MIRA INFORM REPORT

 

 

 

Report Date :

13.03.2013

 

IDENTIFICATION DETAILS

 

Name :

GULF ALUMINIUM ROLLING MILL CO BSC (C) (GARMCO)

 

 

Registered Office :

North Sitra Industrial Area, Entrance 3, 20725 Manama

 

 

Country :

Bahrain

 

 

Financials (as on) :

31.12.2011

 

 

Date of Incorporation :

1981

 

 

Com. Reg. No.:

11300

 

 

Legal Form :

Bahraini Shareholding Company Closed – BSC (C)

 

 

Line of Business :

Production of aluminium flat products, sheets, coils, rolls formed sheets and circles.

 

 

No. of Employees :

1,120

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Status :

Good

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)

Bahrain

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

bahrain - ECONOMIC OVERVIEW

 

Bahrain is one of the most diversified economies in the Persian Gulf. Highly developed communication and transport facilities make Bahrain home to numerous multinational firms with business in the Gulf. As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf state. Bahrain's economy, however, continues to depend heavily on oil. Petroleum production and refining account for more than 60% of Bahrain's export receipts, 70% of government revenues, and 11% of GDP (exclusive of allied industries). Other major economic activities are production of aluminum - Bahrain's second biggest export after oil - finance, and construction. Bahrain competes with Malaysia as a worldwide center for Islamic banking and continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. In 2011, Bahrain experienced economic setbacks as a result of domestic unrest. Bahrain's reputation as a financial hub of the Gulf has been damaged, and the country now risks losing financial institutions to other regional centers such as Dubai or Doha. Economic policies aimed at restoring confidence in Bahrain's economy, such as the suspension of an expatriate labor tax, will make Bahrain's foremost long-term economic challenges - youth unemployment and the growth of government debt - more difficult to address.

 

Source : CIA

 

 


SUMMARY

 

Company Name                                     : GULF ALUMINIUM ROLLING MILL CO BSC (C) (GARMCO)

Country of Origin                                    : Bahrain

Legal Form                                            : Bahraini Shareholding Company Closed – BSC (C)

Registration Date                                   : 1981

Commercial Registration Number            : 11300

Issued Capital                                        : BD 44,000,000

Paid up Capital                                      : BD 44,000,000

Total Workforce                                     : 1,120

Activities                                               : Production of aluminium flat products, sheets, coils, roll formed sheets and circles.

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

Person Interviewed                                 : Taj Sheikh Mohamed, Costing Manager

 


COMPANY NAME

 

GULF ALUMINIUM ROLLING MILL CO BSC (C) (GARMCO)

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : North Sitra Industrial Area, Entrance 3

 

PO Box             : 20725

 

Town                 : Manama

Country             : Bahrain

 

Telephone         : (973-17) 731000 / 734601 / 734600

Facsimile          : (973-17) 730542 / 739800

Email                : information@garmco.com / sales@garmco.com

 

Premises

 

Subject operates from a large suite of offices and a factory that are owned and located in the Industrial Area of Manama.

 

 

KEY PRINCIPALS

 

     Name                                                                                               Position

 

·       Aref Saleh Khamis                                                                            Chairman

 

·       Salem Bin Nasser Al Ismaily                                                              Director

 

·       Abdul Rahman Al Shaibi                                                                    Director

 

·       Faisal Hamad Al Roomi                                                                     Director

 

·       Ibtehal Abdulla A Al Nesuf                                                                  Director

 

·       A Aziz Bin Sulaiman Al Humaid                                                         Director

 

·       Hasan Bin Ali Al Ghannam Al Boainain                                               Director

 

·       Patrick Beckett                                                                                 Director

 

·       Abdulla Bin Ali Bin Zaher Al Hinai                                                       Director

 

·       Mohamed Khalid Ghanem Al Ghanem                                     Director

 

·       Zakareya A Rahim Buallay                                                                 General Manager

 

·       Adel Hamad A Rahman Hamad                                                          Chief Executive Officer

 

·       A Aziz Abdulla Mohamed                                                                   Operations Manager

 

·       Adrian Roger James                                                                          Maintenance Manager

 

·       Sameer Abdulla Abubaker                                                                  Engineering Manager

 

·       Mohamed Isa Ebrahim Abbas                                                 Technical Manager

 

·       Parkash V Nair Narayanan                                                                 Chief Financial Officer

 

·       Khalid Majid Khalifa Al Majid                                                              Human Resources Manager

 

·       Wagdi El Shirawi                                                                               Marketing Manager

 

·       Taj Sheikh Mohamed                                                             Costing Manager

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1981

 

Legal Form                  : Bahraini Shareholding Company Closed – BSC (C)

 

Commercial Reg. No.  : 11300

 

Issued Capital              : BD 44,000,000

 

Paid up Capital            : BD 44,000,000

 

Name of Shareholder (s)                                     Percentage

 

·       State of Bahrain                                                             37.29%

 

·       Saudi Basic Industries Corporation (Sabic)                       30.40%

PO Box: 5101

Riyadh 11422

Saudi Arabia

Tel: (966-1) 4012033

Fax: (966-1) 4012045

 

·       Industrial Bank of Kuwait                                                 16.98%

