MIRA INFORM REPORT

 

 

Report Date :           

12.03.2012

 

IDENTIFICATION DETAILS

 

Name :

BASF PETRONAS CHEMICALS SDN. BHD.

 

 

Registered Office :

Level 18, The Gardens North Tower, Mid Valley City, Lingkaran Syed Putra, Kuala Lumpur, Wilayah Persekutuan, Zip/postal code 59200

 

 

Country :

Malaysia

 

 

Financials (as on) :

31.12.2010

 

 

Date of Incorporation :

28.10.1997

 

 

Com. Reg. No.:

451307-K

 

 

Legal Form :

Private Limited Company Limited By Shares

 

 

Line of Business :

Production and marketing of essential raw materials such as acrylic monomers, oxo products and butanediol products

 

 

No. of Employees :

109,600 (BASF Group)

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 20,000,000

 

 

Status :

Good

 

 

Payment Behaviour :

Usually Correct

 

 

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)

Malaysia

a2

a2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 Bottom of Form

Identification details  Bottom of Form

 

 

Verified Address

 

Subject name                :           BASF PETRONAS CHEMICALS SDN. BHD.

Business address          :           No. 2, Jalan U8/87, Seksyen U8 Bukit Jelutong

Town                             :           Shah Alam

Province                        :           Selangor Darul Ehsan

Zip/postal code              :           40706

Country                         :           Malaysia

Tel                                :           +60 3 78412200

Fax                               :           +60 3 78466624

Email                            :           info.service@basf-petronas.com.my 

Website                        :           www.basf-petronas.com.my 

Registered address        :           Level 18, The Gardens North Tower

Mid Valley City

Lingkaran Syed Putra

Town                             :           Kuala Lumpur

Province                        :           Wilayah Persekutuan

Zip/postal code              :           59200

Country                                                           :                       Malaysia

 

 

Summary details

 

Executive Summary

 

Date founded or registered          :   28/10/1997

Legal form                                 :   Private Limited Company Limited By Shares

Chief executive                          :   Dr. Joachim Queisser

Issued & paid up capital             :   MYR 1,000,000,000

Sales turnover                            :   MYR 3,427,887,000 (Non-consolidated 12 months, 31/12/2010)

Net income                                :   MYR 1,318,640,000 (Non-consolidated 12 months, 31/12/2010)

Total fixed assets                       :   MYR 1,675,215,000 (Non-consolidated 12 months, 31/12/2010)

Line of business                         : Production and marketing of essential raw materials such as acrylic monomers, oxo products and butanediol products

Staff employed                                                                        :   109,600 (BASF Group)

 

 

Credit risk opinion

 

Company Analysis

 

Country risk                               :   Country risk is minimal

Operation trend                          :   Operational trend is booming

Management experience :   Management is adequately experienced

Financial performance                :   Financial performance is very good

Organization structure                :   Organizational structure is consistent

Detrimental                    :   No detrimental records found

Payment history                                    :   No payment delays noted

Credit amount suggestion     :   USD 20,000,000

Credit amount asked                  :   Not described.

Comments                                                      :   Larger credit can still be granted.

 

 

Statutory details

 

Registry Data

 

Registration date                        :   28/10/1997

Legal form                                 :   Private Limited Company Limited By Shares

Registration no                             451307-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                :           Dr. Joachim Queisser

Designation       :           Managing

 

Director Name   :           Roslina Ibrahim

Designation       :           Financial Manager

 

 

Board of directors / other appointments

 

Appointments

 

Name                           :      Professor Dr. Rainer Diercks

 

Designation                   :      Director

 

Identification no             :      225206719

 

Appointment date          :      24/02/10

 

Address                        :      Philipp Melanchthon Strabe 21

       67346 Speyer

       Germany

 

Name                           :      Dr. Joachim Queisser

 

Designation                   :      Director

 

Identification no             :      332604864

 

Appointment date          :      01/08/11

 

Address                        :      No 5 Seventy Damansara

70 Jalan Damansara

50480 Kuala Lumpur Wilayah Persekutuan Malaysia

Biography                   :      Dr. Queisser started his career with BASF in 1996 and served several key management positions with the BASF in Europe. Dr. Queisser served as vice-president of Production, Engineering Plastics (Europe) in Ludwigshafen, Germany at BASF Petronas Chemicals Sdn. Bhd. Dr. Queisser holds a Ph.D from the University of Karlsruhe in Germany.

