MIRA INFORM REPORT

 

 

Report Date :

13.02.2013

 

IDENTIFICATION DETAILS

 

Name :

DAIREN CHEMICAL CORPORATION

 

 

Registered Office :

No.301, Songkiang Road, 7th Fl., Taipei

 

 

Country :

Taiwan

 

 

Date of Incorporation :

30.06.1979

 

 

Com. Reg. No.:

12233428

 

 

Legal Form :

Joint Stock Company

 

 

Line of Business :

Manufacturing and sales of chemicals

 

 

No. of Employees :

About 1,000 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 – June 30th, 2012

 

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

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. In keeping with this trend, some large, state-owned banks and industrial firms have been privatized. 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 1.9%, due primarily to a 20% year-on-year decline in exports. In 2010 GDP grew 10.9%, as exports returned to the level of previous years, and in 2011, grew 5.2%. However, 2012 growth will likely be less, according to most forecasters, 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 so far Taiwan has been excluded from this greater economic integration largely because of its diplomatic status with the exception of the landmark Economic Cooperation Framework Agreement (ECFA) signed with China in June 2010. The MA administration has said that the ECFA will serve as a stepping stone toward trade pacts with other regional partners, and negotiations on a deal with Singapore began this year. Follow-on components of ECFA, including deals on trade in goods, services, and investment, have yet to be completed. 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 10.9% of the island's total population as of 2011. The island runs a large trade surplus, and its foreign reserves are the world's fourth largest, behind China, Japan, and Russia. Since 2005 China has overtaken 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. 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:

Dairen Chemical Corporation

Supplied Name:

DAIREN CHEMICAL CORPORATION

Trading Address:

No.301, Songkiang Road, 9th Floor, Taipei Taiwan R.O.C.

Supplied Address:

No. 301, Songkiang Road, 9th Floor, Taipei

Telephone Number:

+886-2-7743-1500

Fax Number:

+886-2-2509-9619

E-mail:

service@dcc.com.tw

Website:

www.dcc.com.tw 

Notes: The exact address is as above.

 

 

Credit Summary

 

Credit Opinion:

Business connections are permissible.

 

 

Company Identification Details

 

Registered Name:

Dairen Chemical Corporation

Registered Address:

No.301, Songkiang Road, 7th Fl., Taipei Taiwan R.O.C.

Date of Foundation:

1979-6-30

Registration Number:

12233428

Registry:

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

Registered Capital:

NTD 1,415,015,390 (USD 48,110,523.26)

(As of 2012.09, 1 NTD = 0.034 USD)

Paid-up Capital:

NTD 1,415,015,390 (USD 48,110,523.26)

Legal Representatives:

Shuhong Lin

Legal Form:

Joint Stock Company

Principal Activities:

Manufacturing and sales of chemicals

Staff:

About 1,000 Employees

Listed at Stock Exchange:

No

Date of Last Annual Return:

2010-6-29

 

 

History

 

Subject was incorporated on 1979-6-30 with registered number 12233428 as Joint Stock Company in Taiwan.

 

Awards

Year

Awards

2008

Blue chip importer and exporter

2009

Blue chip importer and exporter

2010

Blue chip importer and exporter

 

Standard of Blue chip importer and exporter

 

Unit: USD

Year

Amount

2008

19,000,000

2009

15,000,000

2010

20,000,000

 

 

Shareholders

 

Name

Subscription Shares

Shuhong Lin

1,049,407         

 

Qingyuan Huang

 

3,782,286

 

Xinyi Zheng

2,147,927

Heqing Huang

2,260,190

Longxing Liao

1,400,924

Wanzhi Zheng

11,793

Qiongyu Liao

662,320

Chang Chun Petro Chemical Co., Ltd.

