MIRA INFORM REPORT

 

 

Report Date :

21.09.2012

 

 

IDENTIFICATION DETAILS

 

Name :

BASF COMPANY LTD.

 

 

Registered Office :

373-15, Hwachi-dong, Yeosu-si, Jeollanam-do, Korea, Zip Code 555-280

 

 

Country :

South korea

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

15.12.1988

 

 

Com. Reg. No.:

417-81-04858

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Basic Organic Petrochemicals

 

 

No. of Employees :

932 employees

 

 

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

 


 

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

 

Company Name

BASF COMPANY LTD.

(Korean Company Name : “한국바스프()”)

Registered Address

373-15, Hwachi-dong, Yeosu-si, Jeollanam-do, Korea

Zip Code

555-280

Tel

+82-61-680-7000

Fax

+82-61-684-7260

E-mail

nari.kim@partners.basf.com

Website

www.basf.co.kr;www.basf-korea.co.kr

Trading Address

14th Fl, Korea Chamber of Commerce & Industry, 45, Namdaemunno 4-ga, Jung-gu, Seoul, Korea

Tel

+82-2-3707-3100

Fax

+82-2-3707-3122

Other Address-Ulsan Site-Plastics Factory

472-1, Sanggae-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-279-5800

Fax

+82-52-272-4801

Other Address-Ulsan Site-Plastics Factory

569-30, Yongyeon-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-279-9500

Fax

+82-52-279-9501

Other Address-Ansan Factory

607B-22, Banwol Industrial Complex, 631-3, Seonggok-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-599-7513

Fax

+82-31-599-7506

Other Address-Hwaseong Factory

870, Yeocheon-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-278-2000

Fax

+82-52-278-2001

Type

Export/Import

Industry

Manufacture of Basic Organic Petrochemicals

  Main Business

Styrofoam, L-Lysine, EPS, PS, ABS, MPI, TPI

Established (mm/dd/yyyy)

12/15/1988

 

The Subject owns the premises of registered address/factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Polyurethane resins(13111061)

Sell

Polystyrene foam(13111308)

Sell

Acrylonitrile butadiene styrene resin(13111004)

Sell

Chemicals including Bio Chemicals and Gas Materials(12000000)

Sell

Organic derivatives and substituted compounds(12352100)

Sell

Surfactants(12161900)

Sell

Inorganic compounds(12352300)

Sell

Pigments(12171600)

Sell

Other adhesives and sealants(31201600)

Sell

Drugs and Pharmaceutical Products(51000000)

Sell

Plasticizers(12162000)

Sell

Inorganic compounds(12352300)

Sell

Organic peroxides(12352120)

 

 

CEO’s

 

Name

Shin Woo-Sung

Address

Suite 12-1306, 844, Sindang-dong, Jung-gu, Seoul, Korea

Date of Birth

09/12/1957

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

481,729,000,000

Employees

932

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Korea Exchange Bank –Sales 1 Division

Corporate Registered No.

110111-0600860

Business Registered No.

417-81-04858

Permit & Licenses

05/1999 ISO 9001

 

Int’l Trade No.: 429296

Shareholder Position

Name

Shares

%

BASF BETEILIGUNGSGESELLSCHAFT GMBH (GERMANY)

92,930,000

100.00

TOTAL

92,930,000

100.00

Company History

1954 Entered Korea as FOHAG(Far East Trading Company)

1980 Established as Hyosung BASF

1982 Established BASF KOREA CO., LTD.

12/1988 Established HANYANG BASF URETHANE CO., LTD.

12/1997 Changed company name to BASF URETHANE KOREA CO., LTD.

03/1998 Changed company name to BASF KOREA STILENIX CO., LTD.

05/1998 Acquired Lysine Business Division from Daesang Corporation

12/1998 Acquired Polyol Business Division from Dong Sung Chemical Co., Ltd.

12/1998 Incorporated as BASF KOREA CO., LTD with the acquisition of BASF URETHANE KOREA CO., LTD., BASF KOREA STILENIX CO., LTD. and BASF KOREA CO., LTD.

11/2000 Awarded US$500 Million Export Top Prize

06/2001 Acquired SK Evertech's SM Factory

10/2001 Increased capital to 404,650,000,000 KRW from 354,650,000,000 KRW

05/2003 Acquired Engineering Plastic Business Division from Honeywell

04/2005 Acquired BASF AGRO KOREA CO., LTD.

10/2006 Acquired the operation part of BASF Resin Co., Ltd.

07/31/2007 Increased the authorized shares to 94,930,000 shares from 80,930,000 KRW

01/2008 Sold Gunsan Factory(Lysine: 228, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea) to PAIKKWANG INDUSTRIAL CO., LTD.(110111-0003709) at USD27,000,000.