 

 

Name                         :      Abd Hapiz Bin Abdullah

 

Designation                :      Director

 

Identification no           :      581007-10-6261

 

Appointment date        :      09/06/11

 

Address            :           No 24 Jalan Serunai 2

Taman Klang Jaya

41200 Klang

Selangor Darul Ehsan

Malaysia

 

Biography                                                  :            Dr Abd Hapiz bin Abdullah, a Malaysian aged 53, is an Executive

 

 

Director. He was appointed as the President/Chief Executive Officer of PETRONAS Chemicals Group Berhad on 1 May 2011. He holds a Doctor of Philosophy in Organic Chemistry from Utah State University, USA and a Bachelor of Science in Chemistry from University of Nevada, USA. He has more than 25 years of technical, marketing and business development experience in the Chemical Manufacturing industry. In 1985, he joined Dow Chemical Malaysia and held several positions including as Regional Asia Pacific Technical Manager for Dow Chemical Polyolefins Asia Pacific and as Regional Asia Pacific Marketing Manager for Dow Chemical Polyolefins Asia Pacific. From 1995 to March 2011, he was with DuPont Malaysia Sdn Bhd. Over the last 15 years in DuPont

Malaysia Sdn Bhd, Dr Abd Hapiz bin Abdullah held several senior positions from General Manager to Country Manager for Malaysia and in 1999, he was the Managing Director of DuPont Malaysia Sdn Bhd and Regional Manager, Asia Pacific Packaging & Industrial Polymer. His last position held in DuPont Malaysia Sdn Bhd since

2007 was as the Managing Director of DuPont Malaysia Sdn Bhd and Regional Director, Asia Pacific Glass laminating Solution. He is currently the Chairman of Chemical Industries Council of Malaysia

and Executive Council member of International Chamber of

Commerce Malaysia.

Dr Abd Hapiz bin Abdullah was appointed to the Board of

PETRONAS Chemicals Group Berhad on 1 May 2011.

 

 

Name                         :      Wan Zulkiflee Bin Wan Ariffin

 

Designation                :      Director

 

Identification no           :      600819-07-5545

 

Appointment date        :      13/08/10

 

Address                     :      No 5 Jalan 14/1

Taman Tun Abdul Razak

68000 Ampang Wilayah Persekutuan Malaysia

Biography                   :      A Malaysian aged 51, is a Non Independent Non-Executive Director.

He was appointed as the Chairman of PETRONAS Chemicals Group Berhad on 22 June 2010. He holds a Bachelor of Engineering Degree in Chemical Engineering from the University of Adelaide, South Australia. In 2000, he attended the INSEAD Senior Management Development Program and in 2004, he attended the Advanced Management Program at Harvard Business School, Harvard University. He was conferred the Honorary Fellowship by the Institution of Chemical Engineers, UK in November 2005.

Since joining PETRONAS in 1983, Datuk Wan Zulkiflee has held various positions within the PETRONAS Group including serving in the Office of the President as Executive Assistant to the President, General Manager, International Projects Management Division of OGP Technical Services and General Manager for the Strategy and Business Development Unit. He was the Managing Director/Chief Executive Officer of PETRONAS Gas Berhad from 2003 to 2007 and Vice President of Gas Business from April 2006 till April 2010.

Datuk Wan Zulkiflee bin Wan Ariffin is currently the Executive Vice

President, Downstream Business of PETRONAS and is a member of

 

 

PETRONAS Board of Directors, the Executive Committee, Management Committee and serves on various Boards of several Joint Ventures and Subsidiary Companies in the PETRONAS Group. He is the Chairman of PETRONAS Dagangan Berhad and a member of the Board of Directors for MISC Berhad. He is also the Industry Advisor to the Engineering Faculty, University Putra Malaysia. Datuk Wan Zulkiflee bin Wan Ariffin was appointed to the Board of PETRONAS Chemicals Group Berhad on 15 December 2008.

