MIRA INFORM REPORT

 

 

Report Date :

06.04.2014

 

IDENTIFICATION DETAILS

 

Name :

Posco Chemtech Co Limited

 

 

Formerly Known As :

POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(POSREC)

 

 

Registered Office :

110, Sinhang-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea, Zip Code 790-836

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2013

 

 

Date of Incorporation :

13.05.1971

 

 

Com. Reg. No.:

506-81-01452

 

 

Legal Form :

Listed Company

 

 

Line of Business :

·         Manufacturing and selling of general refractories, building and repairing furnaces

·         Subject also engaged in environmental business

·         Manufacturer of Other Refractory Ceramic Products

 

 

No. of Employees

1,350

 

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 – december 01, 2013

 

Country Name

Previous Rating

(30.09.2013)

Current Rating

(01.12.2013)

South Korea

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 


 

SOUTH KOREA - ECONOMIC OVERVIEW

 

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy. In the 1960s, GDP per capita was comparable with levels in the poorer countries of Africa and Asia. In 2004, South Korea joined the trillion dollar club of world economies, and is currently the world's 12th largest economy. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods, and encouraged savings and investment over consumption. The Asian financial crisis of 1997-98 exposed longstanding weaknesses in South Korea's development model including high debt/equity ratios and massive short-term foreign borrowing. GDP plunged by 6.9% in 1998, and then recovered by 9% in 1999-2000. Korea adopted numerous economic reforms following the crisis, including greater openness to foreign investment and imports. Growth moderated to about 4% annually between 2003 and 2007. Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching 6.3% growth in 2010. The US-South Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Throughout 2012 and 2013 the economy experienced sluggish growth because of market slowdowns in the United States, China, and the Eurozone. The administration in 2014 is likely to face the challenge of balancing heavy reliance on exports with developing domestic-oriented sectors, such as services. The South Korean economy's long term challenges include a rapidly aging population, inflexible labor market, and heavy reliance on exports - which comprise about half of GDP.

 

Source : CIA

 


Basic

 

Company Name

POSCO CHEMTECH CO., LTD.

 

((Ex. Company Name : POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(POSREC, “()포스렉”))

 

(Korean Company Name : “()포스코켐텍”)

Registered Address

110, Sinhang-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

Zip Code

790-836

Tel

+82-54-290-0114

Fax

+82-54-292-3417

E-mail

posrecweb@posrec.co.kr;think99@posrec.co.kr

Website

www.posrec.co.kr

Trading Address

110, Sinhang-ro, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea

(Old Address System : 1-143, Cheongnim-dong, Nam-gu, Pohang-si, Gyeongsangbuk-do, Korea)

Tel

+82-54-290-0114

Fax

+82-54-292-3417

Other Address-Gwangyang Office

1657-2, Taein-dong, Gwangyang-si, Jeollanam-do, Korea

Tel

+82-61-792-0610~1

Fax

+82-61-792-8560

Type

Export

Industry

·         Manufacturing and selling of general refractories, building and repairing furnaces

·         Subject also engaged in environmental business

·         Manufacturer of Other Refractory Ceramic Products

  Main Business

Shaped Refractory, Unshaped Refractory, Clinkers

  Sub Business

Construction of Industrial Plants

Established (mm/dd/yyyy)

05/13/1971

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Refractory bricks(31371100)

Sell

Refractories(31370000)

 

 

CEO’s

 

Name

Kim Jin-Il

Date of Birth

02/01/1953

Title

President & CEO

Sex

Male

Nationality

Korean

 

Profiles

 

Capital (KRW)

29,535,000,000

Employees

1,350

Formation

Listed Company(KOSDAQ : 003670) as of 10/31/2001

A Company of POSCO Group

Bank Details

Busan Bank-Pohang Branch

Citibank, Korea

Corporate Registered No.

174611-0001947

Business Registered No.

506-81-01452

Permit & Licenses

Int’l Trade No.: 553942

Shareholder Position

Name

Shares

%

POSCO(174611-0000741)

3,544,200

60.00

NATIONAL PENSION SERVICE(110171-0007134)

401,507

6.80

POSTECH(174631-0000129)

295,350

5.00

OTHERS

1,665,943

28.20

TOTAL

5,907,000

100.00

Company History

05/13/1971 Incorporated as POHANG Industrial Furnace Co., Ltd.

