MIRA INFORM REPORT

 

 

Report Date :

06.06.2014

 

IDENTIFICATION DETAILS

 

Name :

STYRON  (HONG  KONG)  LTD.

 

 

Formerly Known as :

Dow Chemical (Hong Kong) Ltd.

 

 

Registered Office :

40-50 Tsing Yi Road, Tsing Yi, New Territories

 

 

Country :

Hong Kong

 

 

Date of Incorporation :

14.09.1973

 

 

Com. Reg. No.:

04124462

 

 

Legal Form :

Private Limited Company

 

 

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

 

 

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

 

 

Payment Behaviour :

Slow But Correct 

 

 

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

Insignificant

 

A1

Low Risk

 

A2

Moderate Low Risk

 

B1

Moderate Risk

 

B2

Moderate High Risk

 

C1

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

 


Company name

         

STYRON  (HONG  KONG)  LTD.

 

 

 

Company ADDRESS

 

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

 

 

MANAGEMENT

 

Managing Director:  Mr. Lee Chung Lok

 

 

SUMMARY

 

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.


Company ADDRESS

 

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.

 

BUSINESS REGISTRATION NUMBER

 

04124462

 

 

COMPANY FILE NUMBER

 

0035391

 

 

MANAGEMENT

 

Managing Director:  Mr. Lee Chung Lok

 

 

CAPITAL

 

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

 

 

SHAREHOLDER

(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

=====

 

 

DIRECTORS

(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.

 

 

SECRETARY

 

LEE Chung Lok (As per registry dated 14-09-2013)

 

 

HISTORY

 

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.

 

 

OPERATIONS

 

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.

 

 

MEMBERSHIP

 

Federation of Hong Kong Industries, Hong Kong.  [Member No. A3160]

 

 

FINANCIAL INFORMATION

 

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.

 

 

GENERAL

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.

 

MORTGAGE OR CHARGE

 

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

UK Pound

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%)

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.