 

 

Name                         :      Saori Ulrike Dubourg

 

Designation                :      Director

 

Identification no           :      646750091

 

Appointment date        :      10/11/09

 

Address                     :      Suite 2701 Pasific Place Apartments

Pacific Place 88

Queeensway

Hong Kong

 

Name                         :      Linda Christine Danker Designation                :      Company Secretary Identification no           :      690722-05-5048

Appointment date        :      01/02/08

 

Address                     :      11 USJ 3/3R

47600 Subang Jaya Selangor Darul Ehsan Malaysia

Staff employed            :      109,600 (BASF Group)

 

 

Key Advisors

 

 

Auditors                     :      KPMG Desa Megat & Co.

Kpmg Tower

8 First Avenue

Bandar Utama

47800 Petaling Jaya Selangor Darul Ehsan Malaysia

 

 

 


Share capital

 

Composition

 

Authorized Capital                                 :   MYR 2,400,000,000

 

No of shares                                         :   2,375,000 Ordinary Shares / 25,000 Preference Shares

 

Share par value                                     :   MYR 100,000

 

Issued capital                                       :   MYR 1,000,000,000

 

Paid up capital                                                                                              :   MYR 1,000,000,000

 

 

ownership / shareholders

 

How listed                                            :   Full List

 

Composition

Shareholder name                                  :   BASF NEDERLAND B.V.

Address                                                :   Postbus 1037

Sortieweg 39

Maastricht 6219 NT Netherlands

No. of shares                                        :   600,000 Ordinary Shares

 

Shareholder name                                  :   PETRONAS CHEMICALS GROUP BERHAD

Address                                                :   Level 15 Tower 1

Petronas Twin Towers

Kuala Lumpur City Centre

50088 Kuala Lumpur Wilayah Persekutuan Malaysia

No. of shares                                        :   400,000 Ordinary Shares

 

Comments                                            :   Subject is a joint venture between BASF SE of Germany one of the world's largest chemical companies and Malaysia's state owned Petroleum Corporation Petroliam Nasional Berhad (PETRONAS).

 

The signing of the shareholders agreement in August 1997 with an initial investment of RM3.4 Billion brought together a vast amount of experience, innovation, cutting edge technology and an abundance of strategically located high quality resources.

 

Today, operating from one of the largest Integrated Chemical Sites in the Asia Pacific, BASF PETRONAS Chemicals, has progressed to become a leading chemical company, fundamental in producing and marketing chemical products which are ever present and highly essential in consumers' daily lives.

Related companies & corporate Affiliations

 

Structure

 

Name                                                 :   BASF SE

 

Affiliation type                                     :   Ultimate Holding Company

 

Address                                                :   Carl Bosch Strasse 38

67056 Ludwigshafen

Germany

 

Comments                                         :   BASF SE operates as a chemical company worldwide. Its Chemicals segment primarily provides basic chemicals, glues, and electronic chemicals for the semiconductor and flat panel display industry; solvents and plasticizers; and starting materials for detergents, plastics, textile fibers, paints, coatings, and pharmaceuticals. The company’s Plastics segment supplies performance polymers, including engineering plastics, polyamides and polyamide intermediates, foams, and specialty plastics; and polyurethanes, such as basic products, systems, and specialties for automotive, construction, and furniture industries, as well as household appliances and sports equipment. Its Performance Products segment offers pigments, resins, dispersions, additives, protective films, adhesive tapes, and resins for water-based printing systems; polymers, surfactants, chelating agents, UV filters, and other specialties; human and animal nutrition products; and binders, functional and process chemicals, and kaolin minerals. This segment also offers antioxidants, pigments, light stabilizers, and specialty additives; water treatment chemicals; superabsorbents; active ingredients, such as caffeine and ibuprofen; excipients and customized synthesized services; and aroma chemicals. The company’s Functional Solutions segment offers automotive and process catalysts; adsorbents; concrete admixtures and construction systems for the building sector; automotive and industrial coatings; and architectural coatings. The BASF’s Agricultural Solutions segment provides fungicides, insecticides, and herbicides, as well as seed treatment products for crop protection. Its Oil and Gas segment engages in the exploration and production of crude oil and natural gas in Europe, North Africa, South America, Russia, and the Caspian Sea region, as well as in the trade, transport, and storage of natural gas in Europe. BASF SE was founded in 1865 and is headquartered in Ludwigshafen, Germany.

