MIRA INFORM REPORT

 

 

Report Date :

27.05.2013

 

IDENTIFICATION DETAILS

 

Name :

SAPPI  PAPIER  HOLDING  GMBH

 

 

Registered Office :

C/o Sappi Trading Hong Kong Ltd.

41/F., AIA Tower, 183 Electric Road, North Point

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

21.09.2001

 

 

Com. Reg. No.:

32091643

 

 

Legal Form :

Non‑Hong Kong Company

 

 

Line of Business :

Trader of Wood pulp, paper and related products.

 

 

No. of Employees :

About 14,000.  Group Employee (As at 30-09-2012)

 

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 :

Good

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)

Hong Kong

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

HONG KONG - ECONOMIC OVERVIEW

 

Hong Kong has a free market economy, highly dependent on international trade and finance - the value of goods and services trade, including the sizable share of re-exports, is about four times GDP. Hong Kong levies excise duties on only four commodities, namely: hard alcohol, tobacco, hydrocarbon oil, and methyl alcohol. There are no quotas or dumping laws. Hong Kong's open economy left it exposed to the global economic slowdown that began in 2008. Although increasing integration with China, through trade, tourism, and financial links, helped it to make an initial recovery more quickly than many observers anticipated, it again faces a possible slowdown as exports to the Euro zone and US slump. The Hong Kong government is promoting the Special Administrative Region (SAR) as the site for Chinese renminbi (RMB) internationalization. Hong Kong residents are allowed to establish RMB-denominated savings accounts; RMB-denominated corporate and Chinese government bonds have been issued in Hong Kong; and RMB trade settlement is allowed. The territory far exceeded the RMB conversion quota set by Beijing for trade settlements in 2010 due to the growth of earnings from exports to the mainland. RMB deposits grew to roughly 9.1% of total system deposits in Hong Kong by the end of 2012, an increase of 59% from the previous year. The government is pursuing efforts to introduce additional use of RMB in Hong Kong financial markets and is seeking to expand the RMB quota. The mainland has long been Hong Kong's largest trading partner, accounting for about half of Hong Kong's exports by value. Hong Kong's natural resources are limited, and food and raw materials must be imported. As a result of China's easing of travel restrictions, the number of mainland tourists to the territory has surged from 4.5 million in 2001 to 34.9 million in 2012, outnumbering visitors from all other countries combined. Hong Kong has also established itself as the premier stock market for Chinese firms seeking to list abroad. In 2012 mainland Chinese companies constituted about 46.6% of the firms listed on the Hong Kong Stock Exchange and accounted for about 57.4% of the Exchange's market capitalization. During the past decade, as Hong Kong's manufacturing industry moved to the mainland, its service industry has grown rapidly. Growth slowed to 5% in 2011, and less than 2% in 2012. Credit expansion and tight housing supply conditions caused Hong Kong property prices to rise rapidly and inflation to rise 4.1% in 2012. Lower and middle income segments of the population are increasingly unable to afford adequate housing. Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in 1983

Source : CIA


Company name and address

 

SAPPI  PAPIER  HOLDING  GMBH

(Incorporated in the a Austria)

 

Address:           c/o Sappi Trading Hong Kong Ltd.

                        41/F., AIA Tower, 183 Electric Road,

                        North Point, Hong Kong.

 

PHONE:            852-2219 1060,  2219 1061,  2877 4974,  2877 4969

 

FAX:                 852-2877 4962,  2877 3523

 

E-MAIL:            kirsten.kuo@sappi.com

 

 

MANAGEMENT

 

Authorized Representative in Hong Kong:  Mr. Wayne Victor Rau

 

 

SUMMARY

 

Registered in Hong Kong on:     21st September, 2001.

 

Organization:                             Non-Hong Kong Company.

 

Capital:                                     Authorised:                   EUR$72,700.00

Issued & Paid Up:         EUR$72,700.00

 

Business Category:                   Paper and Pulp Trader.

