MIRA INFORM REPORT

 

 

Report Date :

10.09.2013

 

IDENTIFICATION DETAILS

 

Name :

SUEZ STEEL CO (SSC)

 

 

Registered Office :

Adabeya Port,  Ataka, PO Box   : 35 Suez

 

 

Country :

Egypt

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

1997

 

 

Com. Reg. No.:

31285

 

 

Legal Form :

Egyptian Joint Stock Company

 

 

Line of Business :

Production and export of steel billets

 

 

No. of Employees :

1,500

 

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)

Egypt

B1

B1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

EGYPT - ECONOMIC OVERVIEW

 

Occupying the northeast corner of the African continent, Egypt is bisected by the highly fertile Nile valley, where most economic activity takes place. Egypt's economy was highly centralized during the rule of former President Gamal Abdel NASSER but opened up considerably under former Presidents Anwar EL-SADAT and Mohamed Hosni MUBARAK. Cairo from 2004 to 2008 aggressively pursued economic reforms to attract foreign investment and facilitate GDP growth. Despite the relatively high levels of economic growth in recent years, living conditions for the average Egyptian remained poor and contributed to public discontent. After unrest erupted in January 2011, the Egyptian Government backtracked on economic reforms, drastically increasing social spending to address public dissatisfaction, but political uncertainty at the same time caused economic growth to slow significantly, reducing the government's revenues. Tourism, manufacturing, and construction were among the hardest hit sectors of the Egyptian economy, and economic growth is likely to remain slow during the next several years. The government drew down foreign exchange reserves by more than 50% in 2011 and 2012 to support the Egyptian pound and the dearth of foreign financial assistance - as a result of unsuccessful negotiations with the International Monetary Fund over a multi-billion dollar loan agreement which have dragged on more than 20 months - could precipitate fiscal and balance of payments crises in 2013.

 

Source : CIA

 


SUMMARY

 

Company Name                                     : SUEZ STEEL CO (SSC)

Country of Origin                                    : Egypt

Legal Form                                            : Egyptian Joint Stock Company

Registration Date                                   : 1997

Commercial Registration Number                        : 31285, Suez

Issued Capital                                        : £E 1,400,000,000

Paid up Capital                                      : £E 1,400,000,000

Total Workforce                                     : 1,500

Activities                                               : Production and export of steel billets

Financial Condition                                 : Good

Payments                                             : Nothing detrimental uncovered

Operating Trend                                     : Steady

 

 

 


COMPANY NAME

 

SUEZ STEEL CO (SSC)

 

 

ADDRESS

 

Registered & Physical Address

 

Location            : Adabeya Port

Area                 : Ataka

PO Box             : 35

Town                 : Suez

Country             : Egypt

 

Telephone         : (20-62) 3230811 / 3230803 / 3230805 / 3230807 / 3230806 / 3230808

Facsimile          : (20-62) 3230804 / 3230816 / 3230800 / 3230802

Mobile               : (20-10) 5439739

Email                : info@suezsteel.com

 

Premises

 

Subject operates from a large suite of offices and production facilities that are owned and located in the Industrial Area of Suez.

 

Branch Office (s)

 

Location                                                                                  Description

 

34 Syria Street                                                                          Rented office premises

3rd Floor, Flat No. 7

Mohandessin

Cairo

Tel: (20-2) 23744108 / 3747109

Fax: (20-2) 37497692

 

112 26th July Street                                                                    Rented office premises

Zamalek

Cairo

Tel: (20-2) 27360715

Fax: (20-2) 27360017

 

 

KEY PRINCIPALS

 

Name                                                                                       Position

 

Gamal El Garhy                                                                         Chairman

 

Rafik El Daw                                                                              Managing Director

 

Abdel Karim Mohamed El Rafaie                                     Director

 

Ashraf Abdel Hamid Abdel Rehim                                                Director

 

Medhat Kabary Abdel Tawab                                                       Director

 

Hesham Bolous El Daw                                                              Director

 

Adel Ahmed El Sebahy                                                              Finance Manager

 

Wael Fathi                                                                                Accounts Manager

 

Mohamed Omara                                                                       Administration Manager

 

Fouda Zaki                                                                                Purchasing Manager

 

Tarek Darwish                                                                            Commercial Manager

 

Sayed Abdel Rahman                                                                 Human Resources Manager

 

Rony Assaf                                                                               Factory Manager

 

Samir Naga                                                                               Consultant

 

 

LEGAL FORM & OWNERS

 

Date of Establishment  : 1997

 

Legal Form                  : Egyptian Joint Stock Company

 

Commercial Reg. No.  : 31285, Suez

 

Authorised Capital       : £E 4,000,000,000

 

Issued Capital              : £E 1,400,000,000

 

Paid up Capital            : £E 1,400,000,000

 

Name of Shareholder (s)                                              Percentage

 

Steel Egypt                                                                       99.9%

Egypt

 

Private investors and businessmen                                        0.1%

 

 

OPERATIONS

 

Activities: Engaged in the production and export of steel billets.

 

It is reported that the Egyptian steelmaker Suez Steel Co has started the test run of its new reinforcing steel rolling mill with an annual production capacity of 550,000 mt of long products.

 

The construction of the new reinforcing steel rolling mill, located in Ataka industrial zone in Suez,     amounted to £E 620 million and is expected to provide 500 new jobs. The mill's production will be directed            to the Egyptian domestic market, which sees a strong demand for reinforcing steel products.

 

The new rolling mill is part of the Suez Steel's comprehensive developments plan, which includes also the    construction of a new direct reduction mill with an annual capacity of 1.95 million mt, expected to start production in 2011, and the construction of a new steel billets mill with a capacity of 2.06 million mt, which will also come on stream in 2011. The total cost of the company's expansion project will amount to £E 6 billion.

 

Production Capacity: 50,000 tonnes per month

 

Import Countries: Turkey, Italy, China, South Korea, United States, Canada, Australia, Switzerland and Germany

 

Export Countries: Jordan, United Arab Emirates, Sudan. Lebanon, Argentina and Saudi Arabia

 

Operating Trend: Steady

 

Subject has a workforce of approximately 1,500 employees.

 

 

FINANCIAL DATA

 

Financial highlights provided by local sources are given below:

 

Currency: Egyptian Pounds (£E)

 

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

 

Total Sales                                £E 2,916,161,610                       £E 3,264,740,346

 

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

 

The above financial figures are based on estimations by our local sources.

 

 

BANKERS

 

National Bank of Egypt

24 Sherif Street

Cairo

Tel: (20-2) 23924175

Fax: (20-2) 23924143

 

Banque du Caire SAE

22 Adly Street

PO Box: 1495

Cairo

Tel: (20-2) 23904554

Fax: (20-2) 23908992

 

BNP Paribas Egypt

4A Ibn Zinky Street

Zamalek

Cairo

Tel: (20-2) 27377791 / 27377792

Fax: (20-2) 27377793

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

Date of transaction                                 January 2006                             October 2007

Credit amount                                        69,000                                      100,000

Amount overdue                         0                                              0

Payment terms                                      90 days                                     60 days

Payment Method                                   Letters of Credit                         Letters of Credit

Paying record                                        No Complaints                           No Complaints

Currency                                               Pounds Sterling                         US Dollars

 

 

GENERAL COMMENTS

 

According to local sources, subject enjoys a good reputation for the quality of its products with nothing detrimental uncovered regarding the manner in which operations are conducted. As such the company is considered to be a fair trade risk.

 

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.96

UK Pound

1

Rs.102.91

Euro

1

Rs.86.58

 

 

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%)

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.