56,849,844

Taichang Huangtang

2,536,354

Tianran Huang

592,214

Xiandong Lin

1,556,428

Xianzhang Chen

459,851

Zheng Zheng

1,414,933

Hedong Huang

2,249,878

Limin Huang

290,973

Hezhou Huang

2,247,890

Anxian Lu

94,869

 

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

 

 

Subsidiaries & Branches

 

Factories

1

Name

Mailiao Factory

Address

No.25 Formosa Industrial Park, Sansheng Village, Mailiao Township, Yunlin County

Registration Number

70760067

Date of Registration

1999-12-27

Telephone Number

+886-5-681-2201

Fax Number

+886-5-681-2212

Status

Live Company

Manager Name

Xianzhang Chen

Date of Last Annual Return

2002-5-7

2

Name

Ta-She Factory

Address

1-3 Hsing-Kung Road Ta-She Industrial Zone 815 Kaohsiung, Taiwan

Telephone Number

+886-7-351-4151

Fax Number

+886-7-351-4090

3

Name

Ta-Fa Factory

Address

No.19-2, Huaxi Rd., Daliao Dist., Kaohsiung City 831, Taiwan (R.O.C.)

Telephone Number

+886-7-788-1165

Fax Number

+886-7-787-1710

 

Subsidiaries

1

Name

Dairen Chemical (M) Sdn. Bhd.

Address

PLO 18, Tanjung Langsat Industrial Estate, Mukim Sg. Tiram, 81700 Pasir Gudang, Johor, Malaysia

Telephone Number

+60-7-256-5800

Fax Number

+60-7-256-5799

2

Name

Dairen Chemical (Jiangsu) Co., Ltd.

Address

No.1 Dalian Road, Yangzhou Chemical Industry Park,211900 Yangzhou, Jiangsu, China

Telephone Number

+86-514-8326-8888

Fax Number

+86-514-8329-8855

Related Companies

1

Name

Chang Chun Plastics Co., Ltd.

Address

No.301 Songkiang Road, 7th Floor, Taipei 104 Taiwan

2

Name

Chang Chun Petrochemical Co., Ltd.

Address

No.301 Songkiang Road, 7th Floor, Taipei 104 Taiwan

3

Name

Nan Pao Resins Chemical Co., Ltd.

Address

12, Nan Hai Village, Shee Kang Shang, Tainan, Taiwan, R.O.C

 

Personnel Information

 

Core Management

Directors

1

Name

Shuhong Lin

Position

Board Director

2

Name

Qingyuan Huang

Position

Vice Chairman of the Board of Directors

3

Name

Xinyi Zheng

Position

Managing Director

4

Name

Heqing Huang

Position

Managing Director

Date of Appointment

1994-3-19

5

Name

Longxing Liao

Position

Managing Director

6

Name

Wanzhi Zheng

Position

Director

7

Name

Qiongyu Liao

Position

Director

8

Name

Rongzong Chen

Position

Director

9

Name

Taichang Huangtang

Position

Director

10

Name

Tianran Huang

Position

Director

11

Name

Xiandong Lin

Position

Director

12

Name

Xianzhang Chen

Position

Director

Date of Appointment

1970-1-24

13

Name

Zheng Zheng

Position

Director

14

Name

Hedong Huang

Position

Director

15

Name

Limin Huang

Position

Director

16

Name

Shiguang Su

Position

Supervisor

17

Name

Hezhou Huang

Position

Supervisor

18

Name

Jinjun Cai

Position

Supervisor

19

Name

Kunyuan Huang

Position

Supervisor

20

Name

Anxian Lu

Position

Supervisor

 

Personnel Structure

Total Employees

About 1,000 Employees

 

 

Operation Information

 

Offices & Factories

 

Headquarters

Add

No.301, Songkiang Road, 9th Floor, Taipei Taiwan R.O.C.

 

Production Information

l         Subject is engaged in manufacturing of chemicals.

l         Subject has factories in Taiwan, mainland China, and Malaysia for production.

l         The information about factories as follows for reference:

Factory

Area

Mailiao Factory, Taiwan

84,459 square meters

Ta-She Factory, Taiwan

42,180 square meters

Ta-Fa Factory, Taiwan

129,151 square meters

Malaysia Factory

121,532 square meters

Mainland China Factory

204,000 square meters

l         Subject’s production capacities as follows for reference:

Product

Annual Capacity

EVA Emulsion

About 330,000 MT

VAE Powder

About 52,000 MT

EVCL(EVA-VC / EVCL)

