EQUIPMENT CO., LTD.(CHINA)

(50.0% held by the subject company)

Subsidiary

POSCALCIUM COMPANY, LTD.(171711-0086180)

POSGREEN COMPANY, LTD(204611-0032466)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2011

2010

2009

Export

28,158

11,866

11,202

Domestic

840,340

744,187

563,199

Total

868,498

756,053

574,401

The Subject exports to China and Japan. It also imports from China.

 

 

Court Action

 

No.

 

 

News Clipping

 

---

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.49.21

UK Pound

1

Rs.77.75

Euro

1

Rs.64.58

 

 

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.