MIRA INFORM REPORT

Report Date :

21.10.2013

IDENTIFICATION DETAILS

Name :	MIDREX TECHNOLOGIES INC.
Registered Office :	2725 Water Ridge Parkway, Ste 100, Charlotte, NC 28217
Country :	United States
Financials (as on) :	2012
Date of Incorporation :	26.08.1992
Legal Form :	Corporation – Profit
Line of Business :	Designs, manufactures, and sells direct reduction plants for the production of direct reduction iron
No. of Employees :	300

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 31^st, 2013

Country Name	Previous Rating (31.12.2012)	Current Rating (31.03.2013)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

UNITED STATES - ECONOMIC OVERVIEW

The US has the largest and most technologically powerful economy in the world, with a per capita GDP of $49,800. In this market-oriented economy, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, they face higher barriers to enter their rivals' home markets than foreign firms face entering US markets. US firms are at or near the forefront in technological advances, especially in computers and in medical, aerospace, and military equipment; their advantage has narrowed since the end of World War II. The onrush of technology largely explains the gradual development of a "two-tier labor market" in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income. Imported oil accounts for nearly 55% of US consumption. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the United States into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, in October 2008 the US Congress established a $700 billion Troubled Asset Relief Program (TARP). The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009 the US Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012 the federal government reduced the growth of spending and the deficit shrank to 7.6% of GDP. Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2011, the direct costs of the wars totaled nearly $900 billion, according to US government figures. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries. In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that will extend coverage to an additional 32 million American citizens by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on health care - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010. In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight. In December 2012, the Federal Reserve Board announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short term rates near zero until unemployment drops to 6.5% from the December rate of 7.8%, or until inflation rises above 2.5%. Long-term problems include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits - including significant budget shortages for state governments

Source : CIA

Company name and address

MIDREX TECHNOLOGIES INC.

Address: 2725 Water Ridge Parkway, Ste 100, Charlotte, NC 28217 – USA

Telephone: +1 704-373-1600

Fax: +1 704-373-1611

Website: www.midrex.com

Corporate ID#: 2307980

State: Delaware

Judicial form: Corporation – Profit

Date incorporated: 08-26-1992

Date founded: 1969

Stock: -

Value: -

Name of manager: James D. McCLASKEY

ACTIVITIES & OPERATIONS

IST

Business:

Midrex Technologies, Inc., together with its subsidiary, Forwarding Services International, Inc., designs, manufactures, and sells direct reduction plants for the production of direct reduction iron to private and government organizations worldwide. It offers rotary hearth furnaces, which recycle steel mill by-products with iron unit recovery, process steel mill by-products into hot metal and pig iron for steel mill use, and produce pig iron nuggets from iron ore. The company also offers shaft furnaces.

In addition, Midrex offers spare parts and materials, engineered solutions, field services, and financing assistance, as well as maintenance, repair, and operations services.

It has strategic alliances with Siemens VAI Metals Technologies, the SMS Group, Köppern, Aumund Fördertechnik, Jacobs Engineering India, and Praxair, Inc.

Midrex Technologies, Inc. was formerly known as Midrex Direct Reduction Corporation and changed its name to Midrex Technologies, Inc. in March 2001. The company was founded in 1969 and is based in Charlotte, North Carolina with additional offices in London, United Kingdom; Gurgaon, India; and Shanghai, China.

Midrex Technologies, Inc. operates as a subsidiary of Kobe Steel Ltd.

Last news:

On July 9, 2013, Kobe Steel Ltd. said that Midrex Technologies Inc., together with Siemens Industry Inc. has won an order to construct a natural-gas-burning steel plant in the U.S. state of Texas. The project, handled by Austrian steelmaker Voestalpine AG, also includes upgrading port facilities and is valued at EUR 550 million, or about JPY 71.5 billion.

Midrex and Siemens will be responsible for building plant facilities worth an estimated JPY 30 billion. The plant will use natural gas instead of coking coal, resulting in lower carbon dioxide emissions. Its output capacity is set at 2 million tons a year, making it the largest natural-gas-fired steel mill ever constructed by Midrex.

