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Report Date : |
06.06.2014 |
IDENTIFICATION DETAILS
|
Name : |
STYRON (HONG
KONG) LTD. |
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Formerly Known as : |
Dow Chemical (Hong
Kong) Ltd. |
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Registered Office : |
40-50 Tsing Yi Road, Tsing Yi, New Territories |
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Country : |
Hong Kong |
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Date of Incorporation : |
14.09.1973 |
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Com. Reg. No.: |
04124462 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturer, Exporter and Wholesaler of Polystyrene which is used in a range of products including Toys, Household Electric Appliances, Electronics, Cassette Tape Housings and Packaging), Organic and Inorganic Chemicals as well as Plastic Raw Materials bearing the brand name “STYRON” |
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No of Employees : |
110 |
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 |
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Payment Behaviour : |
Slow But Correct |
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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) |
|
Hong Kong |
A1 |
A1 |
|
Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
|
Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
|
Very High Risk |
D |
HONG KONG - 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 has no tariffs on imported goods, and it levies excise duties on only four commodities, whether imported or produced locally: 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, its continued reliance on foreign trade and investment leaves it vulnerable to renewed global financial market volatility or a slowdown in the global economy. 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 12% of total system deposits in Hong Kong by the end of 2013. 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 total trade 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. Credit expansion and tight housing supply conditions have caused Hong Kong property prices to rise rapidly; consumer prices increased by more than 4% in 2013. 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. In 2013, Hong Kong and China signed new agreements under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from January 2014, cover services and trade facilitation, and will improve access to the mainland's service sector for Hong Kong-based companies.
|
Source
: CIA |
STYRON (HONG
KONG) LTD.
40-50 Tsing Yi Road, Tsing Yi, New Territories, Hong Kong.
PHONE: 852-2431 3222, 2431 3211, 3120 6300
FAX: 852-2610 1595, 2433 2596
E-MAIL: cllee1@styron.com
Managing Director: Mr. Lee Chung Lok
Incorporated on: 14th September, 1973.
Organization: Private Limited Company.
Capital: Nominal: HK$7,700,000.00
Issued: HK$7,523,700.00
Business Category: Polystyrene Trader.
Group Net Sales: US$5,307,414,000 (Year ended 31-12-2013)
Employees: 110.
Main Dealing Bankers: Citibank N.A., Hong Kong Branch.
The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
Banking Relation: Good.
Registered Head
Office & Plant:-
40-50 Tsing Yi Road, Tsing Yi, New Territories, Hong Kong.
Mailing Address:-
P.O. Box 129, Tsuen Wan, New Territories, Hong Kong.
Holding Company:-
Styron Holdings Asia Pte. Ltd., Singapore.
Ultimate Holding
Company:-
Trinseo S.A., Luxembourg.
Associated/Affiliated
Companies:-
Styron Group of Companies
Americas Styrenics LLC, US.
PT. Styron Indonesia, Indonesia.
SAL Petrochemical (Zhangjiagang) Co. Ltd., China.
Styron Argentina S.R.L., Argentina.
Styron Asia Ltd., Hong Kong.
Styron Australia Pty. Ltd., Australia.
Styron Belgium B.V.B.A., Belgium.
Styron Canada ULC, Canada.
Styron Chile Comercial Limitada, Chile.
Styron de Colombia Ltda., Colombia.
Styron de Mexico S. de R.L. de C.V., Mexico.
Styron Deutschland Anlagengesellschaft mbH, Germany.
Styron Deutschland GmbH, Germany.
Styron do Brasil Comercio de Produtos Quimicos Ltda., Brazil.
Styron Europe GmbH, Switzerland.
Styron Export GmbH, Switzerland.
Styron Finance Luxembourg S.a.r.l., Luxembourg.
Styron France S.A.S., France.
Styron Hellas M. EPE, Greece.
Styron Holding B.V., Netherlands.
Styron Holding S.a.r.l., Luxembourg.
Styron India Trading Private Ltd., India.
Styron Investment Holdings Ireland, Ireland.
Styron Italia s.r.l., Italy.
Styron Japan Y.K., Japan.
Styron Kimya Ticaret Ltd Sirketi, Turkey.
Styron Korea Ltd., Korea.
Styron LLC, US.
Styron Luxco S.a.r.l., Luxembourg.
Styron Materials Ireland, Ireland.
Styron Netherlands B.V., The Netherlands.
Styron Portugal. Lda, Portugal.
Styron S/B Latex Zhangjiagang Co. Ltd., China.
Styron Services de Mexico S. de R.L. de C.V., Mexico.
Styron Singapore Pte. Ltd., Singapore.
Styron Spain S.L., Spain.
Styron Suomi Oy, Finland.
Styron Sverige AB, Sweden.
