MIRA INFORM REPORT

 

 

Report Date :

01.07.2013

 

IDENTIFICATION DETAILS

 

Name :

LAFARGE HALLA CEMENT CORPORATION

 

 

Registered Office :

225, Sangye-gil, Okgye-myeon, Gangneung-si, Gangwon-do, Korea 210-834

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2013

 

 

Date of Incorporation :

27.10.1998

 

 

Com. Reg. No.:

226-81-22191

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Cement

 

 

No. of Employees :

506

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow but 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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

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 is currently the world's 12th largest economy. 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. Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The incoming administration in 2013, following the December 2012 presidential election, is likely to face the challenges of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. 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

 

Basic

 

Company Name

LAFARGE HALLA CEMENT CORPORATION

Registered Address

280-1, Sangye-ri, Okgye-myeon, Gangneung-si, Gangwon-do, Korea

(New Address System : 225, Sangye-gil, Okgye-myeon, Gangneung-si, Gangwon-do, Korea)

Zip Code

210-834

Tel

+82-33-534-1000

Fax

+82-33-534-0716

E-mail

manjoon.lee@kr.lafargehalla.com;yongjin.park@kr.lafarge.com

Website

www.lafargehalla.com

Trading Address

4th Fl., Rosedale Officetel, 724, Suseo-dong, Gangnam-gu, Seoul, Korea

Tel

+82-2-6902-3200

Fax

+82-2-6902-3292

Other Address-Singi Factory

23, Anui-ri, Singi-myeon, Samcheok-si, Gangwon-do, Korea

Tel

+82-33-540-0312

Fax

+82-33-540-0319

Other Address-Gwangyang Factory

1659-3, Taein-dong, Gwangyang-si, Jeollanam-do, Korea

Tel

+82-61-792-8291

Fax

+82-61-792-8290

Other Address-Pohang Factory

140-10, Jangheung-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Tel

+82-54-285-1751~3

Fax

+82-54-285-1930

Other Address-Icheon Office

358-4, Huan-ri, Hobeop-myeon, Icheon-si, Gyeonggi-do, Korea

Tel

+82-31-632-3286

Fax

+82-31-632-3287

Other Address-Maepo Office

374-4, Noho-ri, Buyong-myeon, Cheongwon-gun, Chungcheongbuk-do, Korea

Tel

+82-43-269-2153

Fax

+82-43-269-2852

Other Address-Samho Office

1237-8, Sampo-ri, Samho-eup, Yeongam-gun, Jeollanam-do, Korea

Tel

+82-61-461-1415

Fax

+82-61-461-1692

Other Address-Janghang Branch

420-2, Sinchang-ri, Janghang-eup, Seocheon-gun, Chungcheongnam-do, Korea

Tel

+82-41-956-7235

Fax

+82-41-956-7237

Other Address-Uiwang Office

71-3, I-dong, Uiwang-si, Gyeonggi-do, Korea

Tel

+82-31-461-4288

Fax

+82-31-461-4971

Other Address-Eumseong Office

785-1, Pyeonggok 1-ri, Eumseong-eup, Eumseong-gun, Chungcheongbuk-do, Korea

Tel

+82-43-872-4695

Fax

+82-43-872-1937

Other Address-Jeju Office

1007, Sangdae-ri, Hallim-eub, Jeju-si, Jeju-do, Korea

Tel

+82-64-796-7270

Fax

+82-64-796-7290

Type

Export/Import

Industry

Manufacture of Cement

  Main Business

Cement, Clinker

Established (mm/dd/yyyy)

10/27/1998

The Subject owns the premises of registered HQ address, Singi Factory, Gwangyang Factory, Maepo Office and Samho Office.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Cement(30111601)

 

 

CEO’s

 

Name

Michel Puchercos

Address

Suite 401, 200-16, UN village-gil, Yongsan-gu, Seoul, Korea

Date of Birth

10/02/1957

Title

President & CEO

Sex

Male

Nationality

French

 

 

Profiles

 

Capital (KRW)

221,737,035,000

Employees

506

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Shinhan Bank

Korea Exchange Bank

Woori Bank

Corporate Registered No.

141111-0012331

Business Registered No.

226-81-22191

Permit & Licenses

11/2002 ISO 14001

 

Int’l Trade No.: 404486

Shareholder Position

Name

Shares

%

FINANCIERE LAFARGE

28,199,522

63.59

LAFARGE KOREA B.V

4,621,550

10.42

ARISEPT SAS

10,240,621

23.09

OTHERS

1,285,714

2.90

TOTAL

44,347,407

100.00

Company History

10/27/1998 Incorporated as RH CEMENT CO., LTD.

