MIRA INFORM REPORT

 

 

Report Date :

22.06.2012

 

IDENTIFICATION DETAILS

 

Name :

POSCO SPECIALTY STEEL CO., LTD.

 

 

Formerly Known As :

CHANGWON SPECIALTY STEEL CO.,LTD.

 

 

Registered Office :

65, Sinchon-dong, Chang-won-si, Gyeongsangnam-do, Korea, Zip Code 641-370

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2012

 

 

Date of Incorporation :

14.02.1997

 

 

Com. Reg. No.:

609-81-29083

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Steel Wire

 

 

No. of Employees :

1,249

 

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 :

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)

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 SPECIALTY STEEL CO., LTD.

(Korean Company Name : “포스코특수강()”)

Registered Address

65, Sinchon-dong, Chang-won-si, Gyeongsangnam-do, Korea

Zip Code

641-370

Tel

+82-55-269-6114

Fax

+82-55-269-6901

E-mail

cssinfo@changwonsteel.co.kr;cs116603@poscoss.co.kr;ikechang@poscoss.co.kr

Website

www.poscoss.co.kr;www.cssteel.co.kr

Trading Address

5th Fl., Daegong Bldg., 823-21, Yeoksam 1-dong, Gangnam-gu, Seoul, Korea

Tel

+82-55-269-6189

Fax

+82-2-3469-6888

Type

Export

Industry

Manufacture of Steel Wire

  Main Business

Round Bars, Flat Bars, Square Bars, Wire Rods, Seamless Pipe

Established (mm/dd/yyyy)

02/14/1997

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Bar(30101600)

Sell

Billets(30103300)

Sell

Pipe(40142100)

Sell

Rod(30102400)

Sell

Steel bars(30101604)

 

 

CEO’s

 

Name

Seong Hyun-Uk

Date of Birth

03/23/1950

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

130,000,000,000

Employees

1,249

Formation

Co., Ltd by shares

A Company of POSCO Group

Bank Details

Woori Bank-Changwon Branch

SC First Bank of Korea

Shinhan Bank

Corporate Registered No.

194211-0025248

Business Registered No.

609-81-29083

Permit & Licenses

04/09/1997 KS Mark

0/08/1997 JIS

12/12/1997 ISO 9002

05/11/1998 TUV

12/05/2000 ISO 14001

12/01/2002 ISO 9001

01/11/2005 ISO 9001 by KAQ

02/2/2006 ISO 14001 by KAQ

 

Int’l Trade No.: 24013136

Shareholder Position

Name

Shares

%

POSCO(174611-0000741)

26,000,000

100.00

TOTAL

26,000,000

100.00

Company History

02/14/1997 Incorporated as CHANGWON SPECIALTY STEEL CO., LTD.

03/16/2004 Agreement on taking over the operation of Changwon Specialty Steel’s Maintenance Business Div. from POSCO MACHINERY & ENGINEERING CO., LTD.

11/26/2004 Awarded US$300 Million Export Top Prize

11/30/2005 Awarded US$400 Million Export Top Prize

02/14/2007 Changed company name to the present name from CHANGWON SPECIALTY STEEL CO.,LTD.

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Seong Hyun-Uk

Korean

1950.03.23

Youngnam University, Korea

Vice President

Mr.

Jang Young-Ik

Korean

1953.12.18

Dongah University, Korea

Director

Mr.

Seo Young-Se

Korean

1955.07.11

Foreign Studies of Hankuk University, Korea

Auditor

Mr.

Eom Ki-Choon

Korean

1959.12.25

Kyungbuk National University, Korea

Sr. Executive Director

Mr.

Ahn Kyung-Soo

Korean

1956.06.28

Kunkuk University, Korea

Executive Director

Mr.

Kang Deuk-Sang

Korean

1960.09.09

Korea University, Korea

 


Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2012

381,233,068,421

1,472,435,422,067

42,316,020,672

(*)2011

1,662,895,933,177

1,582,729,146,335

127,573,387,534

(*)2010

1,543,122,293,143

1,307,488,976,178

101,900,846,147

2009

1,271,037,122,662

972,260,104,367

64,993,801,409

2008

1,679,748,221,937

1,007,588,365,957

77,316,309,453

2007

1,553,616,007,725

1,062,479,264,361

60,237,906,991

2006

1,147,746,490,710

969,823,927,036

47,436,432,695

2005

1,142,118,666,634

 815,687,254,846

 37,208,984,142

2004

1,006,406,592,810

741,325,076,882

33,469,997,152

2003

729,580,614,108

658,583,823,437

334,594,439

(*)03/2012, 2011 & 2010’s figures are based on the K-IFRS Accounting System.