05/21/2009 increased capital to 464,650,000,000 KRW from 404,650,000,000 KRW

08/03/2009 Decided to sell Ulsan SM Factory to SK ENERGY CO., LTD.(110111-3710385)

02/01/2010 Acquired CIBA SPECIALTY CHEMICALS KOREA LTD.(110111-0714406) and DAIHAN SWISS CHEMICAL CORP.(110111-0307325)

01/01/2011 Split off KS Divisions, and transferred to STYROLUTION KOREA LTD.(230111-0148328)

01/01/2011 Acquired COGNIS KOEA LTD.(110111-2865090)

08/31/2012 Increased the authorized shares to 100,930,000 shares from 94,930,000 shares

09/14/21012 increased capital to 481,729,000,000 KRW from 464,650,000,000 KRW

 

 

 

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Shin Woo-Sung

Male

Korean

03/02/2009

Director

Mr.

Georg Gotbrat

Male

German

08/01/2007

Director

Mr.

Saoriul Rikedu Borg

Male

German

11/01/2009

Director

Mr.

Jacob Nielson

Male

Swedish

05/01/2011

Auditor

Mr.

Wolfro Light

Male

German

05/01/2011

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

2011

1,981,901,124,110

1,314,309,031,536

228,920,128,968

2010

2,905,643,816,960

1,328,755,510,275

277,702,346,311

2009

2,182,467,001,023

1,131,492,742,826

252,650,621,415

2008

2,409,606,875,106

1,005,708,769,659

90,382,545,153

2007

2,154,041,355,519

1,154,047,696,907

179,289,618,386

2006

1,908,768,117,693

1,236,191,744,609

169,881,499,330

2005

2,088,248,977,659

1,326,167,222,613

128,075,379,460

2004

1,960,457,253,117

1,454,917,869,412

47,803,170,535

2003

1,383,330,951,764

1,461,689,186,845

(-)24,016,453,546

 

Financial Description

 

Authorized Capital(KRW)

504,650,000,000

Paid-Up Capital(KRW)

481,729,000,000

Total Issues Shares

96,345,800

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Total Assets

1,314,309,031,536

1,328,755,510,275

1,131,492,742,826

Current Assets

909,231,830,642

837,893,786,409

624,467,263,771

-Quick Assets

751,182,225,062

621,441,550,163

490,761,618,368

-Inventories

158,049,605,580

216,452,236,246

133,705,645,403

Fixed Assets

405,077,200,894

490,861,723,866

507,025,479,055

-Investment

31,850,827,515

57,371,472,107

64,510,601,474

-Tangibles

347,097,818,824

401,212,097,817

410,360,929,883

-Intangibles

10,971,470,483

13,978,047,361

12,705,739,847

-Others

15,157,084,072

18,300,106,581

19,448,207,851

Total Liabilities

460,653,502,597

455,130,792,650

336,326,111,529

Current Liabilities

436,177,268,194

444,467,855,649

313,578,736,480

Fixed Liabilities

24,476,234,403

10,662,937,001

22,747,375,049

Capital Stock

464,650,000,000

464,650,000,000

464,650,000,000

Capital Surplus

57,935,544,012

54,587,882,666

24,498,419,649

Profit Surplus

330,402,565,927

353,939,114,959

305,919,151,648

Capital Adjustment

667,419,000

447,720,000

99,060,000

Total Equity

853,655,528,939

873,624,717,625

795,166,631,297

Liab. & Shareholder’s Equity

1,314,309,031,536

1,328,755,510,275

1,131,492,742,826

 

Current Liabilities

436,177,268,194

444,467,855,649

313,578,736,480

Trade Payables

242,470,695,355

362,230,593,162

278,975,971,331

Account Payables

116,214,759,233

11,943,842,974

10,930,641,163

Advance Receipts

446,362,714

1,419,063,408

1,962,034,623

Withholdings

1,310,981,636

1,612,915,431

826,209,193

Accrued Expenses

24,951,556,559

28,735,487,443

20,883,880,170

Accrued Income Tax

45,104,155,333

37,816,381,245

-

Derivatives

5,477,255,014

709,571,986

-

Deferred Income Tax

201,502,350

-

 

Fixed Liabilities

24,476,234,403

10,662,937,001

22,747,375,049

Long-Term Borrowings

15,986,870,000

-

 

Provision for Recovery

-

500,200,001

5,890,796,998

Other Provisions

5,807,530,000

8,582,595,000

6,591,705,000

Provision for Severance & Retirement

23,631,657,139

23,016,040,809

41,171,212,480

Leasehold Deposit Received

130,000,000

130,000,000

130,000,000

 

 