12/1998 Acquired Cement Business from HALLA CEMENT CO., LTD.

01/14/2000 Changed company name to the present name

01/25/2000 Registered as a Foreign Direct Investment Corporation

05/07/2004 Decreased capital to 221,737,035,000 KRW from 226,460,000,000 KRW

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Michel Puchercos

Male

French

01/29/2009

Director

Mr.

Silvang Garno

Male

French

03/30/2012

Director

Mr.

Fredrick Viyon

Male

French

03/30/2012

Director

Mr.

Wig Bacel Donbreval

Male

French

03/30/2012

Director

Mr.

Pablichio Olivares

Male

French

03/30/2012

Auditor

M/S.

Lee Hee-Sook

Female

Korean

03/29/2009

Mr. Michel Puchercos

-Ecole Polytechnique (1976)

-Ecole Nationale du Genie Rural, des Eaux et des Forets (National School of Rural Engineering, Waterways and Forests) (1981)

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

03/2013

75,836,110,848

526,861,145,611

-2,849,066,651

2012

402,499,788,268

531,611,745,594

29,436,675,497

2011

375,594,489,526

500,547,979,422

-28,757,135,986

2010

 345,480,312,226

507,250,215,002

-14,920,340,319

2009

394,324,503,241

424,468,027,658

-13,504,758,194

2008

364,298,220,254

483,801,781,406

-9,746,864,525

2007

335,172,949,511

477,122,509,000

-11,378,798,726

2006

342,586,712,387

469,445,093,908

-2,973,565,869

 

 

Financial Description

 

Authorized Capital(KRW)

250,000,000,000

Paid-Up Capital(KRW)

221,737,035,000

Total Issued Shares

44,347,407

 

Balance Sheet

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

526,861,145,611

531,611,745,594

500,547,979,422

Current Assets

169,096,066,112

180,693,867,788

137,708,453,730

-Quick Assets

124,635,222,874

135,111,223,501

100,965,664,334

-Inventories

44,460,843,238

45,582,644,287

36,742,789,396

Fixed Assets

357,765,079,499

350,917,877,806

362,839,525,692

-Investment

9,642,188,725

6,861,571,635

8,373,507,410

-Tangibles

307,390,345,212

305,051,906,226

313,934,926,960

-Intangibles

37,025,912,839

35,192,230,678

36,259,166,568

-Others

3,706,632,723

3,812,169,267

4,271,924,754

Total Liabilities

173,508,227,526

175,328,933,891

171,566,115,871

Current Liabilities

112,655,691,941

114,679,030,594

105,231,911,049

Fixed Liabilities

60,852,535,585

60,649,903,297

66,334,204,822

Capital Stock

221,737,035,000

221,737,035,000

221,737,035,000

Capital Surplus

 

 

 

Profit Surplus

60,771,859,089

63,620,925,740

34,184,250,243

Capital Adjustment

70,844,023,996

70,924,850,963

73,060,578,308

Total Equity

353,352,918,085

356,282,811,703

328,981,863,551

Liab. & Shareholder’s Equity

526,861,145,611

531,611,745,594

500,547,979,422

 

Current Liabilities

112,655,691,941

114,679,030,594

105,231,911,049

Trade Payables

40,675,960,565

40,093,630,722

49,401,749,991

Account Payables

42,748,142,225

46,419,010,181

41,060,336,654

Accrued Expenses

3,357,907,230

3,085,295,624

3,235,773,008

Accrued Dividends

685,660

685,660

685,660

Advance Receipts

1,123,140,161

1,413,888,235

2,758,119,082

Unearned Income

670,038,423

8,631,690

217,161,621

Withholdings

1,325,121,325

622,111,742

1,222,454,543

Accrued Income Tax

6,372,270,996

5,658,273,922

1,452,323,169

Current Portion of Long-Term Debts

3,534,084,500

4,238,909,500

5,025,209,500

Current Portion of Long-Term Lease Debts

959,870,451

938,593,318

858,097,821

Derivatives

204,452,707

 

 

Provisions for Disaster Recovery

11,684,017,698

12,200,000,000

 

Fixed Liabilities

60,852,535,585

60,649,903,297

66,334,204,822

Long-Term Borrowings

5,454,197,500

5,968,976,500

10,187,686,000

Provision for Severance & Retirement

31,309,308,700

29,941,581,474

29,525,105,659

Other Provisions

10,892,872,565

10,702,291,129

9,950,641,681

Leasehold Deposit Received

414,862,313

414,362,313

416,958,120

Guarantee Deposit

823,700,000

843,700,000

983,700,000

Long-Term Lease Debts

8,960,825,630

9,208,921,193

10,147,514,511

Deferred Income Tax Credit

3,299,772,377

3,873,074,188

5,475,350,951

 

