MIRA INFORM REPORT
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Report Date : |
14.03.2012 |
IDENTIFICATION DETAILS
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Name : |
BROMINE COMPOUNDS LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.09.2010 |
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Date of Incorporation : |
11.01.1961 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, exporters
and marketers of bromine
compounds |
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No. of Employees : |
10,625
employees in the ICL Group (of which some 5,000 employees in Israel), of which
2,567 employees in ICL IP Division, to which subject belongs |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
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Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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a2 |
a2 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
BROMINE COMPOUNDS LTD.
Telephone 972
8 629 72 22
Fax 972
8 628 04 44
Maklef House
BEER SHEVA -84894 -ISRAEL
A private limited company, incorporated as per file No. 51-027339-4 on the
11.01.1961. Since 1962 parent company (DSBG) has the State sole concession for
extracting bromine and its compounds (current license is till 2030).
Authorized share capital
1,611,111,110
ordinary shares (1,595,659,395 issued) of
1 special share of
of which shares
amounting to
Company is fully
owned by DEAD SEA BROMINE COMPANY LTD. (DSBG), a fully owned subsidiary of ISRAEL
CHEMICALS LTD. (ICL), a public limited company whose shares are traded on the
Tel Aviv Stock Exchange (TASE).
ICL is controlled
(52.4%) by THE ISRAEL CORPORATION LTD., also publicly traded on TASE, controlled
(55%) by the OFER Group, owned by the Ofer family,
and controlled by Idan Ofer (mainly) and
POTASH
CORPORATION OF SASKATCHEWAN (PCS) holds 13.9% of ICL (during March 2010
invested some
The State of Israel
holds one single special share in subject, given the fact subject holds rights
on
Up till November
2000 parent DSBG shares were traded on the Tel Aviv Stock Exchange. In November
2000 subject’s “grandparent” ICL reached full control over DSBG. after it
acquired 10.8% of its shares from the public in consideration of
1. Nir Gilad, Chairman of ICL,
2. Akiva Moses, Chairman of subject and CEO of
ICL,
3.
Yossi
Rosen,
4.
Asher
Greenbaum,
5.
Eli
Amit,
6.
Amnon Sadeh,
7.
Yakov
Dior,
8.
Avisar
Paz,
9.
Yosi
Shachar,
10.
Yossi
Lastigzon,
11.
Avi
Dueitchman,
12.
13.
Shlomo
Maoz,
14.
Amir
Makov,
15.
Yair
Orgler,
16.
Avraham
(Beiga) Sochat (former Minister of Finance).
Nissim Adar.
Subject is part of ICL Industrial
Products (ICL-IP), headed by the DEAD SEA
BROMINE GROUP (known as “DSBG”).
ICL-IP sales comprised some 22% of ICL total 2009 and 2010 first 9 months
sales (18% in 2008).
Manufacturers,
exporters and marketers of bromine compounds and other industrial chemicals
based on minerals extracted from the Dead Sea, the world’s largest bromine
source (methyl bromide, sodium, potassium and ammonium bromides, etc.), for
agricultural and industrial purposes, mainly plastics industry and chemicals for oil/gas
drilling, etc. and are also used as flame retardants, mainly for the
electronics industries.
97% of sales are
to overseas markets.
Yearly production
capacity of Bromine Compounds is of
400,000 tons (149,000 tons produced in 2009) and 280,000 tons of Elementry Bromine
(128,000 tons produced in 2009).
Most of ICL-IP products are bromine-based (the rest is chlorine-based,
magnesia-based and others). Most of the bromine extracted is for ICL own
production (some 80%), the rest is sold to 3rd parties.
Among local suppliers: SIG INDUSTRIES, PETRUS TECHNICAL SUPPLY, ATEKA,
AMGAL CHEMICALS, MODCHEM, LEAD CONTROL, A.D. SINUN, YAMATON, HAL DOR IMPORT,
PURE CHEMICALS, APPLIED CHEM, SEVEN SEAS SHIPPING (shipping services), E.S.T.
PROJECTS, etc.
Subject and DSBG
are operating from head offices in Maklef House, 12, Kreutzer Street,
Industrial Zone, Beer Sheva, a large plants compound in Ramat Hovav and a plant
in Sodom (in the Dead Sea shores).
ICL-IP also operate from
plants
in the USA, China, Germany, France, Ireland and in the Netherlands, as well as
from a Logistic Center in the Netherlands, and from marketing and service
offices in several other countries.
There are 10,625
employees in the ICL Group (of which some 5,000 employees in
Financial data is
included in the consolidated statements of parent company, ISRAEL CHEMICALS
LTD., which shows:
US$ (thousands)
ASSETS 30.09.2010 31.12.2009
Current assets:
Cash and cash equivalents 307,880 257,970
Investments, deposits and
short term loans 214,022 167,549
Customers 969,365 969,620
Other receivables 182,285 143,106
Stock 1,053,662 1,233,250
2,727,514 2,771,495
Non-current assets:
Investments and other
non-current assets 494,969 476,278
Fixed assets 2,162,824 2,093,133
Intangible assets 549,411 566,683
3,207,204 3,136,094
5,934,718 5,907,589
======== ========
LIABILITIES
Current Liabilities 1,122,256 1,169,617
Non-current liabilities 2,278,666 1,943,123
Equity 2,533,796 2,794,849
5,934,718 5,907,589
======== ========
ICL’s current
market value US$ 21,944 million.
