MIRA INFORM REPORT

 

 

Report Date :

30.10.2013

 

IDENTIFICATION DETAILS

 

Name :

FMC AGRICULTURAL PRODUCTS INTERNATIONAL AG

 

 

Registered Office :

Suite 2402, 24/F., Central Plaza, 18 Harbour Road, Wanchai, Hong Kong.

 

 

Country :

Hongkong

 

 

Date of Incorporation :

03.11.1999

 

 

Com. Reg. No.:

30461292

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Manufacturing, Sale, Marketing and Distribution all kinds of chemical agricultural products.

 

 

No. of Employees :

15

 

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 :

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)

Hongkong

A2

A2

 

Risk Category

ECGC Classification

 

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

HONGKONG - 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

 

FMC  AGRICULTURAL  PRODUCTS  INTERNATIONAL  AG

(Incorporated in Switzerland)

(Also known as:

FMC AGRICULTURAL PRODUCTS INTERNATIONAL SA or

FMC AGRICULTURAL PRODUCTS INTERNATIONAL INC.)

 

ADDRESS:             Suite 2402, 24/F., Central Plaza, 18 Harbour Road, Wanchai, Hong Kong.

PHONE:                  852-2839 6600

FAX:                       852-2576 2918,  2576 3178

 

 

MANAGEMENT

 

Authorised Representatives in Hong Kong:                                         Mr. Ha Fu Lam, Ricky

Mr. Zhang Yi Hua

 

 

SUMMARY

 

Registered in Hong Kong on:       3rd November, 1999.

(Non-Hong Kong Company)

 

Organization:                             Limited Company.

 

Capital:                                     Authorised: CHF 100,000.00

                                                Issued & Paid Up: CHF 100,000.00

 

Business Category:                    Chemical Agricultural Product Manufacturer.

 

Group Revenue:-                        (Year ended 31-12-2012)

US$3,748.3 million  (Whole Group)

US$1,763.8 million  (Agricultural Products Group)

 

Company Employees:                15.

 

Group Employees:                     Approx. 5,700.  (As at 31-12-2012)

 

Main Dealing Banker:                 Citibank N.A., Hong Kong Branch.

 

Banking Relation:                       Very Good.

 

 

ADDRESS

 

Registered Office:-

Rigistrasse 184, 6340 Baar, Switzerland.

 

Hong Kong Principal Place of Business:-

Suite 2402, 24/F., Central Plaza, 18 Harbour Road, Wanchai, Hong Kong.

 

Sales Offices:-

Indonesia (Jakarta), Australia, Pakistan (Lahore), South Korea (Seoul) and Bangladesh (Dhaka).

 

Manufacturing Locations:-

China (Suzhou), Indonesia (Jawa Tengah) and Pakistan (Lahore).

 

Parent Company:-

FMC Corporation

1735 Market Street, Philadelphia, PA 19103, USA.

[Tel: 1-215-299-6000;  Fax: 1-215-299-5998]

 

Subsidiaries & Associated Companies:-

FMC Group of Companies

FMC (Suzhou) Crop Care Co. Ltd., China.

FMC Agroquimica de Mexico S.R.L. de C.V., Mexico.

FMC Asia-Pacific Inc., USA/Hong Kong.

FMC BioPolymer AS, Norway.

FMC BioPolymer UK Ltd., UK.

FMC Chemical International AG, Switzerland.

FMC Chemical S.p.r.l., Belgium.

FMC Chemicals Ltd., UK.

FMC Chemicals Netherlands BV, Netherlands.

FMC Finance B.V., Netherlands.

FMC Foret S.A., Spain.

FMC India Private Ltd., India.

FMC International - Irish Partnership, Ireland.

FMC Italy s.r.l., Italy.

FMC of Canada Ltd., Canada.

FMC Philippines Inc., Philippines.

FMC Quimica do Brasil Ltda., Brazil.

FMC Specialty Alkali Corporation, USA.

FMC WFC I Inc., USA.

FMC Wyoming Corporation, USA.

Minera Del Altiplano S.A., Argentina.

P.T. Bina Guna Kimia, Indonesia.

Phytone Ltd., Indonesia.

Ruralco Soluciones SA, Argentina.

etc.

 

BUSINESS REGISTRATION NUMBER

 

30461292

 

 

COMPANY FILE NUMBER

 

F0009856

 

 

AUTHORISED REPRESENTATIVES IN HONG KONG

(As per registry dated 03-11-2012)

 

Name

Address

HA Fu Lam, Ricky

Flat G, 40/F., Block 2, Illumination Terrace, 7 Tai Hang Road, Hong Kong.

 

ZHANG Yi Hua

Flat B, 39/F., Tower 4, Dynasty Court, 23 Old Peak Road, Hong Kong.