 

 

Financial Description

 

Authorized Capital(KRW)

500,000,000,000

Paid-Up Capital(KRW)

130,000,000,000

Total Issues Shares

26,000,000

 

 

Balance Sheet

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

1,472,435,422,067

1,582,729,146,335

1,307,488,976,178

Current Assets

541,422,149,245

660,590,745,733

688,845,882,934

Cash & Cash Equivalents

156,060,436,307

271,466,753,505

263,822,522,815

Trade Receivables

135,074,721,158

108,620,027,819

109,703,097,832

Other Finance Assets

25,281,776,082

48,299,275,584

39,900,568,721

Inventories

223,784,020,673

231,718,577,989

275,003,945,130

Other Current Assets

1,221,195,025

486,110,836

415,748,436

Non-Current Assets

931,013,272,822

922,138,400,602

618,643,093,244

Non-Current Financial Instruments

11,337,198,903

11,383,890,102

9,308,854,930

Investment_Related Companies

80,364,054,920

80,364,054,920

41,277,454,920

Investment_Real Estates

6,552,522,109

6,563,872,633

6,609,274,729

Tangibles

826,592,308,169

817,249,686,789

554,262,058,675

Intangibles

6,167,188,721

6,576,896,158

7,185,449,990

Total Liabilities

542,652,426,454

691,477,473,151

536,888,407,305

Current Liabilities

293,156,574,297

442,989,353,210

343,804,595,750

Trade Payables

184,819,252,115

166,394,807,783

183,516,708,232

Short-Term Borrowings

2,663,390,000

2,678,620,000

62,896,181,709

Other Current Financial Debts

93,830,423,635

249,299,694,427

62,907,788,373

Accrued Income Tax

8,773,911,789

20,798,066,046

29,621,691,026

Other Current Liabilities

3,069,596,758

3,818,164,954

4,862,226,410

Non-Current Liabilities

249,495,852,157

248,488,119,941

193,083,811,555

Long-Term Borrowings

225,867,484,311

226,424,803,501

165,349,972,745

Other Non-Current Financial Debts

305,658,381

294,724,383

291,573,279

Confirmed Salaries

14,436,959,329

13,125,485,527

18,602,143,214

Deferred Income Tax Credit

8,885,750,136

8,643,106,530

8,840,122,317

Capital Stock

130,000,000,000

130,000,000,000

130,000,000,000

Capital Surplus

124,995,341,017

124,995,341,017

124,995,341,017

Others

 

 

63,179,300

Profit Surplus

674,787,654,596

636,256,332,167

515,542,048,556

Total Equity

929,782,995,613

891,251,673,184

770,600,568,873

Liab. & Shareholder’s Equity

1,472,435,422,067

1,582,729,146,335

1,307,488,976,178

 

 

Income Statement

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

381,233,068,421

1,662,895,933,177

1,543,122,293,143

Cost of Sold Goods

332,749,082,980

1,472,488,798,723

1,383,896,709,265

Gross Profit

48,483,985,441

190,407,134,454

159,225,583,878

Admin. Expenses

5,789,587,140

24,786,459,230

22,690,064,431

Selling Expenses

2,137,066,060

9,040,096,214

8,506,348,318

Other Operating Income

1,330,272,038

6,602,746,742

8,670,330,055

Other Operating Expenses

361,608,593

1,967,502,744

3,033,946,696

Operating Income

41,525,995,686

161,215,823,008

133,665,554,488

Finance Income

3,049,778,967

17,016,708,064

13,474,032,421

Finance Expenses

2,739,954,071

14,961,388,202

14,755,331,836

Income Before Taxes

41,835,820,582

163,271,142,870

132,384,255,073

Income Taxes Expenses

-480,200,090

35,697,755,336

30,483,408,926

Net Income

42,316,020,672

127,573,387,534

101,900,846,147

 

 

Cash Flows

 

