MIRA INFORM REPORT

 

 

Report Date :

01.04.2013

 

IDENTIFICATION DETAILS

 

Name :

POSCO CHEMTECH CO., LTD.

 

 

Registered Office :

1-143, Cheongnim-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea 790-836

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

13.05.1971

 

 

Legal Form :

Listed Company

 

 

Line of Business :

Manufacture of Other Refractory Ceramic Products

 

 

No. of Employees :

1,358

 

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 :

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 – 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

POSCO CHEMTECH CO., LTD.

(Ex. Company Name : POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(POSREC, “()포스렉”))

(Korean Company Name : “()포스코켐텍”)

Registered Address

1-143, Cheongnim-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Zip Code

790-836

Tel

+82-54-290-0114

Fax

+82-54-292-3417

E-mail

posrecweb@posrec.co.kr;think99@posrec.co.kr

Website

www.posrec.co.kr

Trading Address

1-143, Cheongnim-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-290-0114

Fax

+82-54-292-3417

Other Address-Gwangyang Office

1657-2, Taein-dong, Gwangyang-si, Jeollanam-do, Korea

Tel

+82-61-792-0610~1

Fax

+82-61-792-8560

Type

Export

Industry

Manufacture of Other Refractory Ceramic Products

  Main Business

Shaped Refractory, Unshaped Refractory, Clinkers

  Sub Business

Construction of Industrial Plants

Established (mm/dd/yyyy)

05/13/1971

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Refractory bricks(31371100)

Sell

Refractories(31370000)

 

 

CEO’s

 

Name

Kim Jin-Il

Date of Birth

02/01/1953

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

29,535,000,000

Employees

1,358

Formation

Listed Company(KOSDAQ : 003670) as of 10/31/2001

A Company of POSCO Group

Bank Details

Busan Bank-Pohang Branch

Citibank, Korea

Corporate Registered No.

174611-0001947

Business Registered No.

506-81-01452

Permit & Licenses

Int’l Trade No.: 553942

Shareholder Position

Name

Shares

%

POSCO(174611-0000741)

3,544,200

60.00

National Pension Service.(110171-0007134)

505,667

8.56

POSTECH(174631-0000129)

295,350

5.00

OTHERS

1,561,783

26.44

TOTAL

5,907,000

100.00

Company History

05/13/1971 Incorporated as POHANG Industrial Furnace Co., Ltd.

03/1987 Changed company name to Pohang Furnace Co., Ltd.

04/1993 Changed company name to Geoyang Furnace Co., Ltd.

12/1994 Acquired Samhwa Hwasung Co., Ltd., and changed company name to POSCO Furnace Equipment Co., Ltd.

04/2001 Changed company name to POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(POSREC)

03/19/2010 Changed company name to the present name

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education/Carer

President & CEO

Mr.

Kim Jin-Il

Korean

1953.02.01

Ex. Vice President of POSCO

Sr. Executive Director

Mr.

Lee Hee-Myung

Korean

1959.03

POSCO

Sr. Executive Director

Mr.

Lee Ki-Chang

Korean

1959.02

POSCO

Outside Director

Mr.

Nam In-Sik

Korean

1950.01.21

Vice President of Postech, Korea

Auditor

Mr.

Kang Dae-Hee

Korean

1955.11.26

Dankuk University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2012

1,292,356,397,163

533,401,758,480

78,553,652,845

(*)2011

1,186,622,662,490

479,615,361,821

92,391,379,400

(*)2010

756,053,098,966

371,159,500,484

57,190,514,740

2009

574,400,917,130

257,455,235,344

33,089,195,425

2008

446,939,291,376

233,414,681,198

25,180,724,257

2007

290,199,319,851

174,308,257,280

16,899,406,721

2006

268,957,364,912

155,513,726,878

14,297,348,736

2005

250,179,952,576

146,321,713,013

16,607,215,385

(*)Figures are based on the K-IFRS Accounting System.

