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Report Date : |
17.09.2013 |
IDENTIFICATION DETAILS
|
Name : |
STEELMAKERS
ZIMBABWE (PTY) LTD. |
|
|
|
|
Registered Office : |
120 Old Steelworks
Road, Heavy Industrial Zone Redcliff |
|
|
|
|
Country : |
Zimbabwe |
|
|
|
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Date of Incorporation : |
01.01.1996 |
|
|
|
|
Legal Form : |
Company limited by
shares |
|
|
|
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Line of Business : |
Manufacture of
basic iron and steel and of ferro-alloys. |
|
|
|
|
No. of Employees : |
600 |
RATING & COMMENTS
|
MIRA’s Rating : |
B |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
Status : |
Moderate |
|
Payment Behaviour : |
Unknown |
|
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) |
|
Zimbabwe |
D |
D |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
ZIMBABWE - ECONOMIC OVERVIEW
Zimbabwe's economy is growing despite continuing political uncertainty. Following a decade of contraction from 1998 to 2008, Zimbabwe's economy recorded real growth of more than 9% per year in 2010-11, before slowing to 5% in 2012, due in part to a poor harvest and low diamond revenues. However, the government of Zimbabwe still faces a number of difficult economic problems, including infrastructure and regulatory deficiencies, ongoing indigenization pressure, policy uncertainty, a large external debt burden, and insufficient formal employment. Zimbabwe''s 1998-2002 involvement in the war in the Democratic Republic of the Congo drained hundreds of millions of dollars from the economy. The government''s subsequent land reform program, characterized by chaos and violence, badly damaged the commercial farming sector, the traditional source of exports and foreign exchange and the provider of 400,000 jobs, turning Zimbabwe into a net importer of food products. Until early 2009, the Reserve Bank of Zimbabwe routinely printed money to fund the budget deficit, causing hyperinflation. Dollarization in early 2009 - which allowed currencies such as the Botswana pula, the South Africa rand, and the US dollar to be used locally - ended hyperinflation and reduced inflation to about 10%, but exposed structural weaknesses that continue to inhibit broad-based growth.
Source
: CIA
Steelmakers Zimbabwe
(Pty) Ltd.
ADDRESSES:
Main Address: 120
Old Steelworks Road, Heavy Industrial Zone
Zip code/City: Redcliff,
Zimbabwe
Telephone: +263
55 62349
+263
55 68744
Mobile: +263
772 155805
Web site: http://www.steelmakers.com/
WIN Worldbox No.: ZW0000020871
Profile
Established: 1996
Line of Business: Metal/steel
Industry Division: Manufacturing
Industry-code
(NACE): 2410 Manufacture of basic iron
and steel and of ferro-alloys
Banks: unknown
Employees: 600
Board of Directors:
General
Director Kalpesh Patel ,
Residential address: Kenya
General Manager Alexander Johnson
Director Rasik Kumar Dhaybha Patel
Public information:
-
SHARE & SHARE
CAPITAL INFORMATION
Legal form: Company
limited by shares
Incorporation date: 01.01.1996
Balance sheet filing
date: -
Tax Contributor
Number (CNPJ): -
Legal status: active
Responsible
Register: State Register of Zimbabwe
Entry Deleted Name
active
Steelmakers Zimbabwe (Pty)
Ltd.
Entry Deleted Address
active Old
Steelworks Road, Redcliff, Zimbabwe/ZW
Import and
Export:
Import
Payment history:
No experiences on
record.
Owners/-s:
Class: 100%
Name: Steelmakers
Limited
City/Country: Nairobi/Nairobi, Kenya/KE
Interest: 100,00% voting right, 100,00%
capital interest
As per own statement
is subject matter a subsidiary of Steelmakers Ltd. of Kenya. Mr. Patel is also
the managing director of Steelmakers Ltd. of Kenya and does not stay in
Zimbabwe.
Financial
information:
Upon direct approach
it proved impossible to obtain further details.
The general
director, Mr. Patel, is based in Kenya; the general manager, Mr. Johnson, is
based in Redcliff, but declined to make any statements.
Exchange rate:
US$
1,00 =
ZWD 373 - Official rate on 11.09.2013
ADDITIONAL INFORMATION
Main Activities:
The company is
engaged in the manufacture of and trade in steel products.
Customers reportedly
include Zimplow, Steelbase, Monarch Steel, Zimasco and J Mann.
Operations &
branches:
At the Old
Steelworks Road, Heavy Industrial Zone, Redcliff we find the seat of
operations.
Staff:
600
Credit to the
recommended limit should be acceptable but should be monitored on a regular
basis. However, it is accepted practice to seek (bank) guarantees when dealing
with Zimbabwean importers.
News
December 2009:
It is reported that
Zimbabwe government has approved a special grant for Steelmakers Zimbabwe
(Private) Limited to venture into coal mining in Chiredzi to boost the
company's sponge iron project in Masvingo.
In a statement, the
steel company said that the government, through the ministry of mines and
mining development, had approved that the company embark on coal mining in
Chiredzi in terms of Section 301 of the Mines and Minerals Act (Chapter 21:05).
It added that
"It is hereby notified that the minister of mines and mining development
with the authority of the President has issued Special Grant No 4417 to
Steelmakers Zimbabwe (Private) Limited."
Steelmakers said the
Chiredzi mine covers approximately 2550 square kilometers and according to
explorations done, the mine has a lifespan of 100 years.
The company said the
Special Grant approval was a relief to its operations in Masvingo that had been
suspended due to erratic or non delivery of coal.
Mr Alexander Johnson
group GM of Steelmakers Zimbabwe (Private) Limited described the coal mining
project as a demonstration of the company's management philosophy of finding
solutions to problems. He added that "When we are confronted with problems
we don't just sit and cry about them, but we find solutions. Our operations in
Masvingo were facing collapse because of serious coal shortages and we could
not afford to lose that investment. So we had to go out and find the
coal."
Mr Johnson said due
to limited supply of coal some local companies faced viability constraints. He
added that "In the process of finding solutions to problems, Steelmakers
is now helping other companies because the excess requirement is sold on the
local market. We are helping other industries in Zimbabwe who are seriously in
need of coal for their operations to continue running."
Presently, 90000
tonnes of sponge iron per year were being produced by the company in Masvingo.
August 2009:
Harare —
STEELMAKERS, the second largest steel producer in the country, has invested
US$200 million in its plant in a bid to increase production from 15 percent to
40 percent.
The company's group
general manager, Mr Alexander Johnson said Steelmakers now had enough equipment
to revive Ziscosteel. "We have acquired the state-of-the-art equipment
from India and South Africa which have a capacity to increase production capacity.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.48 |
|
|
1 |
Rs.99.66 |
|
Euro |
1 |
Rs.83.50 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.