MIRA INFORM REPORT

 

 

Report Date :

09.10.2012

 

IDENTIFICATION DETAILS

 

Name :

HYUNDAI WELDING CO., LTD.

 

 

 

Registered Office :

16th Fl., Ilsong Bldg. 157-37, Samseong 1-dong, Gangnam-gu, Seoul, Korea 135-880

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

03.09.1975

 

 

Com. Reg. No.:

214-81-24202

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Other Fabricated and Processed Metal Products

 

 

No. of Employees :

714

 

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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

SOUTH KOREA - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and currently is among the world's 20 largest economies. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea''s development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. With the global economic downturn in late 2008, South Korean GDP growth slowed to 0.3% in 2009. In the third quarter of 2009, the economy began to recover, in large part due to export growth, low interest rates, and an expansionary fiscal policy, and growth was 3.6% in 2011. In 2011, the US-South Korea Free Trade Agreement was ratified by both governments and is projected to go into effect in early 2012. The South Korean economy''s long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise half of GDP.

Source : CIA


Basic Information

 

Company Name

HYUNDAI WELDING CO., LTD.

(Korean Company Name : “현대종합금속()”)

Registered Address

157-37, Samseong 1-dong, Gangnam-gu, Seoul, Korea

Building

16th Fl., Ilsong Bldg.

Zip Code

135-880

Tel

+82-2-6230-6010~2

Fax

+82-2-598-6928

E-mail

matthew@hyundaiwelding.com;grkim@hyundaiwelding.com

Website

www.hdweld.co.kr

Trading Address

16th Fl., Ilsong Bldg., 157-37, Samseong 1-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-6230-6010~2

Fax

+82-2-598-6928

Other Address-Icheon Factory

9-2, Saeum-dong, Icheon-si, Gyeonggi-do, Korea

Tel

+82-31-636-3100

Fax

+82-31-636-3957

Other Address-Pohang Factory

90-5, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-289-6214

Fax

+82-54-286-6275

Other Address-Ulsan Office

843-2, Hyomun-dong, Buk-gu, Ulsan, Korea

Tel

+82-52-276-1063

Other Address-Geoje Office

1058-8, Mujeon-dong, Tongyeong-si, Gyeongsangnam-do, Korea

Tel

+82-55-688-5812

Other Address-Daegu Office

1st Fl., Samwon Bldg., 414-3, Manchon-dong, Suseong-gu, Daegu, Korea

Tel

+82-53-751-7071

Other Address-Daejeon Branch

254-23, Daehwa-dong, Daedeok-gu, Daejeon, Korea

Tel

+82-42-635-2240

Other Address-Gwangju Branch

1588-1, Usan-dong, Gwangsan-gu, Gwangju, Korea

Tel

+82-61-462-9984

Fax

+82-61-462-9985

Other Address-Busan Office

229, Bujeon-dong, Busanjin-gu, Busan, Korea

Tel

+82-51-802-1124

Fax

+82-51-802-4445

Type

Export/Import

Industry

Manufacture of Other Fabricated and Processed Metal Products n.e.c

  Main Business

Welding Electrodes, Micro Plasma Welding Machines, Solid Wire, Welders

  Sub Business

 

Established (mm/dd/yyyy)

09/03/1975

The Subject owns the premises of Pohang Factory.

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Welders(23171508)

Sell

Welding rods(23171512)

Sell

Welding wire(23171510)

 

CEO’s

 

Name

Kim Sang-Wook

Address

Suite 102-1701, 1607, Jangseong-dong, Buk-gu, Pohang-si, Gyeongbuk, Korea

Date of Birth

11/13/1951

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

5,000,000,000

Employees

714

Formation

Co., Ltd by shares

Bank Details

Woori Bank

Kookmin Bank

Shinhan Bank-Seocho Branch

Korea Exchange Bank

Korea Development Bank

Corporate Registered No.

110111-0185193

Business Registered No.

214-81-24202

Permit & Licenses

02/1995 ISO 9002 by LRQA

12/16/1998 ISO 9001

01/09/2000 KS Mark

 

Int’l Trade No.: 771535

Shareholder Position

Name

Shares

%

CHUNG MONG-SEOK

900,000

90.00

GLOVIL PROCESS CO., LTD.(110111-1724677)

100,000

10.00

TOTAL

1,000,000

100.00

Company History

09/03/1975 Incorporated as SEOHAN DEVELOPMENT CO., LTD.