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

29,535,000,000

Total Issued Shares

5,907,000

 

 

Balance Sheet

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Total Assets

533,401,758,480

479,615,361,821

371,159,500,484

Current Assets

361,330,587,059

367,947,745,964

293,584,756,569

Cash & Cash Equivalents

62,710,426,259

55,629,308,660

39,256,659,954

Current Financial Instruments

73,267,456,950

81,244,866,888

51,894,692,247

Trade Receivables

146,192,819,188

146,645,239,093

118,057,528,879

Inventories

78,314,716,786

75,765,947,396

83,057,810,734

Other Current Assets

845,167,876

8,662,383,927

1,318,064,755

Non-Current Assets

172,071,171,421

111,667,615,857

77,574,743,915

Tangibles

94,209,446,359

85,749,594,041

58,266,069,772

Intangibles

7,491,836,574

5,559,472,309

4,008,141,017

Investment_Subsidiaries

61,610,607,452

12,359,767,749

9,029,767,771

Other Financial Assets

8,504,043,570

6,757,571,487

4,659,498,720

Investment_Real Estates

223,104,466

255,203,310

255,203,310

Other Non-Current Assets

32,133,000

986,006,961

1,356,063,325

Total Liabilities

134,297,734,078

152,416,420,808

128,254,143,364

Current Liabilities

120,005,589,194

137,626,546,112

110,364,216,385

Trade Payables

84,936,122,418

92,422,344,150

77,907,798,361

Debentures

 

50,000,000

 

Other Current Financial Debts

15,948,048,448

18,131,273,067

11,939,977,748

Accrued Income Tax

12,068,158,605

19,145,493,367

10,980,675,803

Provisions

853,038,379

 

 

Other Current Liabilities

6,200,221,344

7,877,435,528

9,535,764,473

Non-Current Liabilities

14,292,144,884

14,789,874,696

17,889,926,979

Long-Term Borrowings

50,000,000

 

50,000,000

Provision for Severance & Retirement

4,678,510,653

4,404,415,953

12,026,565,348

Deferred Income Tax Credit

6,425,427,417

7,518,681,266

5,813,361,631

Other Finance Liabilities

3,038,206,814

2,866,777,477

 

Other Provsions

100,000,000

 

 

Capital Stock

29,535,000,000

29,535,000,000

29,535,000,000

Profit Surplus

23,650,207,758

23,650,207,758

23,650,207,758

Capital Surplus

345,918,816,644

274,013,733,255

189,720,149,362

Total Equity

399,104,024,402

327,198,941,013

242,905,357,120

Liab. & Shareholder’s Equity

533,401,758,480

479,615,361,821

371,159,500,484

 

Income Statement

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Sales

1,292,356,397,163

1,186,622,662,490

756,053,098,966

Cost of Sold Goods

1,140,194,835,593

1,015,051,985,792

644,831,650,243

Gross Profit

152,161,561,570

171,570,676,698

111,221,448,723

Admin. Expenses

54,178,929,759

46,208,994,943

34,447,402,733

Selling Expenses

4,579,889,462

4,925,207,591

4,966,666,539

Operating Income

93,402,742,349

120,436,474,164

71,807,379,451

Other Operating Income

3,361,655,919

2,145,154,005

1,338,142,628

Other Operating Expenses

2,321,293,207

5,516,817,413

3,254,205,742

Finance Income

7,469,155,800

5,874,183,536

5,143,930,462

Finance Expenses

1,449,613,708

1,529,558,975

775,496,187

Income Before Taxes

100,462,647,153

121,409,435,317

74,259,750,612

Income Taxes Expenses

21,908,994,308

29,018,055,917

17,069,235,872

Net Income

78,553,652,845

92,391,379,400

57,190,514,740

 

 

Cash Flows

 

Unit : Korean Won

As of 12/31/2012

As of 12/31/2011

As of 12/31/2010

Operating Activities Cash Flows

66,035,350,508

90,484,782,555

56,363,772,777

Cash Flows from Operating

90,344,969,316

104,780,546,624

62,271,299,474

Net Income

78,553,652,845

92,391,379,400

57,190,514,740

Adjustment

34,949,550,435

41,355,100,625

29,121,869,414

Changes in Asset/ & Liability

-23,158,233,964

-28,965,933,401

-24,041,084,680

Interests Received

4,978,387,108

4,055,799,476

3,078,273,837

Interests Paid

-87,796,984

-3,851,877

-59,507,747

Dividends Received

642,619,623

255,426,074

494,142,281

Income Taxes

-29,842,828,555

-18,603,137,742

-9,420,435,068

Cash Flows from Investing

-53,331,878,909

-68,172,148,282

-53,663,549,507

Cash Inflow from Investing

142,096,568,520

153,463,045,705

52,048,885,734

Cash Outflows for Investing

-195,428,447,429

-221,635,193,987

-105,712,435,241

Cash Flows from Financing

-5,622,354,000

-5,907,000,000

-4,430,250,000

Cash Inflows from Financing

3,287,014,884

 