 

Group Turnover:                        US$6,347 million  (Year ended 30-09-2012)

 

Group Employees:                    About 14,000.  (As at 30-09-2012)

 

Main Dealing Banker:                 Union Bank of Switzerland, Hong Kong Branch.

 

Banking Relation:                      Good.


ADDRESS

 

Hong Kong Principal Place of Business:-

c/o Sappi Trading Hong Kong Ltd.

41/F., AIA Tower, 183 Electric Road, North Point, Hong Kong.

 

Ultimate Holding Company:-

Sappi Ltd., South Africa.

 

Sister/Affiliated Companies:-

Sappi Group of Companies

S.D. Warren Co., USA.

Sappi Alfeld GmbH, Germany.

Sappi Austria Produktions-GmbH & Co. KG, Austria.

Sappi Cloquet LLC, USA.

Sappi Ehingen GmbH, Germany.

Sappi Esus Beteiligungsverwaltungs GmbH, Austria.

Sappi Europe S.A., Belgium.

Sappi Fine Paper plc, South Africa.

Sappi Finland Oy, Finland.

Sappi Holding GmbH, Austria.

Sappi International S.A., Belgium.

Sappi Lanaken NV, Belgium.

Sappi Lanaken Press Paper NV, Belgium.

Sappi Maastricht B.V., the Netherlands.

Sappi Management Services (Pty) Ltd., South Africa.

Sappi Nijmegen B.V., the Netherlands.

Sappi Papier Holding GmbH, Austria.

Sappi Property Co. Ltd., South Africa.

Sappi Schweiz AG, Switzerland.

Sappi Share Faciliation Co. (Pty) Ltd., South Africa.

Sappi Southern Africa (Pty) Ltd., South Africa.

Sappi Stockstadt GmbH, Germany.

Sappi Trading Hong Kong Ltd., Hong Kong.
[Formerly known as: Speciality Pulp Services Ltd.]

Sappi Trading Pulp AG, Switzerland.

Sappi UK Ltd., UK.

Umkomass Lignin (Pty) Ltd., South Africa.

Usutu Forest Products Co. Ltd., South Africa.

etc.

 

 

BUSINESS REGISTRATION NUMBER

 

32091643

 

 

COMPANY FILE NUMBER

 

 F0011425

 

 

MANAGEMENT

 

Authorised Representative in Hong Kong:  Mr. Wayne Victor Rau

[Address:          House 29, Palm Drive The Redhill Peninsula, Site D, 18 Pak Pat Shan Road, Hong Kong.]

 

 

CAPITAL

 

Authorized Share Capital: EUR$72,700.00

 

Issued & Pais Up Capital: EUR$72,700.00

 

 

DIRECTORS

 

Stephen John BLYTH

Mark Richard GARDNER

Jorg Harri PASSLER

Bernd Herbert Dieter ROSS

Berend John WIERSUM

 

 

SECRETARY

 

Nil.

 

 

HISTORY

 

The subject was incorporated in Austria as a limited company.  It has established a principal place of business in Hong Kong and was registered on 21st September, 2001 as a Non-Hong Kong company under part XI of the Hong Kong Companies Ordinance.

Originally the subject was registered under the name of Sappi Papier Holding AG, name changed to the present style on 3rd September, 2003.

Apart from these, neither material change nor amendment has been ever traced and noted.

 

 

OPERATIONS

 

Activities:                      Paper and Pulp Trader.

 

Lines:                           Wood pulp, paper and related products.

 

Group Employees:         About 14,000.  (As at 30-09-2012)

 

Commodities Imported: Taiwan, Southeast Asia, North America, etc.

 

Markets:                        Europe, North America, etc.