Total assets of ICL-IP as of
31.12.2009 summed up to US$ 1,441.3 million.
Subject is an
“Approved Enterprise” and as such enjoys tax benefits and State incentives,
including from The Chief
Scientist Office. DSBG
received an approval from the Israel Investment Centre (IIC) for a US$ 50
millions expansion plan for the Bromine plant in
There are 3
charges for unlimited amounts registered on the company’s assets, in favor of
State of Israel and foreign company CRYSTAL PURCHASING LTD.
Subject pays royalties
to the State of Israel as part of the rights given for mineral production from the
ICL-IP 2008 sales
were US$ 1,254.2 million (35.5% increase from 2007), making an operating profit of US$ 104.9 million.
ICL-IP 2009 sales
were US$ 1,015.1 million, making a gross profit
of US$ 236.5 million and an operating profit
of US$ 20.9 million.
ICL-IP 2010 first
9 months sales were US$ 966.6 million (30.8% increase compared to the parallel
period of 2009), making an operating profit
of US$ 139.8 million.
DSBG ended 2007 with a
consolidated net profit of US$ 79,463,000.
DSBG ended 2008 with a
consolidated net profit of US$ 30,852,000.
DSBG ended 2009 with a
consolidated net profit of US$ 67,286,000.
ISRAEL
CHEMICALS LIMITED
Consolidated
Statement of Income
US$
(thousands)
Year
ended 31.12
2007 2008 2009
Sales 4,103,179 6,904,049 4,554,316
Gross profit 1,558,136 3,445,275 1,836,530
Operating income 742,586 2,335,489 938,173
Income before taxes
on income 669,914 2,227,209 942,806
Net income 550,184 1,993,968 774,314
======== ======== ========
ICL consolidate sales for the first 9 months of 2010 were US$
4,270,894,000 (28.3% increase compared to the parallel period in 2009), making
a gross profit of US$ 1,805,081,000, an operating profit of US$ 1,007,035,000,
and a net profit of US$ 782,412,000.
Subject's subsidiaries:
· BROMINE COMPOUNDS MARKETING (2002) LTD., 100%,
· TETRABROM TECHNOLOGIES LTD., 50%,
· CHEMADA FINE CHEMICALS LTD., 26%,
· L.B BROMINE COMPOUNDS LTD., 50%.
Also part of ICL
Industrial Products and DSBG,
headed by parent company DEAD SEA BROMINE
COMPANY LTD. (among others):
· TAMI IMI INSTITUTE FOR RESEARCH &DEVELOPMENT LTD.,
·
ICL-IP AMERICA INC.,
·
ICL-IP JAPAN LTD.,
·
LANDCAM LIMITED,
· DEAD SEA PRICLASE FUSED PRODUCTS, General Partnership,
·
BROMINE & CHEMICALS LIMITED,
·
EUROCLEARON B.V., the
·
ICL-IP EUROPE B.V., the
· ICL IP TERNEUZEN B.V.,
·
SINOBROM (75%,
Other companies
part of the ICL Group, among many others:
ICL Fertilizers Division:
ICL FERTILIZERS
MARKETING LP,
ROTEM AMFERT
NEGEV LTD., producers, exporters and marketers
of a varitey of products based on phosphate rock mined in the
FERTILIZERS AND
CHEMICALS LTD., manufacturers, importers and marketers of fertilizers and
chemicals, mainly for the agriculture sector, nitrogen and phosphorus fertilizers,
industrial chemicals, feed additives, etc.
·
EUROCHIL HOLDING B.V.,
·
·
·
ROTEM HOLDING
·
ROTEM BKG
·
ROTEM DU BRAZIL LTD,
·
ROTEM ANFERT NEGEV B.V.,
· ICL FERTILIZERS MARKETING LP
·
ICL FERTILIZERS (
DEAD SEA WORKS LTD., producers, manufacturers, exporters and
marketers of potash and other chemicals from the
·
CLEAVLAND POTASH LIMITED,
·
P.M. CHEMICALS SRL,
·
RANTHAI AGRO CO. LTD.,
ICL Performance Products:
·
ICL PERFORMANCE PROD
·
B.K. GIULINI GmbH, a subsidiary in
·
ASTARIS INC. of the
ICL Metallurgy, headed by DEAD SEA MAGNESIUM LTD., producers, manufacturers, exporters and marketers
of magnesium and related products, producing magnesium from the
Others:
MIFALEI TOVALA
LTD., land transportation, bulk
transportation.
I.D.E.
TECHNOLOGIES LTD., 50%, desalination facilities and water treatment.
And many others,
including companies in the ICL Group and THE ISRAEL CORP. concern.
