MIRA INFORM REPORT

 

 

Report Date :

17.08.2013

 

IDENTIFICATION DETAILS

 

Name :

FORMOSA HEAVY INDUSTRIES CORPORATION

 

 

Registered Office :

4Fl., No.201-20, Tun Hwa N. Rd., Taipei City

 

 

Country :

Taiwan

 

 

Date of Incorporation :

04.02.1991

 

 

Com. Reg. No.:

23986634

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sale of machinery, etc

 

 

No. of Employees :

About 1,300 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 :

Regular

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, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Taiwan

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

TAIWAN - ECONOMIC OVERVIEW

 

Taiwan has a dynamic capitalist economy with gradually decreasing government guidance of investment and foreign trade. Exports, led by electronics, machinery, and petrochemicals have provided the primary impetus for economic development. This heavy dependence on exports exposes the economy to fluctuations in world demand. In 2009, Taiwan's GDP contracted 1.8%, due primarily to a 13.1% year-on-year decline in exports. In 2010 GDP grew 10.7%, as exports returned to the level of previous years, and in 2011, grew 4.0%. In 2012, however, growth fell to 1.3%, because of softening global demand. Taiwan's diplomatic isolation, low birth rate, and rapidly aging population are major long-term challenges. Free trade agreements have proliferated in East Asia over the past several years, but except for the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010, so far Taiwan has been excluded from this greater economic integration in part because of its diplomatic status. Negotiations continue on such follow-on components of ECFA regarding trade in goods and services. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other key trade partners, which Taiwan subsequently launched with Singapore and New Zealand. Taiwan's Total Fertility rate of just over one child per woman is among the lowest in the world, raising the prospect of future labor shortages, falling domestic demand, and declining tax revenues. Taiwan's population is aging quickly, with the number of people over 65 accounting for 11.2% of the island's total population as of 2012. The island runs a large trade surplus largely because of its surplus with China, and its foreign reserves are the world's fifth largest, behind China, Japan, Saudi Arabia, and Russia. In 2006 China overtook the US to become Taiwan's second-largest source of imports after Japan. China is also the island's number one destination for foreign direct investment. Three financial memorandums of understanding, covering banking, securities, and insurance, took effect in mid-January 2010, opening the island to greater investments from the mainland's financial firms and institutional investors, and providing new opportunities for Taiwan financial firms to operate in China. In August 2012, Taiwan Central Bank signed a memorandum of understanding on cross-Strait currency settlement with its Chinese counterpart. The MOU allows for the direct settlement of Chinese RMB and the New Taiwan dollar across the Strait, which could help develop Taiwan into a local RMB hub. Closer economic links with the mainland bring greater opportunities for the Taiwan economy, but also poses new challenges as the island becomes more economically dependent on China while political differences remain unresolved.

Source : CIA


Contact Points

 

Company Name:

Formosa Heavy Industries Corporation

Supplied Name:

FORMOSA HEAVY INDUSTRIES

Trading Address:

4Fl., No.201-20, Tun Hwa N. Rd., Taipei City, Taiwan, R.O.C.

Supplied Address:

100, Swei-Kuan Road, Jen-Wu Kaohsiung 814

Telephone Number:

+886-2-2717-8148

Fax Number:

+886-2-2713-5519

E-mail:

sales-fhi@fpc.com.tw

Notes: The exact name and address are as above.

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

Company Identification Details

 

Registered Name:

Formosa Heavy Industries Corporation

Registered Address:

4Fl., No.201-20, Tun Hwa N. Rd., Taipei City, Taiwan, R.O.C.

Date of Foundation:

1991-2-4

Registration Number:

23986634

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 15,302,867,370 (USD 520,297,491)

(As of 2013.08, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 15,302,867,370 (USD 520,297,491)

Legal Representatives:

Zhicun Li

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sale of machinery, etc

Staff:

About 1,300 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2013-7-23

 

History

Subject was incorporated on 1991-2-4 with registered number 23986634 as Joint Stock Company in Taiwan.

 

Shareholders

 

Name

Subscription Shares

Formosa Chemicals & Fibre Corp.

503,629,141     

Formosa Petrochemical Corporation

19,305,253

Nan Ya Plastics Corporation

503,629,141

Formosa Plastics Corporation

503,723,202

The information above is that of subject’s major shareholders.

 

Subsidiaries & Branches

 

Factories

1

Name:

Formosa Heavy Industries Corporation Mai Liao Factory

Address:

No.3, Formosa Plastic Group Industrial Zone, Mai-Liao Township, Yunlin County, Taiwan, R.O.C.

Tel:

+886-5-681-6021

Fax:

+886-5-681-2043

Date of Foundation:

1994-2-24

Date of Registration:

1996-2-12

Factory Registration Number:

99653673

Factory Manager:

Chongfa Hong

Status:

In Production

Date of Last Annual Return:

2008-1-31

2

Name:

Formosa Heavy Industries Corporation Gear Factory

Address:

No.281, Fengren Road, Renwu District, Kaohsiung City, Taiwan, R.O.C.