 

 


Name                                        :   BASF NEDERLAND B.V.

Affiliation type                            :   Parent Company

Address                                    :   Postbus 1037

Sortieweg 39

Maastricht

6219 NT Netherlands

Comments                                         :   The subject is involved in the production and sale of more than 9000 chemical, raw materials and intermediates.

 

 

Name                            :   PETRONAS CHEMICALS GROUP BERHAD

Affiliation type                :   Minority Shareholder

Address                        :   Level 15 Tower 1

Petronas Twin Towers

Kuala Lumpur City Centre

50088 Kuala Lumpur

Wilayah Persekutuan

 

 

Comments                                         :   Petronas Chemicals Group Berhad, through its subsidiaries, manufactures and markets petrochemicals. Its products include olefins, including ethylene, propylene, and pyrolysis gasoline; polymers comprising vinyl chloride monomer, polyvinyl chloride, low density polyethylene, and polypropylene; fertilizers, such as granular urea and ammonia; and glycols consisting of mono-ethylene glycol, di-ethylene glycol, and re-destilled ethylene oxide. The company’s products also

comprise methanol; aromatics, such as benzene and paraxylene; and other basic specialty chemicals and derivates, including MTBE, ethanolmines, nonvl and octvl phenol ethoxylates, polyethylene and polyalkylene glycols, butanol/isobutanol, oxogas, and carbon dioxide, as well as butyl glycol ethers, butyl acetate, and

butyl acylate. Petronas Chemicals Group’s products are used in the production of polypropylene, acrylic acids, acrylic esters, and oxo-alcohols; manufacture of woven bags, plastics, films, ropes, yam, chairs, food and garment packaging, and other industrial and consumer products; production of pipes, pipe and conduit fittings, automobiles, blow moulding, roofing tiles, bottles, containers, films, wires, and cables; manufacture of polyester resins for fibers and PET containers and bottles, and brake fluid formulations; production of purified terephthalic acid; and production of surfactants, personal care products, urethane foam, cement and construction applications, detergents, and emulsifiers. The company sells its products to distributors, traders, and manufacturers serving the packaging, household, construction, and agricultural markets, as well as manufacturers of industrial products. It operates in Malaysia, southeast Asia, and internationally. The company was incorporated in 1998 and is based in Kuala Lumpur, Malaysia.

 

Name                            :   BASF HANDELS- UND EXPORT GMBH

Affiliation type                :   Sister Company

Address                        :   Ludwigshafen Rhine Germany

 

Name                            :   BASF BETEILIGUNGSGESELLSCHAFT GMBH

Affiliation type                :   Sister Company

Address                        :   Ludwigshafen Rhine Germany

 

Name                            :   BASF (MALAYSIA) SDN. BHD.

Affiliation type                :   Sister Company

Address                        :   No. 2, Jln U8/87. Seksyen U8

Bukit Jelutong, 40706 Shah Alam

Selangor Darul Ehsan

Malaysia

 

 

Name                            :   BASF ASIA PACIFIC SERVICE CENTRE SDN .BHD.

Affiliation type                :   Sister Company

Address                        :   Level 25 Menara Telekom

Jalan Pantai Baharu

59200 Kuala Lumpur Wilayah Persekutuan Malaysia

 

Name                            :   BASF COMPANY LTD.

Affiliation type                :   Sister Company

Address                        :   Yeosu-si

South Korea

 

Comments                    BASF started its business in Korea in 1954, and is today one of Korea's top ten chemical companies as well as an exemplary international company in Korea. BASF Company Ltd. was established in 1998 and provides a broad portfolio in Korea from four business units Chemicals, Specialties, Polyurethanes and Thermoplastics – and has six world-scale production sites in Yeosu, Ulsan, Gunsan and Ansan. BASF also has an application technology center in Daejeon, a coatings technical center in Ansan, and a technical service center in Shiheung.

 

 

Name                                        :   BASF VIETNAM CO. LTD.

Affiliation type                            :   Sister Company

Address                                    :   12 Tu Do Boulevard Viet Nam Singapore IP Thuan An Binh Duong Vietnam

 

Name                                        :   BASF CHILE S.A.