Suppliers include:

TUWAIRQI STEEL MILLS LIMITED
EXPORT PROCESSING ZONE BIN QASIM KARACHI PAKISTAN

EIN: 52-1791274

Staff: 300

Operations & branches:

At the headquarters, we find the corporate office, on lease.

SHAREHOLDERS & MANAGERS

Shareholders:

The ultimate parent company is

Kobe Steel Ltd.

2-4, Wakinohama-Kaigandori 2-chome

Chuo-ku, Kobe, 651-8585, Japan

Kobe Steel, Ltd. primarily operates in the materials and machinery sectors in Japan and internationally. The company’s Iron & Steel segment offers steel products, such as steel wire rods and bars, steel plates and sheets, and pig iron; steel castings and forgings; titanium products; and steel and iron powder, as well as is engaged in the wholesale of electric power supply.

The Company is listed in Tokyo.

Management:

James D. McClaskey is the President and Chief Executive Officer

Stephen Montague is Vice President - Sales & Marketing

Daniel Sanford is Vice President - Operations

David Hamilton the Chief Financial Officer

As far as we know, they are involved in other local corporations, including:

MIDREX GLOBAL LOGISTICS, INC.

2725 Water Ridge Parkway, Ste 100, Charlotte, NC 28217

Subsidiaries

And partnership: None

FINANCIALS

In United States, privately held corporations are not required to publish any financials.

On a direct call, a financial assistant controlled the present report.

We sent a fax but no answer received.

Sales declared for year 2012 is in the range of USD 36,800,000=

The business is profitable.

Banks: Chase Bank

…

LEGAL FILINGS

Legal filings & complaints:

State: New York State

Case number: 1:13-cv-05264-AJN

Plaintiff: Midrex International Inc. et al

Defendant: Mediterranean Shipping Company S.A. et al.
Alison J. Nathan, presiding
Date filed: 07/29/2013
Date of last filing: 10/07/2013

Cause: Violation of Maritime Regulations

Secured debts summary (UCC): None

Haut du formulaire

COMPANY CREDIT HISTORY

Trade references:

Date reported: August 2013

High credit: USD 40,000

Now owing: 0

Past due: 0

Last purchase: July 2013

Line of business: Office supply

Paying status: 11 days beyond terms

Date reported: August 2013

High credit: USD 250,000+

Now owing: 0

Past due: 0

Last purchase: July 2013

Line of business: Payroll

Paying status: As agreed

Date reported: August 2013

High credit: USD 600

Now owing: 0

Past due: 0

Last purchase: July 2013

Line of business: Telecommunications

Paying status: 10 days beyond terms

Domestic credit history:

Domestic credit history appears as follow:

Monthly Payment Trends - Recent Activity

Date	Balance	Current	Up to 30 DBT	31-60 DBT	61-90 DBT	>90 DBT
05/13	$49,500	86%	4%	10%	0%	0%
06/13	$62,300	82%	9%	1%	8%	0%
07/13	$114,700	91%	9%	0%	0%	0%
08/13	$103,500	33%	58%	9%	0%	0%
09/13	$103,200	38%	53%	9%	0%	0%
10/13	$69,800	40%	47%	13%	0%	0%

National Credit Bureaus gave a medium credit rating.

According to our credit analysts, during the last 6 months, domestic payments were made with an average of 10 to 15 days beyond terms.

International credit history:

Payments of imports are currently made with an average of 2 to 5 days beyond terms.

Other comments:

The Company maintains its business.

The bank confirmed some late payments.

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

Last report was filed on 03-26-2013.

The risk is medium.

Our opinion:

A business connection may be conducted but we suggest you to check regularly the way of payments.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.61.28
UK Pound	1	Rs.99.03
Euro	1	Rs.83.80

INFORMATION DETAILS

Report Prepared by :

NIS

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.