Date of Foundation:

1990-12-31

Date of Registration:

1990-12-31

Factory Registration Number:

99665253

Factory Manager:

Chongfa Hong

Status:

In Production

Date of Last Annual Return:

2011-2-10

3

Name:

Formosa Heavy Industries Corporation Renwu Factory

Address:

No.281-1, Fengren Road, Renwu District, Kaohsiung City, Taiwan, R.O.C.

Date of Foundation:

1991-12-16

Date of Registration:

1992-11-19

Factory Registration Number:

99685057

Factory Manager:

Chongfa Hong

Status:

In Production

Date of Last Annual Return:

2011-2-8

4

Name:

Formosa Heavy Industries Corporation Renwu 2 Factory

Address:

100, Swei Kuan Rd., Jen-Wu, Kaohsiung, Taiwan, R.O.C.

Tel:

+886-7-371-1411

Fax:

+886-7-371-8445

Subsidiaries

1

Name

Formosa Heavy Industries (Ningbo) Co., Ltd.

Address:

Ningbo Industrial Park, Xiapu Town, Beilun District, Ningbo City, Zhejiang Province, China

Tel:

+86-574-8690-2999

Fax:

+86-574-8690-2907

2

Name

Formosa Heavy Industries (Guangzhou) Co., Ltd.

Address:

Jiaoxin Village, Zhijing Town, Baiyun District, Guangzhou City, Guangdong Province, China

Tel:

+86-20-3641-3900

Note: We obtained subject’s subsidiaries’ information from public files.

 

Branch Companies

Name

Mailiao Branch

Address

No.1-1, Formosa Plastic Group Industrial Zone, Mai-Liao Township, Yunlin County, Taiwan, R.O.C.

Registration Number

84896570

Date of Registration

1994-9-12

Status

Live Company

Manager Name

Chongfa Hong

Date of Last Annual Return

2007-7-12

 

Related Companies

1

Name

Formosa Chemicals & Fibre Corp.

Registered Address:

No. 359, Chungshan Road, Sec. 3, Chang Hwa City, Chang Hwa County, Taiwan, R.O.C.

Date of Foundation:

1964-3-5

Registration Number:

58650902

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 56,904,721,280 (USD 1,934,760,524)

(As of 2013.08, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 56,904,721,280 (USD 1,934,760,524)

Legal Representatives:

Wenyuan Wang

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

Yes; Stock Symbol: 1326

Date of Last Annual Return:

2013-7-8

2

Name

Formosa Petrochemical Corporation

Registered Address:

No.1-1, Formosa Plastic Group Industrial Zone, Mai-Liao Township, Yunlin County, Taiwan, R.O.C.

Date of Foundation:

1992-4-6

Registration Number:

86522210

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 95,259,596,520 (USD 3,238,826,282)

(As of 2013.08, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 95,259,596,520 (USD 3,238,826,282)

Legal Representatives:

Baolang Chen

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

Yes; Stock Symbol: 6505

Date of Last Annual Return:

2013-6-25

3

Name

Nan Ya Plastics Corporation

Registered Address:

No.35-1, Jhongshan 3rd Rd., Cianjhen District, Kaohsiung City 806, Taiwan (R.O.C.)

Date of Foundation:

1958-8-22

Registration Number:

75370905

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 78,522,986,030 (USD 2,669,781,525)

(As of 2013.08, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 78,522,986,030 (USD 2,669,781,525)

Legal Representatives:

Jiazhao Wu

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

Yes; Stock Symbol: 1303

Date of Last Annual Return:

2013-7-9

4

Name

Formosa Plastics Corporation

Registered Address:

No.39, Chung Shan 3rd Rd., Kaohsiung City, Taiwan, R.O.C.

Date of Foundation:

1954-11-5

Registration Number:

75708007

Registry:

Department of Commerce, Ministry of Economic Affairs, R.O.C.

Registered Capital:

NTD 63,657,407,810 (USD 2,164,351,866)

(As of 2013.08, 1 NTD = 0.0340 USD)

Paid-up Capital:

NTD 63,657,407,810 (USD 2,164,351,866)

Legal Representatives:

Zhicun Li

Legal Form:

Joint Stock Company

Listed at Stock Exchange:

Yes; Stock Symbol: 1301

Date of Last Annual Return:

2013-8-6

 

Personnel Information

Core Management

 

Directors

1

Name

Zhicun Li

Position

Board Chairman

2

Name

Wenyuan Wang

Position

Director

3

Name

Wenchao Wang

Position

Director

4

Name

Jiazhao Wu

Position

Director

5

Name

Jiannan Lin

Position

Director

6

Name

Guoxiong Wu

Position

Director/ Manager

Date of Appointment

2003-11-4

7

Name

Chongfa Hong

Position

Director/ Manager

Date of Appointment

1999-6-21

8

Name

Shengguan Lin

Position

Supervisor

 

Personnel Structure

 

Total Employees

About 1,300 Employees

 

Operation Information

Offices & Factories

 

 

Headquarters

Add

4Fl., No.201-20, Tun Hwa N. Rd., Taipei City, Taiwan, R.O.C.