 

 

CAPITAL

 

Authorised Capital: CHF 100,000.00

 

Issued & Paid Up Capital: CHF 100,000.00

 

 

SHAREHOLDER

 

FMC Corporation, USA.  (100%)

 

 

DIRECTORS

(As per registry dated 03-11-2012)

 

Name

(Nationality)

 

Address

Peter R. ALTENBURGER

Witellikerweg 21, 8702 Zollikon, Switzerland.

 

Werner Martin LEDERER

Lerchenbergstrasse 92, 8703 Erlenbach, Switzerland.

 

Marc HULLEBROECK

Unit B, 19/F., 3 Repulse Bay Road, Repulse Bay, Hong Kong.

 

 

SECRETARY

 

Not available.  (As per registry dated 03-11-2012)

 

 

HISTORY

 

The subject was incorporated in Switzerland.  It was registered in Hong Kong on 3rd November, 1999.  It has established a principal place of business in Hong Kong as an oversea company under Part XI of the Hong Kong Companies Ordinance.  It has changed its company type to a non-Hong Kong company since 14th December, 2007.

 

The subject was formerly located at Suite 2401-2402, 24/F., Central Plaza, 18 Harbour Road, Wanchai, Hong Kong, moved to Suite 1706, 17/F. of the same building on 5th November, 2001; and further moved back to Suite 2402, 24/F. of the same building in October 2005.

 

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

 

 

OPERATIONS

 

Activities:                      Manufacturing, Sale, Marketing and Distribution.

 

Lines:                           All kinds of chemical agricultural products.

 

Company Employees:    15.

 

Group Employees:         Approx. 5,700.  (As at 31-12-2012)

 

Commodities Imported:   Imported from Europe, India, China, etc.

 

Markets:                       China, Asia-Pacific, Europe, East Africa, Latin America, etc.

 

Group Revenue:-

FY

Whole Group

Agricultural Products

Group

Year ended 31-12-2008

US$3,115.3 million

US$1,058.7 million

Year ended 31-12-2009

US$2,826.6 million

US$1,051.6 million

Year ended 31-12-2010

US$3,116.3 million

US$1,241.8 million

Year ended 31-12-2011

US$3,377.9 million

US$1,464.5 million

Year ended 31-12-2012

US$3,748.3 million

US$1,763.8 million

 

Terms/Sales:                 L/C or as per contracted.

 

Terms/Buying:               As per contracted.

 

 

FINANCIAL INFORMATION

 

Authorised Capital:         CHF 100,000.00

 

Issued & Paid Up Capital: CHF 100,000.00

 

Group Net Income:         US$304.6 million  (Year ended 31-12-2008)

US$228.5 million  (Year ended 31-12-2009)

US$172.5 million  (Year ended 31-12-2010)

US$365.9 million  (Year ended 31-12-2011)

US$416.2 million  (Year ended 31-12-2012)

 

Segment Result (Agricultural Products Group):-

US$245.2 million  (Year ended 31-12-2008)

US$289.0 million  (Year ended 31-12-2009)

US$309.5 million  (Year ended 31-12-2010)

US$348.3 million  (Year ended 31-12-2011)

US$450.7 million  (Year ended 31-12-2012)

 

Profit or Loss:                Business is profitable.

 

Condition:                      Keeping in an active manner.

 

Facilities:                      Making active use of general banking facilities.

 

Payment:                      So far so good.

 

Commercial Morality:     Satisfactory.

 

Banker:                         Citibank N.A., Hong Kong Branch.

 

Standing:                      Very Good.

 

 

GENERAL

 

Founded in 1999, FMC Agricultural Products International AG is also known as FMC Agricultural Products International SA or FMC Agricultural Products International Inc.  Registered as a non-Hong Kong company in Hong Kong, the subject was incorporated in Switzerland.

The subject has got an affiliated company FMC Asia-Pacific Inc. located at the same address.  Incorporated in the United States, FMC Asia-Pacific Inc. was registered on 31st August, 1984 in Hong Kong as a non-Hong Kong company.

The subject’s holding company FMC Corporation [FMC] is a listed firm in the United States.  It has been listed in New York Stock Exchange and Chicago Stock Exchange.  FMC was incorporated in 1928 under Delaware law and has its principal executive offices at 1735 Market Street, Philadelphia, Pennsylvania 19103, the United States.

FMC operates in three distinct business segments: Agricultural Products, Specialty Chemicals and Industrial Chemicals.  Its Agricultural Products segment develops, markets and sells all three major classes of crop protection chemicals – insecticides, herbicides, and fungicides – with particular strength in insecticides and herbicides.  These products are used in agriculture to enhance crop yield and quality by controlling a broad spectrum of insects, weeds and disease, as well as pest control in non-agricultural markets.