Styron U.S. Holding. Inc., US.
Styron UK Ltd., UK.
Sumika Styron Polycarbonate Ltd., Japan.
Taiwan Styron Ltd., Taiwan.
Trinseo Materials Finance. Inc., US.
Trinseo Materials Materials Operating S.C.A., Luxembourg.
Trinseo Materials S.a.r.l., Luxembourg.
Trinseo U.S. Receivables Company SPV LLC, US.
etc.
04124462
0035391
Managing Director: Mr. Lee Chung Lok
Nominal Share Capital: HK$7,700,000.00 (Divided into 77,000 shares of HK$100.00 each)
Issued Share Capital: HK$7,523,700.00
(As per registry
dated 14-09-2013)
|
Name |
|
No.
of shares |
|
Styron Holdings Asia Pte.
Ltd. 260 Orchard
Road, #18-01 The Heeren, Singapore 238855. |
|
75,237 ===== |
(As per registry
dated 14-09-2013)
|
Name (Nationality) |
Address |
|
LEE Chung Lok |
Room 3408, 34/F., Block B, Hiu Sing
House, Hiu Lai Court, Hiu Kwong Street, Kwun Tong, Kowloon, Hong Kong. |
|
LIN Zhiqiang |
No. 2 Hua Feng Road, Grand Villa,
River Side Garden, Panyu, Guangzhou 511431, Guangdong Province, China. |
LEE Chung Lok (As per registry dated 14-09-2013)
The subject was incorporated on 14th September, 1973 as a private limited liability company under the Hong Kong Companies Ordinance.
Originally the subject was registered under the name of Dow Chemical (H.K.) Ltd., name changed to Dow Chemical (Hong Kong) Ltd. on 22nd February, 1974; and further to the present style on 1st March, 2010.
Formerly the subject was located at 47/F., Sun Hung Kai Centre, 30 Harbour Road, Wanchai, Hong Kong, moved to the present address where is also the address of the subject’s plant with effect from 15th June, 2010.
Apart from these, neither material change nor amendment has been ever traced and noted.
Activities: Manufacturer, Exporter and Wholesaler.
Lines: Polystyrene which is used in a range of products including Toys, Household Electric
Appliances, Electronics, Cassette Tape Housings and Packaging), Organic and Inorganic Chemicals as well as Plastic Raw Materials bearing the brand name “STYRON”
Brand Name: “STYRON” brand.
Floor Space: 29,385 sq.m.
Employees: 110.
Raw Materials: Mainly bought from Europe and North America.
Markets: Asia, Europe, North America, etc.
Group Net Sales: US$6,192,858,000 (Year ended 31-12-2011)
US$5,451,909,000 (Year ended 31-12-2012)
US$5,307,414,000 (Year ended 31-12-2013)
Terms/Sales: Various terms.
Terms/Buying: As per contracted.
Federation of Hong Kong Industries, Hong Kong. [Member No. A3160]
Nominal Share Capital: HK$7,700,000.00 (Divided into 77,000 shares of HK$100.00 each)
Issued Share Capital: HK$7,523,700.00
Alternation of
Issued Capital:-
|
14-09-1973 |
paid up |
HK$ 200.00 |
|
28-04-1974 |
paid up |
HK$5,073,500.00 |
|
16-01-1975 |
paid up |
HK$2,450,000.00 |
|
|
|
––––––––––––––– |
|
Total: |
paid up |
HK$7,523,700.00 ============== |
Mortgage or Charge: (See attachment)
Group Net Sales: (US$75,905,000) (Year ended 31-12-2011)
US$30,282,000 (Year ended 31-12-2012)
(US$22,218,000) (Year ended 31-12-2013)
Profit or Loss: Group business made losses in 2011 & 2013.
Condition: Keeping in an active and good state.
Facilities: Making active use of general banking facilities.
Payment: Slow But Correct
Commercial Morality: Good.
Bankers:-
· Citibank N.A., Hong Kong Branch.
· The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.
· Bank of America N.A., Hong Kong Branch.
· Citibank N.A., Singapore Branch.
· Deutsche Bank AG, Hong Kong Branch.
· Deutsche Bank AG, Singapore Branch.
Banking:-
One bank source reports subject maintains with them HKD account. Credit facilities have been granted to them. They have handled their bills transactions with satisfactory results.
Standing: Sound.
Formerly known as Dow Chemical (Hong Kong) Ltd., Styron (Hong Kong) Ltd. was incorporated in September 1973 as a wholly-owned subsidiary of The Dow Chemical Company [Dow] which was a US-based firm. Now the subject changed name to the present style on 1st March, 2010 as it has become a wholly-owned subsidiary of Styron Holdings Asia Pte. Ltd. which is a Singapore-based firm. Formerly, the ultimate holding company of the subject Styron LLC [Styron] was a US-based firm. Recently, the new holding company has become Trinseo S.A. [Trinseo/Group] which is a Luxembourg-based company.