03/1987 Changed company name to Pohang Furnace Co., Ltd.

04/1993 Changed company name to Geoyang Furnace Co., Ltd.

12/1994 Acquired Samhwa Hwasung Co., Ltd., and changed company name to POSCO Furnace Equipment Co., Ltd.

04/2001 Changed company name to POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(POSREC)

03/19/2010 Changed company name to the present name

 

 

 

 

Management

 

Job Description

Title

Name

Nationality

Date of Birth

Education

President & CEO

Mr.

Kim Jin-Il

Korean

1953.02.01

Seoul National University, Korea

Director

Mr.

Yoon Dong-Joon

Korean

1958.10

Sungsil University, Korea

Executive Director

Mr.

Noh Min-Yong

Korean

1963.10

Busan National University, Korea

Auditor

Mr.

Lee Jong-Duck

Korean

1958.10

Youngnam University, Korea

 

 


Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)2013

1,280,591,023,948

588,670,352,655

59,953,187,055

(*)2012

1,292,356,397,163

533,401,758,480

78,553,652,845

(*)2011

1,186,622,662,490

479,615,361,821

92,391,379,400

2010

756,053,098,966

355,865,343,802

56,082,879,935

2009

574,400,917,130

257,455,235,344

33,089,195,425

2008

446,939,291,376

233,414,681,198

25,180,724,257

2007

290,199,319,851

174,308,257,280

16,899,406,721

2006

268,957,364,912

155,513,726,878

14,297,348,736

2005

250,179,952,576

146,321,713,013

16,607,215,385

(*)Figures are based on the K-IFRS Accounting System.

 

 

Financial Description

 

Authorized Capital(KRW)

100,000,000,000

Paid-Up Capital(KRW)

29,535,000,000

Total Issued Shares

5,907,000

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Total Assets

588,670,352,655

533,401,758,480

479,615,361,821

Current Assets

315,346,489,004

361,330,587,059

367,947,745,964

Cash & Cash Equivalents

80,283,803,712

62,710,426,259

55,629,308,660

Current Financial Instruments

48,264,127,485

73,267,456,950

81,244,866,888

Trade Receivables

114,958,198,178

146,192,819,188

146,645,239,093

Inventories

71,008,533,552

78,314,716,786

75,765,947,396

Other Current Assets

831,826,077

845,167,876

8,662,383,927

Non-Current Assets

273,323,863,651

172,071,171,421

111,667,615,857

Tangibles

105,054,591,669

94,209,446,359

85,749,594,041

Intangibles

11,267,886,271

7,491,836,574

5,559,472,309

Investment_Subsidiaries

147,268,998,352

61,610,607,452

12,359,767,749

Other Financial Assets

8,065,491,086

8,504,043,570

6,757,571,487

Trade Receivables

89,199,914

 

 

Investment_Real Estates

223,104,466

223,104,466

255,203,310

Other Non-Current Assets

1,354,591,893

32,133,000

986,006,961

Total Liabilities

139,398,623,927

134,297,734,078

152,416,420,808

Current Liabilities

128,985,328,052

120,005,589,194

137,626,546,112

Trade Payables

80,762,548,173

84,936,122,418

92,422,344,150

Debentures

50,000,000

50,000,000

50,000,000

Other Current Financial Debts

23,890,348,678

15,948,048,448

18,131,273,067

Accrued Income Tax

11,173,544,156

12,068,158,605

19,145,493,367

Provisions

785,143,300

853,038,379

 

Other Current Liabilities

12,373,743,745

6,200,221,344

7,877,435,528

Non-Current Liabilities

10,413,295,875

14,292,144,884

14,789,874,696

Confirmed Salaries

 

4,678,510,653

4,404,415,953

Deferred Income Tax Credit

6,001,179,710

6,425,427,417

7,518,681,266

Other Non-Current Financial Debts

4,362,116,165

3,038,206,814

2,866,777,477

Provisions

 

100,000,000

 

Capital Stock

29,535,000,000

29,535,000,000

29,535,000,000

Capital Surplus

21,132,372,492

23,650,207,758

23,650,207,758

Profit Surplus

398,604,356,236

345,918,816,644

274,013,733,255

Total Equity

449,271,728,728

399,104,024,402

327,198,941,013

Liab. & Shareholder’s Equity

588,670,352,655

533,401,758,480

479,615,361,821

 