 

Group Turnover:            US$5,863 million  (Year ended 30-09-2008)

US$5,369 million  (Year ended 30-09-2009)

US$6,572 million  (Year ended 30-09-2010)

US$7,286 million  (Year ended 30-09-2011)

US$6,347 million  (Year ended 30-09-2012)

 

Terms/Sales:                 L/C, T/T, etc

 

Terms/Buying:               L/C, D/P, O/A, etc.

 

 

FINANCIAL INFORMATION

 

Authorized Share Capital:           EUR$72,700.00

 

Issued & Pais Up Capital:          EUR$72,700.00

 

Mortgage or Charge:                 (See attachment)

 

Group Net Profit/(Loss):                       US$102 million  (Year ended 30-09-2008)

(US$177 million)(Year ended 30-09-2009)

US$  66 million  (Year ended 30-09-2010)

(US$232 million)(Year ended 30-09-2011)

US$104 million  (Year ended 30-09-2012)

 

Profit or Loss:                           Group suffered from losses in FY 2011 & 2009.

 

Condition:                                 Keeping in a normal manner.

 

Facilities:                                  Making active use of general banking facilities.

 

Payment:                                  Met trade commitments as required.

 

Commercial Morality:                 Satisfactory.

 

Bankers:-                                  Union Bank of Switzerland, Hong Kong Branch.

J.P. Morgan Europe Ltd., UK.

Standard Chartered Bank (Hong Kong) Ltd., Hong Kong.

 

Standing:                                  Good.

 

 

GENERAL

 

Sappi Papier Holding GmbH was registered in Hong Kong as a non‑Hong Kong Company in September 2001.  It was registered in Austria.  Its ultimate holding company Sappi Ltd. [Sappi] is a South Africa-based firm.  In fact, the subject is a member of the Sappi Group in the Asia Pacific region as well as in Europe.

The subject is engaged in the production and sale of coated fine paper and chemical cellulose in North America, Europe, and Africa.  It also manufactures coated fine paper for use in magazines, catalogues, brochures, annual reports, and commercial printing applications; uncoated fine paper for use in bonds/writing; and offset printing and photocopy papers, writing tablets, and lightweight printing and thin papers.  The subject also produces dissolving pulp, which is used in the manufacture of viscose textiles.

The subject was formerly known as Sappi Papier Holding AG.  It is based in Gratkorn, Austria.  It operates as a subsidiary of Sappi.

The subject has had an associated company Sappi Trading Hong Kong Ltd. [Sappi Trading] located at its operating office.

The subject and Sappi Trading are engaged in the same lines of business, more or less.

Headquartered in Hong Kong, Sappi Trading manages a network of 11 sales offices and serves over 100 countries around the world.  Sales and logistical operations are provided for most of the Group’s pulp sales and a large proportion of the Group’s fine paper and specialty paper sales in export markets.  Sappi Trading also manages the Group’s China joint venture’s export sales.

By providing the Group’s manufacturing regions with cost effective access to worldwide markets, the division is an essential component in maximising Sappi’s profitability.

Sappi is a global paper and pulp group.  It is a leading producer of coated woodfree and coated mechanical paper widely used in books, brochures, magazines, catalogues and many other print applications.  It believes it is also the world’s largest producer of chemical cellulose, used primarily in the manufacture of viscose fibre, acetated tow, and consumer and pharmaceutical products.  In addition, it produces newsprint, uncoated graphic and business papers, premium quality packaging papers, a range of coated speciality papers and a range of paper grade pulp.

Sappi is a public company incorporated in the Republic of South Africa.  Its principal executive offices are located at 48 Ameshoff Street, Braamfontein, Johannesburg, 2001, Republic of South Africa, its telephone number is 27‑11‑407-8111.  It currently has its primary listing on the JSE Ltd. [JSE], formerly the Johannesburg Stock Exchange, and has a secondary listing on the New York Stock Exchange.