Affiliation type                            :   Sister Company

Address                                    :   Av. Carrascal 3851

7360081 RCH-Santiago de Chile

Casilla 3238

6501020 Santiago de Chile

Chile

 

 


Related companies and corporate affiliations comments

Other companies of the BASF SE Group should be considered affiliates of the Subject

 

 

Bank & mortgages

 

Bank Details

 

Name of bank    :   Malayan Banking Berhad (Maybank) Address   :   Malaysia

Account details  :   Current Account

 

Name of bank    :   CIMB Bank 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                             :   None reported.

 

Legal Fillings

Bankruptcy fillings          :   None Reported.

Court judgements           :   None Reported.

Tax liens                       :   None Reported.

Others                          :   None Reported.

 

 

financials

 

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 3.17 as of 28-09-2011

 


Summarized Financial Information

Consolidation type                                                                                        :   Non Consolidated                Non Consolidated               Group Consolidated Currency                                                                                                       :   Malaysia, Ringgit (MYR)       Malaysia, Ringgit (MYR)     Euro (EUR) 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                                                                             :   3,427,887,000                     1,947,130,000                    63,873,000,000

 

Gross profit                                                                                              :                                                                                                                                                                        18,563,000,000

 

Operating profit                                   :                                                                                    7,761,000,000

 

Profit before tax                                  :

1,294,401,000

196,323,000

7,373,000,000

Net income                                        :

1,318,640,000

161,243,000

4,557,000,000

Non current assets                             :

512,098,000

814,760,000

34,532,000,000

Current assets                                    :

1,163,117,000

922,919,000

24,861,000,000

Inventories                                          :

 

 

8,688,000,000

Total assets                                       :

1,675,215,000

1,737,679,000

59,393,000,000

Current liabilities                                 :

269,950,000

202,974,000

15,568,000,000

Non current liabilities                           :

0

59,212,000

21,168,000,000

Total liabilities                                    :

269,950,000

262,186,000

36,736,000,000

Share equity                                       :

1,405,265,000

1,475,493,000

22,657,000,000

Retained earning                                 :

405,265,000

471,493,000

15,817,000,000

 

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 BASF SE and all its subsidiaries which include the Subject.

 

 

Operation details

 

Main activities                                       :   The company is principally involved in the production and marketing of essential raw materials such as acrylic monomers, oxo products and butanediol products for final application in a wide range of consumer products.

 

The Subject is part of BASF SE which is a chemical company. The Company operates in six segments: Chemicals, Plastics, Performance Products, Functional Solutions, Agricultural Solutions and Oil & Gas. Chemicals segment offers products in the chemical, electronic, construction, textile, automotive, pharmaceutical and agricultural industries. Plastics segment offers a range of products, system solutions and services. Performance Products help its customers to improve their products and processes. Functional Solutions segment bundles system solutions and products for customers and industries. The Agricultural Solutions segment includes crop protection products, which guard against fungal diseases and insects. Its Oil & gas segment produces oil and gas. In April 2010, Intertek Group plc acquired the Regulatory and Safety Testing businesses of Ciba Expert Services from the Company. In December 2010, BASF completed the acquisition of Cognis Holding GmbH from Cognis Holding Luxembourg S.a r.l.

 

 

Product & services                     :   1)Acrylic Monomers

-Glacial Acrylic Acid

-Butyl Acrylate (BA)

 

2) Plasticizer

-di-2-ethyl hexyl phthalate

 

3)Oxo Alcohol

- Normal-butanol

- Iso butanol

 

4)Butanediol & Derivatives

-Tetrahydrofuran

-Gamma-butyrolactone

 

 

Purchases

 

Local                                                    :   Yes

 

International                                          :   Europe, Asia

 

Sales

 

Local                                                    :   Yes

 

International                                          :   Worldwide

 

Key events                                           :   Kuala Lumpur , Malaysia – March 29, 2011 – BASF and PETRONAS will commence a feasibility study for a new plant for superabsorbent polymers. The companies have also decided to look into the expansion of the existing production capacities of their joint venture BASF PETRONAS Chemicals Sdn Bhd.

