MIRA INFORM REPORT

 

 

Report Date :

22.10.2013

 

IDENTIFICATION DETAILS

 

Name :

EIN SHEMER RUBBER INDUSTRIES ACA LTD.

 

 

Formerly Known As :

EIN SHEMER RUBBER PRODUCTS FACTORY

 

 

Registered Office :

D.N. Hefer Ein Shemer  3881600

 

 

Country :

Israel

 

 

Date of Incorporation :

1967

 

 

Legal Form :

Limited Partnership

 

 

Line of Business :

Designers, manufacturers, marketers and exporters of rubber products, such as: tyre-retread materials, cushion gum, strips, hoses, window and car profiles, blend products

 

 

No. of Employees :

170 employees

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

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 – March, 31st, 2013

 

Country Name

Previous Rating

(31.12.2012)

Current Rating

(31.03.2013)

Israel

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

israel - ECONOMIC OVERVIEW

 

Israel has a technologically advanced market economy. Its major imports include crude oil, grains, raw materials, and military equipment. Cut diamonds, high-technology equipment, and pharmaceuticals are among the leading exports. Israel usually posts sizable trade deficits, which are covered by tourism and other service exports, as well as significant foreign investment inflows. The global financial crisis of 2008-09 spurred a brief recession in Israel, but the country entered the crisis with solid fundamentals - following years of prudent fiscal policy and a resilient banking sector. The economy has recovered better than most advanced, comparably sized economies. In 2010, Israel formally acceded to the OECD. Israel's economy also has weathered the Arab Spring because strong trade ties outside the Middle East have insulated the economy from spillover effects. Natural gasfields discovered off Israel's coast during the past two years have brightened Israel''s energy security outlook. The Leviathan field was one of the world''s largest offshore natural gas finds this past decade, and production from the Tama field is expected to meet all of Israel''s natural gas demand beginning mid-2013. In mid-2011, public protests arose around income inequality and rising housing and commodity prices. The government formed committees to address some of the grievances but has maintained that it will not engage in deficit spending to satisfy populist demands.

 

Source : CIA

 


Company name and address

 

EIN SHEMER RUBBER INDUSTRIES ACA LTD.

(Also trading as: EIN SHEMER RUBBER INDUSTRIES)

Telephone         972 4 637 10 37            

Fax                   972 4 637 23 45

Email:               export@esrubber.com

 

Physical Address:

D.N. Hefer

EIN SHEMER    3881600 ISRAEL

 

Mailing Address:

P.O. Box 881

PARDES HANA-KARKUR          3710802            ISRAEL

 

 

HISTORY & LEGAL FORMATION

 

Originally established as an industrial unit of Kibbutz Ein Shemer in 1967.

 

Converted into a limited partnership and registered as such as per file No. 55-000196-0 on the 01.10.1072.

 

Originally registered under the name EIN SHEMER RUBBER PRODUCTS FACTORY, which changed to EIN SHEMER RUBBER INDUSTRIES on the 10.11.2000.

 

Converted into an Agricultural Cooperative Society and registered under the present name as per file No. 57-003843-0 on the 01.01.2002.

 

*Note: ACA in subject’s name stands for Agricultural Cooperative Association (therefore full name may also be used: EIN SHEMER RUBBER INDUSTRIES AGRICULTURAL COOPERATIVE ASSOCIATION LTD.), which is another translation to “Agricultural Cooperative Society” (ACS), and since there is no registered Latin name for subject, both terms can be used.

 

 

OWNERSHIP

 

Subject is fully owned by Kibbutz Ein Shemer, a co-operative society, operating a communal agricultural settlement.

 

 

DIRECTORS

 

Yehuda Ben-Haim, Chairman,

Natan Vilner, General Manager,

Oded Dagai,

Sagi Granot,

Natan Vilner,

And more.

 

 

BUSINESS

 

Designers, manufacturers, marketers and exporters of rubber products, such as: tyre-retread materials, cushion gum, strips, hoses, window and car profiles, blend products.

 

Subject is divided into 5 main divisions: Compounds, Retread Materials, Hoses, Profiles and a Laboratory.

 

Some 30% of subject’s sales are for export, mainly to Europe.

Most of subject’s purchasing is imports, from Europe, Japan, and the U.S.A.

 

Among clients: ARKAL FILTRATION SYSTEMS, SCHIEFFER MAGAM INDUSTRIES, DURAM RUBBER RAMAT HAKOVESH, RAVIV ACS, etc.

 

Among local suppliers: POLYON BARKAI INDUSTRIES, NOMINOR CHEMICAL INDUSTRIES, GADOT CHEMICALS, PEL DAR POLYMERS, etc.

 

Operating from premises (offices, plant and storage facilities), owned by Kibbutz Ein Shemer, on an area of 12,000 sq. meters, in Kibbutz Ein Shemer, near Hadera.

 

Having 170 employees (same as in 2012, had 164 in mid 2011, 140 employees in 2010, same as in 2009).