Bank Leumi Le’Israel Ltd.,
Beer Sheva Branch (No. 921), Beer Sheva.
Bank Hapoalim Ltd., Beer
Sheva Branch (No. 631), Beer Sheva.
In November
Apart from that,
nothing unfavorable learned.
DSBG is
considered of the world’s leading company in the bromine market, with estimated
production of 35% of the total elementary bromine production in the world and
lead in the bromine-based flame retardant products market. Imports amount to
US$ 100 million per annum. In addition, it is a world’s leading producer of
specialty phosphates based on purified phosphoric acid.
ICL is a multi-national concern, among the world's leading suppliers of
minerals and one of the largest industrial concerns in
ICL Group,
including subject and the ICL-IP Division, has been adversely affected by the global
economic crisis that hit world markets. The crisis includes the sectors and
industries subject is selling to, such as the electronics, construction,
automotive, oil drilling and water treatment, all which have been suffering
from fall in demand, therefore has negative impact on subject. During 2009 ICL-IP Div. (in which
subject is its main industrial company) periodically halted several production
lines due to the sharp fall in global demand for elementary
bromine and bromine-based flame retardant products used in the electronic
industries. On the other hand, the parallel prices fall in raw materials for
production benefits subject and compensates for some of the decrease in
profitability.
Yet, since the 4th
quarter of 2009 there has been a turn in the trend of demands, thanks to some
recovery in worlds markets, as seen in the improvement in financial results
above.
The ISRAEL CORP.,
part of the OFER Group, is
Subject meets ISO 9000, ISO 14000 quality
standards.
DSBG signed long term cooperation agreement
with the DOW CHEMICALS Group, including with subsidiary DOW AGROSCIENCE (value
of the agreements - of around US$ 100 million per annum). Also signed a joint
venture agreement with the Chinese leading chemical company SHANDONG HAIHUA
SHAREHOLDING COMPANY LTD., for a joint establishment of a manufacturing and
marketing plant in
DSBG also signed in 2001 an agreement with
one of the largest Japanese companies, D.K. (manufacturers and marketers of chemical
products), for the formation of a joint venture, for manufacturing and
marketing of delaying combustion chemical products for the
In September 2005, ICL
acquired ASTARTIS, producers of phsphate-based products of the
In the beginning
of 2007 ICL acquired also the assets and activities of Canadian FIRETROL, which
develops phosphoric based products for fire extinguishing (in forests, etc.).
In August 2007
ICL acquired American SUPRESTA, manufacturers of phosphorus products for fire
safety, in consideration of US$ 352 million (by ICL own finance). SUPRESTA is
the leading company in its field in the world. ICL's products for fire safety
were so far based on bromine, and the purchase expands this line of products to
the new area.
In November 2007,
ICL Performance Products acquired BIOGEMA of France, producers of fire
extinguishing products, for several
Also as part of
ICL strategy to expand its Industrial Products and Performance Products market
share, in December 2009 ICL announced the recent acquisition of 6 European
companies in the fields of water purification (MEDENTECH of Ireland) and
hygiene (including PRIMALAB of France, HYPROCLEAN of Germany and EKULINE’s
cleaning products Div.), for estimated total sum of US$ 40 million.
ICL Group's plants are expected to benefit
from the shift of the Group's use in natural gas as energy source (replacing
the ISRAEL ELECTRICITY CORP. conventional electricity power) apart of the end
of 2008, after the infrastructure for the gas conveyance will be completed. ICL
expects to save US$ 100 million per year due to the shift of energy source. In March 2008
subject signed an agreement with
In May 2010 it
was reported that DSBG is benefiting
from the decrease in bromine salt levels in
In June 2010 it was reported that ICL
signed transportation contracts with ISRAEL RAILWAYS for cargo from the Dead
Sea and
On December 21st,
2010 the Israeli Parliament voted to cancel ICL special tax benefits, as part
of an extensive reform concerning royalties from State resources.
The local
Chemical industry is considered one of the strongest in the market, with
impressive growth trend in recent years. The chemical industry includes
minerals extracted, refinery and petrochemical industry, manufacturing of pesticides
for agriculture, pharmaceuticals and bio-technology industries, as well as
other consumer products related industries, including paints, cosmetics,
cleaning materials and others. The industry employs 30,000 employees.
Total turnover of
the local Chemical Industry in 2008 amounted to US$ 24 billion, comprising 30%
of
A recovery in
chemicals export has been notice during the first half of 2010 with rise of
over 44% from 2009 1st half, reflecting the recovery in global
markets.
According to Central Bureau of Statistics data, investments
in machinery and equipment from import for the Chemicals (incl.
Pharmaceuticals) and Oil Refinery industries in 2009 summed up to NIS 1,818
million, representing a 9% decrease in real terms from 2008 (after 18.7%
increase from 2007).
Good for trade engagements.
Good for all credits.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.49.85 |
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|
1 |
Rs.77.97 |
|
Euro |
1 |
Rs.65.62 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>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 |
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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 |
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<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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.