FMC has set up offices in Indonesia, Australia, Pakistan, South Korea, Bangladesh, etc.  FMC’s plants are in China (Suzhou, Zhangjiagang of Jiangsu Province, China), Indonesia (Jawa Tengah) and Pakistan (Lahore).  The subject is the Business and Regional Headquarters of the FMC Group.

FMC is one of the world’s foremost, diversified chemical companies with leading positions in agricultural, industrial and consumer markets.  From its inception in 1883, FMC has been providing solutions to the world’s companies and their customers.

In the Agricultural Products Group, FMC Agricultural Products (also known as the Crop Solutions business) provides crop protection and pest control products for worldwide markets.  The Pest Solution business serves the structural pest control, turf and ornamental, and home and garden markets.  Pest management is also about managing business.  That’s why FMC has developed SmartBiz and SmartBiz Mobile to help its clients take care of the business of pest management.  FMC Agricultural Products Group provides cost-effective, superior-performing insecticides (synthetic chemical intermediates) and herbicides (synthetic chemical intermediates) for use on a broad range of crops and pests.  Its products control pests to help farmers maximise yields.  FMC is a leader in developing innovative and unique solutions to its customers toughest pest problems with products such as “Aim®” herbicide, “Capture®” insecticide/miticide and “Mustang Max™” insecticide.

Agricultural Products provides a wide range of proprietary, branded products — based on both patented and off-patent technologies — for global crop protection, professional pest control, and lawn and garden markets.

Insecticides represent the majority of FMC’s sales in the Agricultural Products segment, particularly pyrethroid and carbamate chemistries, in which FMC maintains leading market positions based on revenues.

The Group’s China firms are the following five:-

FMC (Shanghai) Chemical Technology Co. Ltd.

FMC (Shanghai) Commercial Enterprise

FMC (Suzhou) Crop Care Co. Ltd.

FMC Specialty Chemicals (Zhangjiagang) Co. Ltd.

Guangzhou Co-Living International Biology Technology Co. Ltd.

In FY 2012, the Group’s Agricultural Products segment, which represented approximately 47% of its 2012 consolidated revenues, operated in the agrochemicals industry.  This segment develops, manufactures and sells a portfolio of crop protection, professional pest control and lawn and garden products.

Agricultural Products’ portfolio is comprised of three major pesticide categories: insecticides, herbicides and fungicides.  Insecticides represent the largest product line in its Agricultural Products segment, which include its pyrethroid and carbamate chemistries, in which it maintained leading market positions based on revenues.  Its herbicide portfolio primarily targets niche uses and controls a wide variety of difficult-to-control weeds.  In 2011, the Group acquired iprodione and prochloraz fungicides for all agricultural uses outside of Europe.  This acquisition strengthened its fungicide portfolio offerings as these two fungicides are highly effective, resistance management technologies that are used in more than 50 countries, primarily in the tree, fruit and vegetable markets.

The Group accesses key Asian markets either through local independent distributors or its own sales and marketing organizations.

The three principal categories of agricultural and non-crop chemicals are herbicides, representing approximately half of global industry revenue; insecticides, representing approximately a quarter of global industry revenue; and fungicides, representing most of the remaining portion of global industry revenue.

The agrochemicals industry is relatively consolidated.  Leading crop protection companies, Syngenta AG, Bayer AG, Monsanto Company, BASF AG, The Dow Chemical Company and E. I. du Pont de Nemours and Company (DuPont), currently represent approximately 70 percent of the industry’s global sales. The next tier of agrochemical producers include FMC, Makhteshim-Agan Industries Ltd., Sumitomo Chemical Company Limited, Nufarm Limited, Arysta LifeScience Corporation, United Phosphorous Limited and Cheminova A/S. This tier employs various differentiated strategies and compete through unique technologies focusing on certain crops, markets and geographies, and competitive pricing based on low-cost manufacturing positions.

For the year ended 31st December, 2012, revenue of the Group’s Agricultural Products was US$1,763.8 million, an increase of 20.4% versus 2011 (2011: US$1,464.5 million).  The operating profit of this segment was US$450.7 million, grew by 29.4% versus 2011 (2011: US$348.3 million).

In FY 2012, the Group employed approximately 5,700 people, with about 2,700 people in its domestic operations and 3,000 people in its foreign operations.  Approximately 31% of its US-based and 32% of its foreign-based employees, respectively, are represented by collective bargaining agreements.

The Chairman and Chief Executive Officer of the FMC Group is Mr. Pierre Brondeau.  He was appointed on 1st October, 2010 as William G. Walter who is aged 68 retired in early 2010.

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

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.61.46

UK Pound

1

Rs.98.99

Euro

1

Rs.84.72

 

 

INFORMATION DETAILS

 

Report Prepared by :

NIT

 

 

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.