08/1976 Completed calcium carbide factory in Danyang

01/1977 Completed electrode plant in Pohang

05/1978 Established new submerged wire production facilities

09/1978 Established new solid wire production facilities

09/1978 Established a technical tie with Sweden ESAB Corporation and imported submerged arc welding flux production technology

12/1980 Initiated submerged arc welding flux production

01/1984 Produced low fume electrode for the first time in Korea

02/1986 Certified by Japanese Industrial Standard Marking Institute

01/1987 Changed a company name as HYUNDAI WELDING CO., LTD.

09/1989 Initiated metal stamping business

10/1989 Established HYUNDAI WELDING JAPAN CO., LTD in Tokyo

01/1994 Established HYUNDAI WELDING (S'PORE) PTE., LTD.

02/1994 Established a technical tie with OERLIKON Corporation in Switzerland and imported stainless electrode production technology

02/1995 Obtained ISO 9002 certificate (LRQA Certificate No. 941752)

03/1995 Established SUNGWOO PRECISION CO., LTD.

09/1995 Expanded electrode production facilities in Pohang (3,000MT / Month)

09/1995 Expanded solid wire production facilities in Pohang (3,000MT / Month)

04/1996 Expanded flux cored wire production facilities in Pohang (3,000MT / Month)

06/1996 Established H.W.M.C. Malaysia SDN. BHD.

12/1996 Established HYUNDAI WELDING (Europe) GmbH

02/1997 Established HYUNDAI WELDING PRODUCTS. INC(USA)

04/1997 Completed SUNGWOO PRECISION factory in Echeon

09/1997 HYUNDAI WELDING COMPANY(Australia)

10/1997 HYUNDAI WELDING PRODUCTS S.A.(South Africa)

12/1997 Established R&D Center in Pohang

07/1999 Acknowledged Pohang R&D Center (attached) by Korea Industrial Technology Association (No. 991626)

04/2001 Merged with SUNGWOO PRECISION CO., LTD.

08/2001 Acknowledged Echeon R&D Center (attached) by Korea Industrial Technology Association (No. 20012522)

06/27/2002 Moved to the present HQ address from 1424-2, Seocho-dong, Seocho-gu, Seoul, Korea

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Kim Sang-Wook

Male

Korean

09/01/2004

Director

Mr.

Chung Mong-Seok

Male

Korean

03/27/1994

Director

M/S.

Ahn Jung-Hae

Female

Korean

03/02/2001

Auditor

Mr.

Chung Eun-Sung

Male

Korean

05/17/2006

Supervisor

Mr.

Baik Seung-Kyu

Male

Korean

07/25/2005

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

545,268,226,871

610,639,932,648

26,301,083,161

2010

445,648,249,227

686,742,041,457

38,543,193,053

2009

421,937,456,557

460,915,154,484

11,701,234,546

2008

437,744,162,775

485,294,417,416

23,453,778,693

2007

285,857,919,177

539,400,902,009

6,278,432,406

2006

252,160,909,997

249,618,871,528

8,192,521,619

2005

210,033,997,791

215,391,401,107

7,982,015,743

2004

177,272,417,896

150,849,303,237

8,637,465,594

 

 

Financial Description

 

Authorized Capital(KRW)

6,000,000,000

Paid-Up Capital(KRW)

