MIRA INFORM REPORT

 

 

Report Date :

23.04.2014              

 

IDENTIFICATION DETAILS

 

Name :

AJAY SQM CHILE S.A.

 

 

Registered Office :

Presidente Eduardo Frei Montalva 4900 Renca Santiago

 

 

Country :

Chile

 

 

Date of Incorporation :

21.11.1990

 

 

Legal Form :

Joint-Stock Company

 

 

Line of Business :

Manufacture of chemicals made of iodine (iodate iodide and compounds) and byproducts, including methyl iodide, potassium iodide, calcium iodide, copper iodide, among others

 

 

No. of Employees

50

 

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 31, 2014

 

Country Name

Previous Rating

(31.12.2013)

Current Rating

(31.03.2014)

Chile

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

High Risk

 

C2

Very High Risk

 

D

 


 

CHILE ECONOMIC OVERVIEW

 

Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy that have given it the strongest sovereign bond rating in South America. Exports of goods and services account for approximately one-third of GDP, with commodities making up some three-quarters of total exports. Copper alone provides 19% of government revenue. From 2003 through 2013, real growth averaged almost 5% per year, despite the slight contraction in 2009 that resulted from the global financial crisis. Chile deepened its longstanding commitment to trade liberalization with the signing of a free trade agreement with the US, which took effect on 1 January 2004. Chile has 22 trade agreements covering 60 countries including agreements with the European Union, Mercosur, China, India, South Korea, and Mexico. Chile has joined the United States and nine other countries in negotiating the Trans-Pacific-Partnership trade agreement. The Chilean Government has generally followed a countercyclical fiscal policy, accumulating surpluses in sovereign wealth funds during periods of high copper prices and economic growth, and generally allowing deficit spending only during periods of low copper prices and growth. As of 31 December 2012, those sovereign wealth funds - kept mostly outside the country and separate from Central Bank reserves - amounted to more than $20.9 billion. Chile used these funds to finance fiscal stimulus packages during the 2009 economic downturn. In May 2010 Chile signed the OECD Convention, becoming the first South American country to join the OECD

 

Source : CIA

 

 

 


Company name and address

 

IDENTIFICATION

CORRECT COMPANY NAME

AJAY SQM CHILE S.A.

TRADE NAME

AJAY-SQM GROUP

TAXPAYER REGISTRATION

RUT 96592180K

MAIN ADDRESS

Presidente Eduardo Frei Montalva 4900 Renca

DEPT/PROV/REGION/STATE

Santiago

COUNTRY

CHILE

TELEPHONE

(562) 24437110

CORPORATE E-MAIL

ajaysqmchile@ajay-sqm.cl

COMMENTS

 

FAX: 562-4437114

 

 

EXECUTIVE SUMMARY

Date of foundation

1990

Capital stock

US$5,313,794.= Dollars

permanent employees

50

Chief Executive

COVARRUBIAS GIORDANO, PATRICIO

Disposition

Moderate. Some data and figures were confirmed.

Payments policy

Without rating (No payment experience traced)

Number of times that this company was required: 2

 

 

REPUTATION

NOTHING AGAINST COMPANY

 

 

LEGAL STRUCTURE

LEGAL STATUS

Joint-Stock Company

 

 

DATE OF INCORPORATION

21NOV1990

PLACE OF REGISTRY

Santiago

 

 

NOTARY OFFICE

No 43, Juan Ricardo San Martín

DURATION

Indefinite

INITIAL CAPITAL

Ps$1,000,000.= Pesos.

 

 

CURRENT PAID-IN CAPITAL

US$5,313,794.= Dollars

CURRENT EXCHANGE RATE (US$)

Ps$553.38 Pesos per USD1

 

 

COMMENTS

 

Founded in 1990 as INDUSTRIAS QUIMICAS DE YODO S.A.

Its constitution was published in the Official Journal DO 24/11/1990 .

 

By public deed the company Sociedad Química y Minera de Chile S.A., based in alle Moneda No. 970, piso 15, Santiago and Soquimich European Holdings B.V., based in Hoogoorddreef No. 66, piso 7, Amsterdam, Holland, and for these purposes , in Avda . Libertador Bernardo O'Higgins No. 949 , piso 24 , Santiago , constitued closed company under the name of "Industrias Químicas de Yodo S.A." which may also act with acronym " INQUIM SA ". It is provided that the Registrar of companies will be the city of Santiago without prejuices, special addresses of agencies, branches and offices to be specified in other parts of the country or abroad. Duration of this society will be indefinite from this date. Management company shall be exercised by Board of 3 members. Capital stock of Ps $ 1,000,000 - . divided into 1,000 shares of no par value , of the same series without privileges or preferences is fully subscribed and paid in cash and in appropriate proportions. Other provisions are contained in extracted Deed - . Santiago , 21.11.90.- J.R. San Martín U. N.P

 

On 26/09/2011 changed its name to the current one AJAY SQM CHILE S.A.

 

 

DIRECTORS - EXECUTIVES – SHAREHOLDERS

FULL NAMES / COMPANY NAME

TITLE

%PART.

SINCE

COVARRUBIAS GIORDANO, PATRICIO

General Manager

OLGUIN KIEL, NICOLAS

Admin. & Finance Manager

VELASCO, VICTOR

Foreign Trade Manager

SOCIEDAD QUIMICA Y MINERA DE CHILE S.A.

Shareholder / Member

Yes

 

 

BUSINESS HISTORY

They are part of the Group " AJAY SQM ", global leader in its three core business area: Specialty Plant Nutrition, Iodine and Lithium , with operations in more than 20 countries.