About 11,000 MT

Tetrahydrofuran

About 289,000 MT

1,4-Butanediol

About 256,000 MT

2-Methyl-1,3-Propanediol

About 51,200 MT

n-Propanol

About 25,600 MT

iso-Butanol

About 25,600 MT

AMPO

About 500 MT

Polyteramethylene-Ether-Glycol

About 170,000 MT

Vinyl Acetate

About 650,000 MT

Ethyl Acetate

About 30,000 MT

Liquefied Carbon Dioxide

About 28,000 MT

Allyl Alcohol

About 455,000 MT

Nitrogen

About 35,000 MT

 

Purchase Information

l         The registered activities of subject:

Business Code

Details

--

Manufacturing and sales of vinyl acetate, acetic ether, oxygen, nitrogen, ethylene, methylpropanediol, polytetramethylene ether glycol, carbon dioxide, propenyl, propyl alcohol, and hydrogen

--

Import and export of above products

C801010

Manufacturing of basic chemicals

C801020

Manufacturing of petrochemical materials

C801030

Manufacturing of precision chemical materials

C801040

Manufacturing of synthetic resin

C801050

Manufacturing of plastic raw material

C801060

Manufacturing of synthetic rubber

C801070

Manufacturing of high pressure gas

C802020

Manufacturing of artificial fiber

C802030

Manufacturing of coating and paint

C802120

Manufacturing of industrial additive

C901060

Manufacturing of fireproofing

C802120

Manufacturing of fertilizer

C802170

Manufacturing of toxic chemical substances

CC01010

Manufacturing of generator, transmission, and power distribution machinery

CC01050

Manufacturing of data storage and process equipment

CC01080

Manufacturing of electronic components

E599010

Piping engineering

I601010

Leasing industry

ZZ99999

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

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

l         It is introduced that subject imports technology from German and Japan.

 

Sales Information

l         Subject is engaged in sales of chemicals.

l         Subject’s sales regions include domestic market, Japan, South Korea, India, Southeast Asia, Australia, America, and Europe, etc.

l         It is introduced that subject has many cooperative agencies to sell their products in almost all over the world.

l         Subject’s factories obtained the certifications of ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007.

 

Major products sold

 

Product

1

Vinyl Acetate

2

Vinyl Acetate-Ethylene Copolymer Emulsion

3

Ethylene-Vinyl Acetate-Vinyl Chloride Emulsion

4

Ethylene-Vinyl Chloride Emulsion

5

Vinyl Acetate-Ethylene Redispersible Powder

6

Ethyl Acetate

7

Nitrogen

8

Liquefied Carbon Dioxide

9

Allyl Alcohol

10

1,4-Butanediol

11

2-Methyl- 1,3-Propanediol

12

n-Propanol

13

iso-Butanol

14

Alkoxylated 2-Methyl-1,3-Propanediol

15

Polytetramethylene-Ether-Glycol

16

Tetrahydrofuran

 

Import and export right:

Import right

Yes

Export right

Yes

 

 

Settlements

 

Purchase

Domestic Purchase (Taiwan and Mainland, China)

Product

Payment Terms

Proportion

Raw materials

COD, CBD, etc

100%

Foreign Purchase

Product

Payment Terms

Proportion

Raw materials

CBD, etc

100%

 

Sales

Domestic Markets (Taiwan and Mainland, China)

Product

Sales Terms

Proportion

Chemicals

COD, CBD, Credit Sales, etc

100%

 

Export

Product

Sales Terms

Proportion

Chemicals

CBD, etc

100%

Notes: Subject’s settlement for export is generally in USD

 

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. Xie declined to disclose its financials citing the grounds of company’s confidentiality; from other source we can not obtain the relevant information, either.

 

 

Bankers

 

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

 

 

Public Record

 

Mortgage

No chattel mortgage record of subject has been found within the recent 3 months.

 

Lawsuit

Up to date of reporting, no existing or latent litigation of the subject has been found.

 

 

Interview Details

 

Name

Mr. Xie

Department

Sales Department

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.53.96

UK Pound

1

Rs.84.49

Euro

1

Rs.72.23

 

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.