5,000,000,000

Total Issued Shares

1,000,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

610,639,932,648

686,742,041,457

460,915,154,484

Current Assets

248,710,196,330

194,713,870,032

167,609,914,719

-Quick Assets

158,947,554,573

121,511,376,772

101,936,648,689

-Inventories

89,762,641,757

73,202,493,260

65,673,266,030

Fixed Assets

361,929,736,318

492,028,171,425

293,305,239,765

-Investment

267,105,694,185

411,379,284,664

208,490,340,459

-Tangibles

86,890,568,543

71,299,511,998

74,484,451,301

-Intangibles

56,671,057

79,550,281

91,486,890

-Others

7,876,802,533

9,269,824,482

10,238,961,115

Total Liabilities

366,014,212,930

301,068,180,178

243,367,932,390

Current Liabilities

281,045,036,915

217,556,753,883

192,050,303,705

Fixed Liabilities

84,969,176,015

83,511,426,295

51,317,628,685

Capital Stock

5,000,000,000

5,000,000,000

5,000,000,000

Capital Surplus

21,040,769,949

21,040,769,949

21,040,769,949

Profit Surplus

77,652,952,871

101,351,869,710

92,808,676,657

Capital Adjustment

140,931,996,898

258,281,221,620

98,697,775,488

Total Equity

244,625,719,718

385,673,861,279

217,547,222,094

Liab. & Shareholder’s Equity

610,639,932,648

686,742,041,457

460,915,154,484

 

Current Liabilities

281,045,036,915

217,556,753,883

192,050,303,705

Trade Payables

60,865,906,062

52,610,104,277

44,722,393,710

Short-Term Borrowings

178,731,923,500

124,851,645,078

134,466,774,510

Current Portion of Long-Term Debts

7,558,327,500

20,053,797,800

49,763,700

Account Payables

13,767,160,881

6,620,877,005

8,480,053,178

Advance Receipts

172,976,399

418,701,152

477,615,913

Withholdings

1,233,793,431

1,179,557,577

1,266,796,027

Accrued Expenses

4,244,402,437

2,391,181,382

2,161,476,288

Guarantee Deposit Withhold

55,000,000

105,000,000

100,000,000

Accrued Income Tax

14,415,546,705

9,325,889,612

325,430,379

Fixed Liabilities

84,969,176,015

83,511,426,295

51,317,628,685

Debentures

20,000,000,000

5,000,000,000

-

Long-Term Borrowings

19,541,850,700

300,178,200

17,753,614,800

Provision for Severance & Retirement

9,793,865,617

7,981,443,924

8,130,450,044

Long-Term Account Payables

207,638,710

108,000,000

-

Deferred Income Tax Credit

45,219,686,605

77,268,279,888

31,129,753,143

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

545,268,226,871

445,648,249,227

421,937,456,557

Cost of Sold Goods

454,561,339,505

375,658,186,587

365,588,154,231

Gross Profit

90,706,887,366

69,990,062,640

56,349,302,326

Selling & Admin. Expenses

45,394,459,590

50,235,355,920

39,741,377,605

Operating Income

45,312,427,776

19,754,706,720

16,607,924,721

Non-Operating Income

21,887,636,657

47,687,429,729

19,740,267,288

Non-Operating Expenses

22,002,985,942

16,434,719,588

20,386,638,828

Income Before Taxes

45,197,078,491

51,007,416,861

15,961,553,181

Income Taxes Expenses

18,895,995,330

12,464,223,808

4,260,318,635

Net Income

26,301,083,161

38,543,193,053

11,701,234,546

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

766,876,464

2,830,456,760

-177,207,880

-Net Income

26,301,083,161

38,543,193,053

11,701,234,546

-Exp. without Cash Outflow

15,945,686,582

15,069,885,683

15,816,505,789

-Revenue without Cash Inflows

-7,229,793,544

-38,128,058,248

-6,198,479,147

-Changes in Asset/ & Liability

-34,250,099,735

-12,654,563,728

-21,496,469,068

Cash Flows from Investing

-24,119,948,233

33,816,022,295

-48,404,509,175

-Cash Inflow from Investing

3,465,862,629

75,708,027,523

2,479,571,837

-Cash Outflows for Investing

-27,585,810,862

-41,892,005,228

-50,884,081,012

Cash Flows from Financing

25,626,480,622

-32,064,531,932

43,373,888,510

-Cash Inflows from Financing

455,998,762,072

7,600,000,000

43,419,024,510

-Cash Outflows from Financing

-430,372,281,450

-39,664,531,932

-45,136,000

Increase/Decrease in Cash

2,273,408,853

4,581,947,123

-5,207,828,545

Cash at the Beginning of Year

25,746,300,811

21,164,353,688

26,372,182,233

Cash at the End of Year

28,019,709,664

25,746,300,811

21,164,353,688

 

Products, Technologies, Services Description

 

Main Products & Services

Welding Consumables

-Covered Electrodes

-Submerged Flux & Wire

-Solid Wire

-FCW

-MIG/TIG

 

Welding Machines

-TIG

DC ARC

Air Plasma Cutter

 

 

Trade Partners & Competitors

 

Competitors

KISWEL CO., LTD.