Unit : Korean Won

01/01/2012~03/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

51,324,006,307

154,407,926,966

234,776,020,403

Cash Flows from Operating

61,783,746,771

196,763,804,507

242,899,859,091

Net Income

42,316,020,672

127,573,387,534

101,900,846,147

Adjustment

12,297,762,867

99,060,814,313

118,706,277,469

Changes in Asset/ & Liability

7,169,963,232

-29,870,397,340

22,292,735,475

Interests Received

3,034,328,831

10,212,071,111

6,244,063,543

Interests Paid

-2,265,147,355

-9,398,385,130

-6,531,027,626

Dividends Received

109,200,000

302,145,750

563,559,300

Income Taxes

-11,338,121,940

-43,471,709,272

-8,400,433,905

Cash Flows from Investing

-162,213,207,447

-143,668,100,224

-127,113,341,668

Cash Inflow from Investing

30,059,162,485

159,189,200,958

27,312,856,701

Cash Outflows for Investing

-192,272,369,932

-302,857,301,182

-154,426,198,369

Cash Flows from Financing

-4,556,480,000

-3,038,039,064

92,369,183,767

Cash Inflows from Financing

-

63,789,080,936

159,496,143,767

Cash Outflows from Financing

-4,556,480,000

-66,827,120,000

-67,126,960,000

Increase/Decrease in Cash

-115,445,681,140

7,701,787,678

200,031,862,502

Cash at the Beginning of Year

271,569,995,653

263,868,207,975

63,836,345,473

Cash at the End of Year

156,124,314,513

271,569,995,653

263,868,207,975

 

 

Products, Technologies, Services Description

 

Main Products & Services

Structures and Building and Construction and Manufacturing Components and Supplies

Structural materials and basic shapes

Distribution and Conditioning Systems and Equipment and Components

Fluid and gas distribution

Tube and tubing

 

Wire Rods & Bars

 

- Available Grades & Applications

Stainless Steel

Heat Resisting Steel

Steel Machine Structural Use

Steel For Tool & Special Use

Super Alloy

 

- The Available Size & Tolerance

Round & Square Bars

Wire Rods

Wide Flat Bars

 

- Packing

 

Seamless Pipes & Tubes

 

- Available Grades & Applications

- The Available Size & Tolerance

Pipe for Ordinary Piping

Tubes for Boiler & Heat Exchanger

Tubes for Structural Purposes

 

- Packing

 

Product Shapes & Dimensions

- Product Shapes & Dimensions

Annual Production Capacity (Unit : Ton)

Bar & Wire rods:783,000

Seamless Tube & Pipe:17,000

Total 800,000

 

 

Trade Partners & Competitors

 

Suppliers

ROTEM

VAI-POMNI

MORGAN

UTAB

NKMZ

Tae Chang Machinery

Dae Kyo ENG.

Customers

Sales Channel

- Domestic : End-User, Wholesalers

- Overseas : Through Int'l Trading Companies, Direct Exporting

 

Conditions

- Sales by customer's demands

- Credit within 75 days

- Granting Credit with collaterals

- Local L/C or L/C

Competitors

KISWIRE LTD.

475, MANGMI 2-DONG, SUYEONG-GU, BUSAN, KOREA

TEL:+82-51-760-1700  FAX:+82-51-757-7379

 

KOSTEEL CO., LTD.

4TH FL., HOUSTORY, 32-4, JEONNONG 2-DONG, DONGDAEMUN-GU, SEOUL, KOREA

TEL:+82-2-2106-0200  FAX:+82-2-581-8800

 

SEAH SPECIAL STEEL CO., LTD.

747, JANGHEUNG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-285-4771  FAX:+82-54-285-4095

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

POSCO(174611-0000741)

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

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)

POSCON(174611-0002242)

POSTEEL(110111-0344591)

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

POSCO MACHINERY CO., LTD.(206411-0010175)

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)

UITRANS CO., LTD.(110111-3792309)

BASYS INDUSTRY CO. LTD.(110111-0954647)

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)

ENTOB CORPORATION(110111-2059362)

(0.625% held by the subject company)

Overseas Office

POSCOSS  VINA CO., LTD.(VIETNAM)

Corporate Ownership

POSCO(174611-0000741)

1, GOEDONG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO 790-704 KOREA

TEL: +82-54-220-0114 FAX: +82-54-220-6000

Major Shareholders

POSCO(174611-0000741)

1, GOEDONG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO 790-704 KOREA

TEL: +82-54-220-0114 FAX: +82-54-220-6000

Cooperative Enterprise

-Insured Company

SAMSUNG LIFE INSURANCE CO., LTD.(110111-0005953)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2012

2011

2010

Export

72,595

321,113

 311,095

Domestic

308,638

1,341,783

  1,232,027

Total

381,233

1,662,896

1,543,122

 

The Subject imports from Australia and Canada.

 

 

Court Action

 

No.

 

News Clipping

 

---


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.56.42

UK Pound

1

Rs.88.45

Euro

1

Rs.71.52

 

INFORMATION DETAILS

 

Report Prepared by :

MNL

 

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.