 

 

MEANS

 

Current stock is valued at NIS 7,000,000 (was valued at NIS 6,500,000 in mid 2012, similar to 2011 and 2010).

 

B/S to the 31.12.2005 totaled NIS 41,165,000.

Equity the 31.12.2005 valued NIS 8,750,000.

Later B/S data unavailable.

 

 

REVENUES

 

2006 sales claimed to be NIS 70,000,000 (of which 36% were for export).

2007 sales claimed to be NIS 86,000,000 (of which 38% were for export).

2008 sales claimed to be NIS 80,000,000 (of which 38% were for export).

2009 sales claimed to be NIS 64,000,000 (of which 30% were for export).

2010 sales claimed to be NIS 76,000,000 (of which 33% were for export).

2011 sales claimed to be NIS 84,000,000 (of which 33% were for export).

2012 sales claimed to be NIS 90,000,000 (of which 30% were for export).

Projected 2013 sales are NIS 93,000,000 (30% for export).

 

 

OTHER COMPANIES

 

Other companies owned by Kibbutz Ein Shemer:

MINIPLAST ACS LTD., manufacturers, marketers of disposable plastic bio laboratory products, having 40 employees, 2008 sales NIS 16 million,

MINIPLAST EIN-SHEMER (1976), a limited partnership

EIN SHEMER-ALON HOLDINGS LTD.

EIN SHEMER ECONOMIC CO. LTD.

EIN SHEMER AGRICULTURAL PRODUCTS DEVELOPMENT LP.

EIN SHEMER LANDS LTD.

E-GLUE SOFTWARE TECHNOLOGIES LTD., software tools for customized solutions.

 

 

BANKERS

 

Mizrahi Tefahot Bank Ltd., Pardes Hanna Branch (No. 473), Pardes Hanna, account No. 190265.

The First International Bank of Israel Ltd., Hadera Branch (No. 027), Hadera, account No. 227560.

Bank Leumi Le'Israel Ltd., Hadera Business Branch (No. 639), Hadera, account No. 21600/90.

A check with the Central Banks' database did not reveal negative information on subject’s bank accounts.

 

 

CHARACTER AND REPUTATION

 

Nothing unfavorable learnt.

 

Subject is a veteran business, well-known its field.

 

Subject is ISO 9001:2008 certified, meeting other international quality standards.

 

In the past we received positive opinions on subject from their suppliers.

 

Kibbutz Ein Shemer, established 1927, has over 400 members. The Kibbutz also cultivates a large area of agricultural land, including crops (wheat), fruit plantation (Avocado, Citrus), operating large dairy farming, and more. Also operates a Museum, as well as few other small enterprises.

 

In September 2006 subject acquired the business activities of TECHNOGUM RUBBER MANUFACTURE LTD. The company, operated since 1948, manufactured rubber goods for various industries.

 

During the last couple of years subject has been suffering from import of rubber soles for tires renovation in dumping prices from South Africa. Subject appealed to the Anti-Dumping Commissioner, who decided in July 2012 to lay temporary levy. The relevant ministers recommended for a permanent levy of 10%, which was initially rejected by the government Finance Committee, but after pressure, which included a the fear of dismissals of tens of employees from subject's plant, in March 2013 the Finance Committee decided to lay a 7.5% levy.

 

According to the Chairman of the Packaging and Design Institute the branch sales by packaging industries in 2010 amounted to over US$ 1 billion, some 70% are sales to the local market, and some 30% sales for export.

There are some 120 packaging production plants in Israel, directly employing some 9,400 employees as of 2010.

During 2010, packaging in value of US$ 250 - 300 million was imported to Israel.

 

The Society of Israel Plastic & Rubber Industry published data on the sector for 2011: The sector’s turnover (both local and for export) reached US$ 5,075 million, representing 15% increase from 2009 (after 4% decrease from 2008, affected by the global crisis).

Sales for export by the Plastic and Rubber Industry also grew by some 15% in 2011 up to US$ 1,882 million, after in 2010 exports returned to 2008 levels, prior to the global economic crisis. The growth trend in export –in US$ terms- was halted in 2012 with 2.7% decrease from 2011, reaching US$ 1,831 million.

Sales breakdown: 30% of the Plastic & Rubber sector's sales are Household Products, 23% - Agriculture, 16% - Packaging, 9% - Building sector, 9% Industry, 5% Furniture, 4% - Compounds (rest is to other fields).

 

According to the Central Bureau of Statistics, import of Plastic and Rubber raw material for the local industry in 2012 summed up to NIS 9,037 million, 6% increase from 2011, keeping the growth trend from 2010 and 2009, though in a well lower pace.

Investment in imported machinery and equipment to the Plastic & Rubber industry fell in 2012 3% from 2011, totaling NIS 512.1 million. This is after rising by 30% and 8% in 2011 and 2010 from the previous year, respectively, while level of import in 2010 was just fractionally higher than 2009, far from record 2007 & 2008 years.

 

 

SUMMARY

 

Good for trade engagements.


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.49

UK Pound

1

Rs.99.41

Euro

1

Rs.84.12

 

 

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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