 

Income Statement

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Sales

1,280,591,023,948

1,292,356,397,163

1,186,622,662,490

Cost of Sold Goods

1,148,716,473,571

1,140,194,835,593

1,015,051,985,792

Gross Profit

131,874,550,377

152,161,561,570

171,570,676,698

Admin. Expenses

51,300,068,620

54,178,929,759

46,208,994,943

Selling Expenses

3,779,238,218

4,579,889,462

4,925,207,591

Operating Income

76,795,243,539

93,402,742,349

120,436,474,164

Other  Income

2,447,388,527

3,361,655,919

2,145,154,005

Other Expenses

3,529,575,216

2,321,293,207

5,516,817,413

Finance Income

3,654,266,512

7,469,155,800

5,874,183,536

Finance Expenses

1,008,864,607

1,449,613,708

1,529,558,975

Income Before Taxes

78,358,458,755

100,462,647,153

121,409,435,317

Income Taxes Expenses

18,405,271,700

21,908,994,308

29,018,055,917

Net Income

59,953,187,055

78,553,652,845

92,391,379,400

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2013

As of 12/31/2012

As of 12/31/2011

Operating Activities Cash Flows

116,305,972,816

66,035,350,508

90,484,782,555

Cash Flows from Operating

132,966,332,293

90,344,969,316

104,780,546,624

Net Income

59,953,187,055

78,553,652,845

92,391,379,400

Adjustment

40,962,135,246

34,949,550,435

41,355,100,625

Changes in Asset/ & Liability

32,051,009,992

-23,158,233,964

-28,965,933,401

Interests Received

3,396,031,507

4,978,387,108

4,055,799,476

Interests Paid

-98,971,094

-87,796,984

-3,851,877

Dividends Received

275,250,000

642,619,623

255,426,074

Income Taxes

-20,232,669,890

-29,842,828,555

-18,603,137,742

Cash Flows from Investing

-83,250,245,018

-53,331,878,909

-68,172,148,282

Cash Inflow from Investing

74,154,516,114

142,096,568,520

153,463,045,705

Cash Outflows for Investing

-157,404,761,132

-195,428,447,429

-221,635,193,987

Cash Flows from Financing

-15,478,834,000

-5,622,354,000

-5,907,000,000

Cash Inflows from Financing

 

3,287,014,884

 

Cash Outflows from Financing

-15,478,834,000

-8,909,368,884

-5,907,000,000

Increase/Decrease in Cash

17,576,893,798

7,081,117,599

16,405,634,273

Cash at the Beginning of Year

62,710,426,259

55,629,308,660

39,256,659,954

Cash at the End of Year

80,283,803,712

62,710,426,259

55,629,308,660

 

 

Products, Technologies, Services Description

 

Main Products & Services

Manufacturing and selling of general refractories, building and repairing furnaces

 

Subject also engaged in environmental business

 

Manufacturing Refractories

* Basic Refractories (135 excluding MgO-C Bricks)

* Clinkers (5 excluding SSMD)

* Unshaped Refractories (53 excluding Spray type)

* Acid, neutral and special Refractories

 

Maintenance work for Steel Mill Industrial Furnaces

* Repairing Blast Furnaces(Dismantling, blasting and building works)

* Designing and manufacturing various industrial furnaces

 

Engineering and manufacturing various industrial furnaces

* Furnaces for the still industry : Heating Furnaces, Heat   Treatment Furnaces

* Furnaces for non-ferrous metals : Melting Furnaces, Plating   Furnaces

* Furnaces for the ceramic industry : S/K, T/K,RHK, Super high   temperature Firing Furnaces

*Incinerators : Ash Melting Incinerators

 

Environment enhancement products

* SSEFREMA : Anti Red Tide chemicals and marine sediment improvement chemicals

* SUMAG : Acidic waste water neutralizer

* GUNMAG : Air environmental chemicals

* WATRAMAG : Water treatment additives

* Flue-gas desulfurization facilities : Flue-gas desulfurization facilities manufacturing and work

 

Fertilizers

* ALGAEMAG : Algae elimination additives (rivers, lakes)

* MAGVITA : Hydroxide dolomitic fertilizer

 

Inorganic additives

* Non-flammable additives, Ferrite

 

Brand Name : MgO-C

 

 