 

The Group has its origins in 1972 by Abner Tower and John Trotter . The chemist and the top sales executive , Tower and Trotter respectively, saw a business opportunity with a better technology based on element iodine to dry - oxidation process in the U.S. textile industry . Beginning with potassium iodate as oxidizing element , the two men launched a company that grew from experiments in the kitchen of John Trotter to be one of the world leaders of Iodine based chemistry .

 

As the pharmaceutical and industrial use of Iodine grew in Europe, Ajay Chemical expands its production and distribution capacity. In 1992 the company built its second production and distribution - . Ajay Europe Sarl . Located in Evron , France - to supply the European market , Middle East and Africa.

 

In 1995 Iodine consumption increases to the point that the availability of iodine limits the growth of the mass. To ensure a reliable supply of iodine Ajay Chemical enters into a Joint Venture with Sociedad Quimica y Minera de Chile SA ( SQM ) , owners of the world's largest reserves of iodine that are known. In partnership with the plant producing iodine derivatives of SQM located in Santiago de Chile. To Ajay - SQM Group adds Ajay SQM Chile becoming the largest consumer of iodine and the largest producer of iodine derivatives in the world. With the purchase of DSM Minera in 2006 from its plant in iodine derivatives in northern Chile, is added the fourth production center to Ajay - SQM Group . Using a dedicated supply of the world's largest producer of iodine, Ajay - SQM Group combines the supply of iodine, fine chemical experience in multiple production centers with a wide distribution network capable of providing to the world market a comprehensive suite of products derived from iodine .

 

Today, the group Ajay_SQM still maintains leadership with a strong supply and quality products. In 2007, the group goes a step further by introducing Iodeal ® brand products, which represents the company's commitment to its customers. The Iodeal ® brand is essentially a guarantee to customers that any product released under this label are manufactured under processes, standards and consistent quality, no matter which plant group has been manufactured. The company goal is simple: To provide our valued customers the peace of mind that  iodinated derivatives which are based on the success of its business, have been manufactured with the greatest care and dedication.

 

RELATED COMPANIES TO SUBJECT COMPANY OR TO MAJORITY SHAREHOLDER

COMPANY NAME

COUNTRY

TAX REG.

RELATION %

SOQUIMICH COMERCIAL S.A.

CHILE

(AC) 797681709

Related

SQM ARGENTINA S.A.

ARGENTINA

Related

SQM BELGICA

BELGIUM

Related

SQM ECUADOR S.A.

ECUADOR

(AC) 1791278127001

Related

SQM FRANCE S.A.

FRANCE

Related

SQM INDUSTRIAL S.A.

CHILE

(AC) 799471000

Related

SQM PERU S.A.

PERU

(BO) 20144118872

Related

 

 

BUSINESS

SIC Classification
T - PROD. QUIMICOS- PLASTICOS- VETERINARIOS-AGROQUIMICOS (Industria quimica en general, Produccion y comercializacion de plasticos y derivados, Veterinarios y agroquímicos, Reactivos)

Main activity

Manufacture of chemicals made of iodine (iodate iodide and compounds) and byproducts, including methyl iodide, potassium iodide, calcium iodide, copper iodide, among others.

O P E R A T I O N S

Import

Yes

Country

USA, Germany

ANNUAL Imports In US$ (CIF)

YEAR

AMOUNT

2013

2,428,403.41

2012

3,616,789.03

2011

3,804,500.02

2010

5,507,703.46

Export

Yes

COUNTRY

China, Korea, Japan, Argentina, Colombia, Dominican Republic.

Annual exports in US$ (FOB)

YEAR

AMOUNT

2014

2,310,198.00

2013

41,062,970.90

2012

48,231,101.30

2011

35,363,939.44

2010

22,217,413.57

% Credit SALES / Terms

100% within 30 days

% Ventas exterior (Paises)

98%

SELLING TerritorY

Domestic and foreign markets

EMPLOYEES

50

LOCATION

PREMISES

Own Settled

AREA

4,103 m2

Comments

 

Main clients:

- SOCIEDAD QUIMICA Y MINERA DE CHILE S.A. (Related company),

- ELECTROQUIMICA WEST S.A       (Colombia),

- INFEREX SA (Colombia).

 

Certifications: ISO 9001:2000

 

FINANCIAL INFORMATION

Disposition

B: Moderate. Some data and figures were confirmed.

Interviewee(s)

Nicolás Olguin

Position(s)

Administration and Finance Manager

Information provided

Very kindly collaborated with the general and operational data of the company. They indicate sales increased to approximately 70,000,000.00 dollars in 2013.

 

Further information was gathered from research conducted by external sources.

 

SALES

US$ 0.00 ()

FINANCIAL SITUATION

B: FAIR

Despite not having available financial statements, they report that the company has financial support of its owners. It is known that the company operates without problems.

 

Sales History in US$ (of Balance Sheet, statement of third parties)

Date

Sales (US$)

31/12/2013

70,000,000.00

 

INSURANCE

COMPANY

AGAINST

RCA (ANTES ROYAL)

All risk

Main fixed assets of the company (general detail)

 

Coverage: Fixed assets, among other. Floating policy.

 

 

TRADE REFERENCES, CREDIT BUREAU, LAWSUITS, BANKS

(Confidential Information)

TRADE REFERENCES

Note : Other suppliers did not provide information or could not be consulted

Supplier

Country

SOCIEDAD QUÍMICA Y MINERA DE CHILE S.A.

CHILE

 

Comments :

It works with the following banks: BANCO CITI NUEVA YORK BANCO BCI BANCO DE CHILE

 

 

GENERAL INFORMATION

Explanation about commercial reputation

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.60.71

UK Pound

1

Rs.102.04

Euro

1

Rs.83.77

 

INFORMATION DETAILS

 

Analysis Done by :

DIV

 

 

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%)

 

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.