 

Cash Outflows from Financing

-8,909,368,884

-5,907,000,000

-4,430,250,000

Increase/Decrease in Cash

7,081,117,599

16,405,634,273

-1,730,026,730

Cash at the Beginning of Year

55,629,308,660

39,256,659,954

40,986,686,684

Cash at the End of Year

62,710,426,259

55,629,308,660

39,256,659,954

 

Products, Technologies, Services Description

 

Main Products & Services

Manufacturing and selling of general refractories, building and repairing furnaces,  environmental business

 

Manufacturing Refractories

* Basic Refractories (135 excluding MgO-C Bricks)

* Clinkers (5 excluding SSMD)

* Unshaped Refractories (53 excluding Spray type)

* Acid, neutral and special Refractories

 

Maintenance work for Steel Mill Industrial Furnaces

* Repairing Blast Furnaces(Dismantling, blasting and building works)

* Designing and manufacturing various industrial furnaces

 

Engineering and manufacturing various industrial furnaces

* Furnaces for the still industry : Heating Furnaces, Heat   Treatment Furnaces

* Furnaces for non-ferrous metals : Melting Furnaces, Plating   Furnaces

* Furnaces for the ceramic industry : S/K, T/K,RHK, Super high   temperature Firing Furnaces

*Incinerators : Ash Melting Incinerators

 

Environment enhancement products

* SSEFREMA : Anti Red Tide chemicals and marine sediment improvement chemicals

* SUMAG : Acidic waste water neutralizer

* GUNMAG : Air environmental chemicals

* WATRAMAG : Water treatment additives

* Flue-gas desulfurization facilities : Flue-gas desulfurization facilities manufacturing and work

 

Fertilizers

* ALGAEMAG : Algae elimination additives (rivers, lakes)

* MAGVITA : Hydroxide dolomitic fertilizer

 

Inorganic additives

* Non-flammable additives, Ferrite

 

Brand Name : MgO-C

 

 

Trade Partners & Competitors

 

Customers

POSCO(174611-0000741)

Competitors

CHOSUN REFRACTORIES CO.,LTD.(201111-0000440)

DONGKUK REFRACTORIES & STEEL CO., LTD.(195511-0069249)

KOREA REFRACTORIES CO.,LTD.(184611-0000319)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

POSCO(174611-0000741)

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

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

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)

POSTEEL(110111-0344591)

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

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)

P&R CO., LTD.

UITRANS CO., LTD.(110111-3792309)

BASYS INDUSTRY CO. LTD.(110111-0954647)

UNIVERSAL STUDIOS RESORT DEVELOPMENT CORPORATION(134811-0167222)

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)

 

(*)The below companies has been newly joined as affiliated companies to POSCO GROUP in 2010.

POS ECO HOUSING CO., LTD.( 171711-0085893)

DAKOS CO., LTD.(131111-0246297)

MAPO HYBROAD PARKING CO., LTD.(110111-4250140)

GWANGYANG FSC CO., LTD.(204611-0031385)

POSPLATE CO., LTD.(204611-0031252)

POS CALCIUM CO., LTD.(171711-0086180)

(70.0% held by the subject company)

Joint Venture

YOUNGKU POCHEOL FURNACE EQUIPMENT CO., LTD.(CHINA)

(25.0% held by the subject company)

 

YONYEONG YOUNGWON POCHEOL FURNACE CO., LTD.(CHINA)

(35.0% held by the subject company)

 

JANGAHANG POHANG FURNACE EQUIPMENT CO., LTD.(CHINA)

(50.0% held by the subject company)

Subsidiary

POSCALCIUM COMPANY, LTD.(171711-0086180)

(86.87% held by the subject company)

 

PT.KRAKATAU POSCO CHEMTECH CALCINATION

(80.00% held by the subject company)

 

POSGREEN COMPANY, LTD(204611-0032466)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2012

2011

2010

Export

40,330

41,508

11,866

Domestic

1,252,026

1,145,115

744,187

Total

1,292,356

1,186,623

756,053

The Subject exports to China and Japan. It also imports from China.

 

 

Court Action

 

No.

 

 

News Clipping

 

--


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.39

UK Pound

1

Rs.82.32

Euro

1

Rs.69.54

 

 

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%)

 

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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.