Trade Partners & Competitors

 

Customers

POSCO(174611-0000741)

Competitors

CHOSUN REFRACTORIES CO.,LTD.(201111-0000440)

DONGKUK REFRACTORIES & STEEL CO., LTD.(195511-0069249)

KOREA REFRACTORIES CO.,LTD.(184611-0000319)

 

 

Related Parties

(Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

POSCO(174611-0000741)

POSCO COATED & COLOR STEEL CO., LTD.(174611-0006492)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSDATA CO., LTD.(110111-0658637)

POSCO REFRACTORIES & ENVIRONMENT CO., LTD.(174611-0001947)

SAMJUNG PACKING AND ALUMINUM CO., LTD.(174611-0000866)

POS-A.C. CO., LTD.(174611-0003448)

POSCO ENGINEERING & CONSTRUCTION CO., LTD.(174611-0002979)

POSCO RESEARCH INSTITUTE(110111-1042350)

POSTEEL(110111-0344591)

POSCO SPECIALTY STEEL CO., LTD. (194211-0025248)

POSMEC(POSCO MACHINERY & ENGINEERING CO., LTD.)(174611-0012176)

POSCO TERMINAL CO., LTD.(204611-0017575)

POSTECH VENTURE CAPITAL COOPERATION (174611-0029080)

POSMATE CO., LTD.(110111-0739841)

POSCO POWER CORPORATION(110111-1829576)

SNNC CO., LTD.(204611-0023415)

PHP CO., LTD.(120111-0421545)

POSBRO(110111-3528986)

SUWON GREEN ENVIRONMENT CORPORATION(134811-0133794)

POSCORE CO., LTD.(134811-0003343)

RIZTECH BIZ CO., LTD.

POSWITH CO., LTD.(171711-0075927)

P&R CO., LTD.

UITRANS CO., LTD.(110111-3792309)

BASYS INDUSTRY CO. LTD.(110111-0954647)

UNIVERSAL STUDIOS RESORT DEVELOPMENT CORPORATION(134811-0167222)

METAPOLIS CO., LTD.(134811-0094475)

SEOUNG GWANG CO., LTD.(120111-0222844)

CHEONGNA IBT CO., LTD.(120111-0454520)

POHANG FEUL CELL CO., LTD.(171711-0076256)

MEGA ASSET  CO., LTD.(161511-0097480)

DAEWOOENGINEERING COMPANY CO., LTD.(110111-0203268)

 

(*)The below companies has been newly joined as affiliated companies to POSCO GROUP in 2010.

POS ECO HOUSING CO., LTD.( 171711-0085893)

DAKOS CO., LTD.(131111-0246297)

MAPO HYBROAD PARKING CO., LTD.(110111-4250140)

GWANGYANG FSC CO., LTD.(204611-0031385)

POSPLATE CO., LTD.(204611-0031252)

POS CALCIUM CO., LTD.(171711-0086180)

(70.0% held by the subject company)

Joint Venture

YOUNGKU POCHEOL FURNACE EQUIPMENT CO., LTD.(CHINA)

(25.0% held by the subject company)

 

YONYEONG YOUNGWON POCHEOL FURNACE CO., LTD.(CHINA)

(35.0% held by the subject company)

 

JANGAHANG POHANG FURNACE EQUIPMENT CO., LTD.(CHINA)

(50.0% held by the subject company)

Subsidiary

POSCALCIUM COMPANY, LTD.(171711-0086180)

POSGREEN COMPANY, LTD(204611-0032466)

PT.KRAKATAU POSCO CHEMTECH CALCINATION(INDONESIA)

PT.KRAKATAU POS-CHEM DONG-SUH CHEMICAL(INDONESIA)

YOUNGKU POHANG TRADE(YPT)CO., LTD.(CHINA)

 

 

Sales by Region

(Activity & Markets)

 

Sales/ Unit :Mil KRW

09/2011

2010

2009

Export

28,158

11,866

11,202

Domestic

840,340

744,187

563,199

Total

868,498

756,053

574,401

 

The Subject exports to China and Japan. It also imports from China.

 

 

Court Action

 

No.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.32

UK Pound

1

Rs.100.04

Euro

1

Rs.82.65

                

INFORMATION DETAILS

 

Analysis Done by :

SUB

 

 

Report Prepared by :

MNL

               

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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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.