The subject’s registered address is also its Tsing Yi plant which is one of the world’s largest polystyrene facilities. Polystyrene is used in a range of products including toys, household electric appliances, electronics, cassette tape housings and packaging
Trinseo is applying to be listed on New York Stock Exchange and the application is under processing.
Trinseo is a world leader in the production of plastics, latex and rubber. It is a new company built on seven decades of technology leadership.
Trinseo’s products bear trade mark such as TRINSEO™, LOMAX™, TYRIL™, PULSE™, EMERGE™, MAGNUM™, STYRON™, STYRON A-TECH™ and CALIBRE™, which are protected under applicable intellectual property laws and are owned by Trinseo through its subsidiaries.
Trinseo has had strong global positions in four business areas -- polystyrene and styrenic polymers, emulsion polymers, polycarbonate and engineered compounds, and PBR and SBR synthetic rubbers.
Trinseo is a leading global materials company dedicated to innovate and deliver for its customers. Its unique product portfolio brings together plastics, latex and rubber businesses that share feedstocks, operations, customers and end users. Trinseo has a leadership position in its two flagship products, polystyrene and latex. It benefits from global scale, a long-standing tradition of customer relationships and a robust innovation pipeline.
Trinseo’s products are widely used in industries such as home appliances, automotive, building and construction, carpet, commercial transportation, consumer electronics/information technology equipment [ITE], consumer goods, electrical and lighting, medical, packaging, paper and paperboard, rubber goods and tires.
Trinseo has two major
business units:-
· Plastics — which includes polystyrene, co-polymers (ABS, SAN), polycarbonate, expandable polystyrene [EPS] and compounds and blends, as well as automotive plastics.
· Emulsion Polymers — which includes the latex and rubber businesses.
· Acrylonitrile-Butadiene-Styrene [ABS];
· Automotive Plastics;
· Compounds and Blends;
· Emulsion Styrene-Butadiene [ESBR];
· Expandable Polystyrene [EPS];
· Feedstocks;
· General Purpose Polystyrene;
· High Impact Polystyrene;
· Lithium Polybutadiene [Li-PBR];
· Nickel Polybutadiene [Ni-PBR];
· Polycarbonate;
· Solution Styrene-Butadiene [SSBR];
· Styrene-Acrylate latex [SA Latex];
· Styrene-Acrylonitrile [SAN]; &
· Styrene-Butadiene Latex [SB Latex].
· The followings are Trinseo’s key products:-
Now, Trinseo has got associated or affiliated companies in Europe, Asia Pacific region, North and Latin America, etc.
For the year ended 31st December, 2013, the net sales of the Group amounted to US$5,307.4 million, made a loss of US$22.2 million. The Group also made a loss of US$75.9 million in 2011.
Trinseo Group had 2,123 full time employees worldwide as of 31st December, 2013.
Christopher D. Pappas is President and Chief Executive Officer of Trinseo. Pappas started his career at The Dow Chemical Company, where he gathered industry experience in a number of sales and managerial positions between 1978 and 1996.
The subject is fully supported by Trinseo. History in Hong Kong is over forty years.
On the whole, in view of the parentage of the subject, consider it good for normal business engagements.
|
Date |
Particulars |
Amount |
|
08-11-2010 |
Instrument: The Debenture Property: The Chargor, as continuing security for the payment and discharge of the Secured Obligations, charges in favour of the Collateral Agent to hold the same on trust for the Secured Parties Mortgagee: Deutsche Bank AG, New York Branch, USA. |
The Secured Obligations |
|
10-05-2013 |
Instrument: The Debenture Property: (A) By may of fixed charge, all of the Material Real Property (B) By way of fixed charge all the Chargor’s present and future right, title and interest and the benefit: (i) All plant and machinery, equipment, computers, vehicles and other chattels owned by the Chargor (ii) All Investments (iii) The Insurances (iv) The Material Contracts and all Related Rights (v) All Authorisations held in connection with the business of the Chargor (vi) All goodwill and uncalled capital of the Chargor (vii) All of the Registered intellectual Property Rights Mortgagee: Wilmington Trust National Association, Coroprate Capital
Markets, 50 South Sixth Street, Suite 1290, Minneapolis, MN 55402-1544, US. |
The Secured Obligations in respect of the Notes, the
Guarantees, the Security Documents and the Indenture dated as of 29 January
2013 amongst others, the Issuers, the Collateral Agent and the Trustee |
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.59.30 |
|
|
1 |
Rs.99.34 |
|
Euro |
1 |
Rs.80.70 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.