Commercial Area No. 9

PO Box: 3146

Safat 13032

Kuwait

Tel: (965) 2457661

Fax: (965) 2462057

 

·       Gulf Investment Corporation                                               5.90%

 

·       Republic of Iraq                                                                4.71%

 

·       Sultanate of Oman                                                           2.36%

 

·       State of Qatar                                                                  2.36%

 

 

AFFILIATED COMPANIES

 

·       Garmco Foil Mill Co WLL

North Sitra Industrial Area

PO Box: 20725

Manama

Tel: (973-17) 734696

Fax: (973-17) 739830

 

·       GARMCO USA

     55 Triangle Street

     Danbury

     CT 06810-6983

     United States of America

     Tel: (1-203) 7432731

     Fax: (1-203) 7444996

     Email: ussales@garmco.com

 

·       GARMCO (HK) Limited

     Rm. 2409 Hopewell Centre

     183 Queen's Road East

     Wanchai

     Hong Kong

     Tel: (852-2) 8662230

     Fax: (852-2) 5283709 / 8611508

     Email: tonyk@garmcohk.com.hk

 

·       GARMCO (S) Pte Ltd.

     No. 2 Taus Basin Link

     Singapore 2263

     Tel: (65) 8621011

     Fax: (65) 8625900

     Email: garmcos@singnet.com.sg

 

·       GARMCO (Australia) Pty Ltd.

     52A Winterton Road

     Clayton

     Victoria 3168

     Australia

     Tel: (61-3) 95455211

     Fax: (61-3) 95455233

     Email: sue@garmco.com.au

 

 

OPERATIONS

 

Activities: Engaged in the production of aluminium flat products, sheets, coils, roll formed sheets and circles.

 

Subject was originally established in 1981, however production did not commence until November 1985. The mill was officially inaugurated by HH Sheikh Issa Bin Suliman Al Khalifa, the Amir of Bahrain on 19th January 1986.

 

The plant was constructed by Kaiser Engineering, USA and the machinery was installed by Kobe Steel of Japan who also undertook the start-up operation and the training of local staff.

 

Garmco's two main products are feedstock for foil manufacturers and feedstock for automated paint lines, each accounting for 30 per cent of the total turnover. All of the primary aluminium it uses is sourced from Aluminium Bahrain (Alba).

 

The original GARMCO facility had an annual capacity of 40,000 tonnes. Through equipment enhancement, this increased to 70,000 tonnes by 1990. GARMCO then invested in a second cold-rolling mill and related facilities, resulting in the current annual capacity of 125,000 tonnes. A further update of the facilities was done in 2004 to raise the capacity to 145,000 tonnes. In 2005 another fine tuning on the existing equipment was carried out to reach a capacity of 165,000 tonnes.

 

Import Countries: United States of America, United Kingdom, Italy, Sweden and Japan

 

International Suppliers:

 

·       Otto Junker GmbH    Germany

 

Export Countries: Garmco exports 90% of its production outside the GCC region, reaching such major markets as  Australia, Korea, China, Japan, Singapore, Indonesia and Malaysia as well as Europe and the United States of America

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,120 employees, with 85% of them being Bahraini.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Bahraini Dinar (BD)

 

                                                Year Ending 31/12/10:                Year Ending 31/12/11:

 

Total Sales                                BD 193,931,000             BD 197,246,000

 

Local sources consider subject’s financial condition to be Good.

 

The above figures were provided by Mr Taj Sheikh Mohamed, Costing Manager

 

 

BANKERS

 

·       National Bank of Bahrain BSC

NBB Tower

Government Road

PO Box: 106

Manama

Tel: (973-17) 258800

Fax: (973-17) 263876

 

·       Al Ahli Commercial Bank

Government Avenue

PO Box: 5941

Manama

Tel: (973-17) 244333

Fax: (973-17) 241301

 

·       Gulf International Bank BSC

     Al Dowali Building

     3 Palace Avenue

     PO Box: 1017

     Manama

     Tel: (973-17) 534000 / 534300 / 530030

     Fax: (973-17) 522633 / 522530 / 522629

     Email: gibmktg@batelco.com.bh

 

·       Bank of Bahrain & Kuwait

43 Government Avenue

PO Box: 597

Manama

Tel: (973-17) 253388

Fax: (973-17) 275785

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                              January 2000

Credit amount                                        11,000

Amount overdue                         0

Payment terms                                      30 days

Payment Method                                   Letters of Credit

Paying record                                        No Complaints

Currency                                               Pounds Sterling

 

 

GENERAL COMMENTS

 

Gulf Aluminium Rolling Mill Co BSC (C) (GARMCO) was founded in 1981 and has become the largest downstream aluminium facility in the Arabian Gulf region.

 

The company is owned by the governments of Bahrain, Oman, Qatar and Iraq, as well as the large regional companies, Saudi Basic Industries Corporation (Sabic), Industrial Bank of Kuwait, and Gulf Investment Corporation.

 

During the course of this investigation nothing detrimental was uncovered regarding the manner in which payment obligations are fulfilled and the operating history is clear. As such we are of the opinion that the subject is trustworthy for normal business relations.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.54.33

UK Pound

1

Rs.80.89

Euro

1

Rs.70.73

 

 

INFORMATION DETAILS

 

Report Prepared by :

PDT

 

 

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.