 

Production Information

 

l  Subject is engaged in manufacturing of machinery, etc.

l  It is introduced that subject has factories in Taiwan for production and the total area is about 128,800 square meters.

l  Subject obtained the certifications of ISO 9001, ISO 9002 and OHSAS 18001.

 

Purchase Information

 

l  The registered activities of subject:

Business Code

Details

--

Design, manufacturing and sale of chemical machine, plastic machine, fiber industrial equipment, public utility (boiler, cogeneration power equipment, water treatment equipment, cooling tower) automatic conveying equipment (automated storage, mechanical parking lot), pollution-prevention equipment and other automated production equipment

--

Design, manufacturing and sale of all kinds of transmission gear, gear reducer, rubber product (rubber roller, back boxing), metal heat treatment equipment, water treatment equipment, garbage disposal equipment, incineration equipment

--

Installation of garbage furnace, waste incinerator, cogeneration power station and power station

CC01010

Manufacturing of generator, transmission machine, and distribution machine

EZ02010

Lifting engineering business

EZ07010

Drilling engineering business

E603100

Welding engineering business

CD01020

Manufacturing of railway vehicles and its components

CD01990

Manufacturing of other transport machine (manufacturing of tank-trailer and its tanker)

CA02010

Manufacturing of metallic structures and components

C901050

Manufacturing of cement and concrete product

C901060

Manufacturing of fireproof material

CA04010

Surface treatment industry

E903010

Anticorrosive and rustproof engineering business

ZZ99999

Besides licensed business, all other business items those are not banned or restricted.

 

l  The raw materials and components for production are purchased from both home and abroad.

l  It is introduced that subject import technology from abroad and the detail information is as follows for reference.

Product

Technology Transfer from the Company

Co-gen Boiler

Foster Wheeler, Canada

 Alstom Power (CE), USA

Utility Boiler

Alstom Power (CE), USA

 Foster Wheeler, USA

Condenser, HP/LP Heater & De-aerator

Alstom Power Heat Exchange, France

Gear

Renk Ag, Germany

Rubber Lining

KCH, Germany

 Fuji Resin, Japan

Hard Chrome Plating

Hartchrom A.G., Switzerland

 

l  Subject also cooperates with foreign companies to develop new products and technology and we obtained some information as follows for reference.

Product

Technical Cooperation Company

Cooling Tower

Marley, USA

GEA/TDT, USA

Automated Storage and Retrieval System

H. K. Systems, USA

Kasto, Germany

Robo Tech, Austria

Danaher Motion (NDC), Sweden

 

Sales Information

l  Subject is engaged in sale of machinery, etc.

l  Subject’s sales regions include Taiwan domestic market, Japan, USA and Southeast Asia.

l  Subject’s automated storage and retrieval system is applied to the industry of rubber, fiber, electronic, and food, etc.

 

Major Products and Services

 

Product and Service

1

Oil Refinery & Petrochemical Process Equipment

2

Plastics & Fiber Processing Equipment

3

Transportation & Lifting for Heavy Equipment

4

Factory Automation and Distribution Center

5

Automatic Storage/Retrieval Machine

6

Cogeneration Plant Turnkey Project

7

Boiler and Related Equipment for Power Plant

8

Gear Reducer & Precision Gear

9

Open/Girth Gear

10

Industrial Rubber Roll & Anticorrosion Lining

11

Metal Roll Hot Grinding & Electrolysis Polishing

 

Import and export right:

Import right

Yes

Export right

Yes

 

Settlements

 

Purchase

 

Domestic Purchase

Product

Terms

Proportion

Raw materials and components

Cash, T/T, Credit Sale, etc

100%

 

Foreign Purchase

Product

Terms

Proportion

Raw materials and components

L/C, T/T, etc

100%

Sales

Domestic Markets

Product

Terms

Proportion

Machinery

Cash, T/T, Credit Sale, etc

100%

 

Export

Product

Terms

Proportion

Machinery

L/C, T/T, etc

100%

 

Financial Information

 

Subject has no obligations to disclose its financial statements to the third party according to the relevant policy in Taiwan and the only source from which we can obtain the information is the subject itself.

Subject’s relevant staff Mr. Wang declined to disclose its financials citing the grounds of company’s confidentiality; from other source we found subject’s some financial figures for reference.

Unit: USD

 

Revenue

2012

512,816,000

2011

446,484,000

2010

437,866,700

 

Bankers

 

Subject declined to disclose its bank details; from other source we cannot obtain the relevant information, either.

 

Public Record

Mortgage

 

Case Type:

Chattel Mortgage

Certificate No.:

076004

Debtor Name:

Formosa Heavy Industries Corporation

Document Number:

09205113050

Date of Registration:

2003-5-20

Date of Alteration:

--

Status:

Pay off

 

Lawsuit

 

Trial Number:

2006, Beijiansheng, 243

Date of Trial:

2006-10-4

Reason:

Confirmation of the litigation costs

 

Interview Details

 

Name

Mr. Wang

Department

Sales Department

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.82

UK Pound

1

Rs.96.57

Euro

1

Rs.82.45

 

 

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.