Sappi was founded and incorporated in 1936 in South Africa and is a corporation organized under the Companies Act 61 of 1973 of the Republic of South Africa.  Until 1990, Sappi primarily expanded its operations within southern Africa.  Since 1990, it has grown through acquisitions outside of southern Africa.  In the mid 1990’s, it acquired S.D. Warren Company, a market leader in the United States in coated woodfree paper and a major producer of other speciality paper products.  It now conducts business as Sappi Fine Paper North America.  In the late 1990’s, it acquired KNP Leykam, a leading European producer of coated woodfree paper.  KNP Leykam now conducts business as Sappi Fine Paper Europe.  In 2002, it acquired Potlatch Corporation’s coated woodfree paper business and have integrated it in Sappi Fine Paper North America.  During August 2009, it permanently ceased operations at Muskegon mill in the United States.  Customers were being served from its other North American operations.  On 2nd November, 2009, it delisted from the London Stock Exchange.  The London share register was closed on 23rd November, 2009 with all remaining shareholders on the United Kingdom share register being transferred to the South African share register.

Sappi’s trading network, Sappi Trading, coordinates the international marketing and distribution of its woodfree and mechanical paper products outside its core regions.  Sappi Trading operates in Hong Kong (China) which is the subject, Sydney (Australia), Sao Paulo (Brazil), Shanghai (China), Konstanz (Germany), Nairobi (Kenya), Mexico City (Mexico), Singapore, Johannesburg and Durban (South Africa), Zurich (Switzerland), Taipei (Taiwan) and New York (United States).  It manages a network of agents around the world, handling exports to over 70 countries.  Sappi Trading also manages the export logistics of the southern African operations.  In total, Sappi Trading had 148 employees in 2010.

On 31st January, 2010, Sappi closed its production facilities at the Usutu mill in Swaziland due to market conditions and forest fire damage.  During January 2010, Sappi permanently ceased operations at the Kangas mill in Finland.

The sales of the Sappi Group for the year ended 30th September, 2012 amounted to US$6,347 million, decreased by 12.9% as compared with US$7,286 million in FY 2011.  However, in FY 2012, the Group made a profit of US$104 million as compared with a loss of US$232 million in FY 2011.

The followings are the highlights of the Group:-

  • 14,000 employees in over 20 countries;
  • Manufacturing operations on three continents;
  • Paper production capacity of 6 million tons a year;
  • Paper pulp production of 3 million tons a year;
  • Sales in over 100 countries; &
  • World's largest manufacturer of dissolving wood pulp with production capacity of 800,000 tons a year increasing to 1.3 million tons in 2013.

The subject is fully supported by the Sappi Group.

On the whole, in view of the background of the subject, consider it good for normal business engagements.

 

 

MORTGAGE OR CHARGE

 

Date

Particulars

Amount

14-04-2011

Instrument:        Security Assignment of Receivables

Property:

All present and future intercompany loan for greater than US$25,000,000 with the company as lender and each debtor

Mortgagee:        J.P. Morgan Europe Ltd.

125 London Wall, London EC2Y 5AJ, UK.

All the senior liabilities and all other present and future obligations at any time due, owing or incurred by any member of the Group and by each Debtor to any Secured Party under the Bonds Finance Documents, the RCF Finance Documents, the OeKB Finance Doucments, any Pari Passu Document, the Hedging Agreements and the Security Documents.

05-07-2012

Instrument:        Security Assignment of Receivables

Property:

All each present and future intercompany loan for greater than US$25,000,000 with the company as lender to a member of the Group as borrower

Mortgagee:        J.P. Morgan Europe Ltd.

125 London Wall, London EC2Y 5AJ, UK.

All the senior liabilities and all other present and future obligations at any time due, owing or incurred by any member of the Group and by each Debtor to any Secured Party under the Bonds Finance Documents, the PCF Finance Documents, the OeKB Finance Documents, any Pari Passu Document, the Hedging Agreements and the Security Documents


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.55.61

UK Pound

1

Rs.83.98

Euro

1

Rs.71.94

 

 

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.