721-3, HAKJANG-DONG, SASANG-GU, BUSAN, KOREA

TEL:+82-51-317-3131~40  FAX:+82-51-325-3627

 

CHOSUN WELDING CO., LTD.

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

TEL:+82-54-285-8221  FAX:+82-54-285-8543

 

CHEGIM WELDING CO., LTD.

42-499, IHYEON-DONG, SEO-GU, DAEGU, KOREA

TEL:+82-53-250-0600  FAX:+82-53-256-8117

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

POSCO(174611-0000741)

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

Overseas Office

NETHERLANDS

HYUNDAI WELDING EUROPE, ROTTERDAM

COLUMBUSSTRAAT 25 / HARBOUMO, 2769 3165 AC ROTERDAM-ALBRANDSWAARD

TEL:+31-10-4945788 FAX:+31-10-4945778

 

TURKEY

HYUNDAI WELDING TURKEY, ISTANBUL

SAHIL YOLU CADDESI DENIZCILER LS MERKEZI NO. 25 /31/ TUZLA-ISTANBUL, TURKEY

TEL:+90-216-494-4740 FAX:+90-216-493-5527

 

JAPAN(TOKYO)

HYUNDAI WELDING JAPAN CO., LTD. (TOKYO)

8TH FL., YURAKUCHO DENKI BLDG., 1-7-1, YURAKUCHO, CHITODA-KU, TOKYO, JAPAN

TEL:+81-3-5220-3529 FAX:+81-3-5220-3549

 

CHINA(SHANGHAI)

HYUNDAI WELDING CO., LTD.(SHANGHAI OFFICE)

RM. D805, SHANGAHI EVERBRIGHT EXHIBITION CENTER, CAO BAO ROAD, SHANGHAI, CHINA

TEL:+86-021-6432-5920 FAX:+86-021-6408-2554

 

INDIA(MUMBAI)

MUMBAI OFFICE

5/7, SAMARTH NAGAR, CHUNABHATTI(EAST), MUMBAI-400 022 INDIA

TEL:+91-98204-77953

 

VIETNAM

HYUNDAI WELDING VIETNAM, HANOI

RM. 103B, BLDG., 14-16, HAM LONG STREET PHAN CHU TINH WARD, HOAN KIEM DISTRICT HANOI, VIETNAM

TEL:+84-903-2919 FAX:+84-4-799-301

 

THAILAND

HYUNDAI WELDING THAILAND, BANGKOK

REGUS Q HOUSE LUMPINI CENTER, 1, SOUTH SATHOM ROAD, 27/F., TUNGMAHAMEK, SATHORN, BANGKOK 10120

TEL:+66-934-3234

 

SINGAPORE

HYUNDAI WELDING(S'PORE) PTE LTD.

21 JALAN BUROH #04-02 LOGISTICS 21, SINGAPORE 619478

TEL:+65-6863-3218 FAX:+65-6863-3225

 

UNITED STATE

HYUNDAI WELDING PRODUCTS

215, SATELLITE BOULEVARD SUITE 300, ATALNTA, GA 30024 USA

TEL:+1-770-614-7577 FAX:+1-770-614-6636

Subsidiary

HYUNDAI WELDING(S'PORE) PTE LTD.

(100.0% held by the subject company)

 

HYUNDAI WELDING(MALAYSIA) PTE LTD.

(100.0% held by the subject company)

 

HYUNDAI WELDING PRODUCTS(USA)

(100.0% held by the subject company)

 

SUPERTECH METAL(KONSAN) CO., LTD.(CHINA)

(100.0% held by the subject company)

 

HYUNDAI WELDING JAPAN CO., LTD.

(100.0% held by the subject company)

 

HYUNDAIWELDING VINA CO., LTD.

Cooperative Enterprise

-Insured Company

HYUNDAI MARINE & FIRE INSURANCE CO., LTD.(110111-0035893)

 

 

Sales by Region

(Activity & Markets)

 

The Subject exports to Europe, Asia and North America.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.52.21

UK Pound

1

Rs.84.00

Euro

1

Rs.67.75

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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.