 

“Our joint venture BASF PETRONAS Chemicals plays an important role for us in achieving our Asia Pacific Strategy for 2020. With this investment in high-growth specialty chemicals, we will position ourselves even better to serve our customers in Asia,” said Dr. Martin Brudermüller, Member of the Board of Executive Directors, BASF SE, responsible for Asia Pacific. “With this capacity expansion and extension into superabsorbent polymers we extract further potential of our acrylics value chain in BASF PETRONAS Chemicals.”

 

 

Datuk Wan Zulkiflee Wan Ariffin, Executive Vice President of Downstream Business, PETRONAS said, “The future of petrochemical industry will be shaped by changes in global mega-trends such as growing health awareness resulting in strong growth in demand for specialty chemicals including superabsorbent polymers for personal hygiene application. The success of our joint venture with BASF has provided us the confidence to look for further collaboration opportunities into higher value adding portfolio and position PETRONAS to be a key player in petrochemicals in the region.”

 

 

The new investment will be part of BASF PETRONAS Chemicals Sdn Bhd, founded by BASF and PETRONAS in 1997. The company currently operates an integrated complex situated at the Gebeng Industrial Zone, Pahang. The company’s share of capital is 60% held by BASF and 40%

by PETRONAS with a total investment of about RM3.4 billion for production facilities for acrylic monomers, oxo products and butanediol.

 

 

Superabsorbent polymers are materials with the ability to absorb and retain large volumes of water and aqueous solutions. They are made from partially neutralised, lightly cross-linked poly acrylic acid and are the key ingredients in disposable diapers, feminine hygiene and adult incontinence products. They are also used in cable insulation, potting soils and professional compost mixes, food packaging, and medical waste disposal.

 

About PETRONAS

PETRONAS is a Global Fortune 500 company wholly owned by the Government of Malaysia, principally involved in all spectrum of integrated oil, gas and petrochemical industries. For the year ended 31 March 2010, PETRONAS recorded a group revenue of US$62.5 billion. More information on PETRONAS is available on www.petronas.com.

 

About BASF

BASF is the world’s leading chemical company: The Chemical Company. Its portfolio ranges from chemicals, plastics, performance products and agricultural products to oil and gas. As a reliable partner BASF creates chemistry to help its customers in virtually all industries to be more successful. With its high-value products and intelligent solutions, BASF plays an important role in finding answers to global challenges such as climate protection, energy efficiency, nutrition and mobility. BASF posted sales of about €63.9 billion in 2010 and had approximately 109,000 employees as of the end of the year. BASF shares are traded on the stock exchanges in Frankfurt (BAS), London (BFA) and Zurich (AN).

 

Property & assets

 

Premises                                           :   The Subject operates from premises located at the verified heading address consisting of administrative office.

Branches                                           :   In addition the Subject operates from a Kuantan Integrated Chemical Site located at:

 

Jalan Gebeng 2/1

Kawasan Perindustrian Gebeng

26080 Kuantan Pahang Malaysia

Tel: +609 585 5000

Fax: +609 583 4623

 

The 150-hectre Integrated Chemical Site (including the port tank farm area) currently comprises 12 plants built in three phases producing acrylic monomers, oxo products and butanediol. The complex is one of the largest integrated chemical sites in the Asia Pacific region.

 

Total capital expenditure for the projects at the Gebeng site is about Euro 900 million.

 

 

Summarized country risk

 

Gross Domestic Products (GDP) & Economic Overview

 

Central bank                                         :   Central Bank of Malaysia

 

Reserve of foreign exchange & gold         :   US$136.3 billion as of 29 August 2011

 

Gross domestic product - GDP               :   US$ 247.781 billion

 

GPP (Purchasing power parity)               :   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%

2010 3.3%

Public debt

(General Government gross

debt as a % GDP)                                  2008:  42.8 %

2009:   55.4%

2010:    55.2%

 

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 (Banking), Maybank (Banking), Tenaga Nasional(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

 

International                                          :   L/C, Credit up to 120 days

 

Sales Term

 

Local                                                    :   Prepayment, Cash against document, Credit up to 120 days

 

International                                          :   L/C, Prepayment, Credit up to 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.50.02

UK Pound

1

Rs.79.00

Euro

1

Rs.66.18

 

 

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

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NB

New Business

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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.