Income Statement

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

75,836,110,848

402,499,788,268

375,594,489,526

Cost of Sold Goods

71,024,532,327

332,705,973,528

359,393,461,568

Gross Profit

4,811,578,521

69,793,814,740

16,201,027,958

Selling & Admin. Expenses

8,336,878,376

32,877,960,779

38,211,816,416

Operating Income

-3,525,299,855

36,915,853,961

-22,010,788,458

Non-Operating Income

1,185,404,381

19,278,340,480

6,415,075,782

Non-Operating Expenses

1,372,529,478

27,040,741,090

11,801,865,035

Income Before Taxes

-3,712,424,952

29,153,453,351

-27,397,577,711

Income Taxes Expenses

-863,358,301

-283,222,146

1,359,558,275

Net Income

-2,849,066,651

29,436,675,497

-28,757,135,986

 

Cash Flows

Unit : Korean Won

01/01/2013~03/31/2013

As of 12/31/2012

As of 12/31/2011

Cash Flows from Operating

8,351,758,617

51,937,595,888

19,167,583,674

-Net Income

-2,849,066,651

29,436,675,497

-28,757,135,986

-Exp. without Cash Outflow

7,132,451,289

46,474,729,762

32,764,274,657

-Revenue without Cash Inflows

-25,366,096

-928,945,083

-1,881,824,425

-Changes in Asset/ & Liability

4,093,740,075

-23,044,864,288

17,042,269,428

Cash Flows from Investing

-9,039,349,887

-14,244,715,050

-13,392,896,315

-Cash Inflow from Investing

2,559,377,002

2,006,967,094

5,385,118,823

-Cash Outflows for Investing

-11,598,726,889

-16,251,682,144

-18,778,015,138

Cash Flows from Financing

-1,673,048,840

-6,818,788,860

-6,801,118,860

-Cash Inflows from Financing

 

 

 

-Cash Outflows from Financing

-1,673,048,840

-6,818,788,860

-6,801,118,860

Increase/Decrease in Cash

-2,360,640,110

30,874,091,978

-1,026,431,501

Cash at the Beginning of Year

49,625,535,636

18,751,443,658

19,777,875,159

Cash at the End of Year

47,264,895,526

49,625,535,636

18,751,443,658

 

 

Products, Technologies, Services Description

 

Main Products & Services

Cement, Clinker

Detailed Products Spec.

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

HYUNDAI OIL REFINERY CO., LTD.(110111-0090558)

NAMHAE CHEMICAL CORPORATION(110111-0164717)

OXBOW

Customers

 

Competitors

SSANGYONG CEMENT INDUSTRIAL CO., LTD.

SSANG-YONG BLDG., 24-1, JEODONG 2-GA, JUNG-GU, SEOUL, KOREA

TEL:+82-2-2270-5114  FAX:+82-2-2275-7040

 

HANIL CEMENT CO., LTD.

15TH FL., UDEOK BLDG., 832-2, YEOKSAM 1-DONG, GANGNAM-GU, SEOUL, KOREA

TEL:+82-2-531-7000  FAX:+82-2-531-7113

 

TONG YANG CEMENT CORPORATION

ALPHA BLDG., 70, SEORIN-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-3770-3000  FAX:+82-2-3770-3305

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

LAFARGE S.A.

LAKO LTD.(141111-0027009)

POSFINE CO., LTD.(204611-0030668)

CEMENTIA TRADING CO.

LAFARGE ASIA SDN BHD

LAFARGE CEMENT LIMITED LIABLITY COMPANY

LAFARGE SHUI ON(BEIJING)

LAFARGE SURMA CEMENT

MALAYAN CEMENT BERHAD

PT.SEMEN ANDALAS INDONESIA

Overseas Office

 

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

 

Corporate Ownership

LAFARGE S.A.

FINANCIERE LAFARGE

Major Shareholders

 

Cooperative Enterprise

-Franchise Agreement with

LAFARGE S.A.

 

-Insured Company

HYUNDAIMARINE&FIREINSURANCECO.,LTD.(110111-0035893)

SAMSUNG FIRE & MARINE INSURANCE CO., LTD.(110111-0005078)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2013

2012

2011

Export

-

38,902

17,999

Domestic

75,836

363,598

50,284

Total

75,836

402,500

68,283

The Subject deals with the companies in China and Taiwan.

 

 

News Clipping

 

Not Available


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.59.70

UK Pound

1

Rs.91.14

Euro

1

Rs.77.97

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

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.