Income Statement

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Sales

1,981,901,124,110

2,905,643,816,960

2,182,467,001,023

Cost of Sold Goods

1,706,808,999,316

2,392,539,656,229

1,709,131,631,096

Gross Profit

275,092,124,794

513,104,160,731

473,335,369,927

Selling & Admin. Expenses

172,039,598,822

213,830,746,347

186,109,268,509

Operating Income

103,052,525,972

299,273,414,384

287,226,101,418

Non-Operating Income

252,726,394,423

117,270,505,685

119,076,603,225

Non-Operating Expenses

60,518,204,766

112,202,545,620

126,172,897,579

Income Before Taxes

295,260,715,629

304,341,374,449

280,129,807,064

Income Taxes Expenses

66,340,586,661

26,639,028,138

27,479,185,649

Net Income

228,920,128,968

277,702,346,311

252,650,621,415

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2011

As of 12/31/2010

As of 12/31/2009

Cash Flows from Operating

188,317,496,165

313,389,137,392

316,759,041,999

-Net Income

228,920,128,968

277,702,346,311

252,650,621,415

-Exp. without Cash Outflow

60,162,295,649

80,764,828,324

67,059,921,859

-Revenue without Cash Inflows

-177,893,546,952

-11,182,093,178

-23,913,912,030

-Changes in Asset/ & Liability

77,128,618,500

-33,895,944,065

20,962,410,755

Cash Flows from Investing

265,015,351,640

-40,775,653,144

-57,706,679,217

-Cash Inflow from Investing

317,884,392,187

15,523,951,271

17,182,425,235

-Cash Outflows for Investing

-52,869,040,547

-56,299,604,415

-74,889,104,452

Cash Flows from Financing

-236,118,634,000

-230,665,256,928

-173,065,950,000

-Cash Inflows from Financing

16,338,044,000

-

60,000,000,000

-Cash Outflows from Financing

-252,456,678,000

-230,665,256,928

-233,065,950,000

Increase/Decrease in Cash

217,214,213,805

41,948,227,320

85,986,412,782

Cash at the Beginning of Year

149,315,298,971

107,367,071,651

21,380,658,869

Cash at the End of Year

366,529,512,776

149,315,298,971

107,367,071,651

 

 

Products, Technologies, Services Description

 

Main Products & Services

-Thermoplastics Business

EPS, PS, ABS, SM, Engineering plastics production and sales

 

-Polyurethane Business

MDI, TDI, Polyol production and sales

 

-Chemicals & Performance Products Business

PolyTHK, BDO/THF, Fiber raw materials, Petrochemicals, Intermediates, Textile Chemicals, Leather Chemicals, Pigment & Dyestuff for industry, Specialty Chemicals, Acrylic Monomer & Polymer, Paper Chemicals

 

-Fine Chemicals Business

Animal Nutrition, Lysine Byproducts, Cosmetics, Pharmaceuticals, Food Ingredients, Aroma Chemicals for flavor and fragrance, Agro chemical products

 

 

Trade Partners & Competitors

 

Suppliers

BASF AKTIENGESELLSCHAFT(CATALYST)

HANWHA PETROCHEMICALS CO., LTD.(CHLORINE, NITRIC ACID & CAUSTIC SODA)

HUCHEMSFINECHEMICALCORPORATION(110111-2611906 : NITRIC ACID)

AIR LIQUIDE KOREA CO., LTD.(110111-1232216 : CARBON MONOXIDE, HYDROGEN)

HEIN CORPORATION(180111-0049915 : FORMALDEHYDE)

SAMYANG CHEMICAL CO., LTD.(110111-0568878 : FORMALDEHYDE)

SKC(ETHYLENE)

Customers

BASF AKTIENGESELLSCHAFT

BASF SOUTH EAST ASIA PTE. LTD.

Competitors

SAMSUNG TOTAL PETROCHEMICALS CO., LTD.

411-1, DOKGOT-RI, DAESAN-EUP, SEOSAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-660-6114 FAX:+82-41-681-4812

 

HONAM PETROCHEMICAL CORPORATION

11TH FL., LOTTE GWANAK TOWER, 395-67, SINDAEBANG 2-DONG, DONGJAK-GU, SEOUL, KOREA

TEL:+82-2-829-4114 FAX:+82-2-843-1010

 

SAM NAM PETROCHEMICAL CO., LTD.

4TH FL., SAMYANG CO. BLDG., 263, YEONJI-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-740-7450~1 FAX:+82-2-745-4225

 


 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

BASF SE

BASF SOUTH EAST ASIA PTE. LTD.

Subsidiary

CIBA SPECIALTY CHEMICALS KOREA LTD.(110111-0714406)

(100.0% held by the subject company)

 

DAIHAN SWISS CHEMICAL CORP.(110111-0307325)

(100.0% held by the subject company)

 

COGNIS KOEA LTD.(110111-2865090)

(100.0% held by the subject company)

Corporate Ownership

BASF SE

BETEILIGUNGSGESELLSCHAFT GMBH

Major Shareholders

BASF BETEILIGUNGSGESELLSCHAFT GMBH

CARL-BOSCH STRAßE 38, 67056 LUDWIGSHAFEN, GERMANY

TEL: 49-621-60-0 FAX: 49-621-60-42525

Cooperative Enterprise

-Technical Support & Engineering Support

MITSUBISHI CHEMICAL CORPORATION

BASF SE

 

 

Sales by Region

(Activity & Markets)

 

The Subject deals with the companies in Germany.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.34

UK Pound

1

Rs.87.91

Euro

1

Rs.70.57

 

 

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%)

 

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.