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Report Date : |
07.11.2014 |
IDENTIFICATION DETAILS
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Name : |
STARPLAST INDUSTRIES 1967 LTD. |
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Registered Office : |
P.O. Box 1499 (3101401) 32 Hameginim Street HAIFA 3326226 |
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Country : |
Israel |
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Date of Incorporation : |
13.12.1967. |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Manufacturers, exporters and marketers of various plastic products, including |
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No. of Employees : |
800 employees –
650 subject's employees and 150 permanent man-power employees |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 – June 1, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
|
Israel |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
ISRAEL - ECONOMIC OVERVIEW
Israel has a technologically advanced market economy. Cut
diamonds, high-technology equipment, and pharmaceuticals are among the leading
exports. Its major imports include crude oil, grains, raw materials, and
military equipment. Israel usually posts sizable trade deficits, which are
covered by tourism and other service exports, as well as significant foreign
investment inflows. Between 2004 and 2011, growth averaged nearly 5% per year,
led by exports. The global financial crisis of 2008-09 spurred a brief recession
in Israel, but the country entered the crisis with solid fundamentals,
following years of prudent fiscal policy and a resilient banking sector. In
2010, Israel formally acceded to the OECD. Israel's economy also has weathered
the Arab Spring because strong trade ties outside the Middle East have
insulated the economy from spillover effects. The economy has recovered better
than most advanced, comparably sized economies, but slowing demand domestically
and internationally, and a strong shekel, have reduced forecasts for the next
decade to the 3% level. Natural gas fields discovered off Israel's coast since
2009 have brightened Israel's energy security outlook. The Tamar and Leviathan
fields were some of the world's largest offshore natural gas finds this past
decade. The massive Leviathan field is not due to come online until 2018, but
production from Tamar provided a one percentage point boost to Israel's GDP in
2013 and is expected to contribute 0.5% growth in 2014. In mid-2011, public
protests arose around income inequality and rising housing and commodity
prices. Israel's income inequality and poverty rates are among the highest of
OECD countries and there is a broad perception among the public that a small
number of "tycoons" have a cartel-like grip over the major parts of
the economy. The government formed committees to address some of the grievances
but has maintained that it will not engage in deficit spending to satisfy
populist demands. In May 2013 the Israeli government, in a politically difficult
process, passed an austerity budget to reign in the deficit and restore
confidence in the government's fiscal position. Over the long term, Israel
faces structural issues, including low labor participation rates for its
fastest growing social segments - the ultra-orthodox and Arab-Israeli
communities. Also, Israel's progressive, globally competitive, knowledge-based
technology sector employs only 9% of the workforce, with the rest employed in
manufacturing and services - sectors which face downward wage pressures from
global competition.
|
Source
: CIA |
STARPLAST INDUSTRIES 1967 LTD.
Telephone 972
4 652 97 77; 652 98 05
Fax 972
4 852 55 02
Email: head_office@starplast.com
Offices:
P.O. Box 1499 (3101401)
32 Hameginim Street
HAIFA 3326226
ISRAEL
Plant:
Alon Tavor Industrial Park
P.O. Box 2085
AFULA ILLIT 1812002 ISRAEL
A private limited company, incorporated as per file No. 51-049121-0 on
the 13.12.1967.
Authorized share capital NIS 45,000,000.00 divided into -
400 preference shares of NIS 1,500.00 each (issued),
200 preference shares of NIS 1,600.00 each (issued),
490 redeemable shares of NIS 1,600.00 each (issued),
14,432,000 ordinary "A" shares of NIS 1.00 each (13,587,200
shares issued),
14,432,000 ordinary "B" shares of NIS 1.00 each (13,587,200
shares issued),
14,431,955 ordinary "C" shares of NIS 1.00 each (13,587,205
shares issued),
45 ordinary "D" shares of NIS 1.00 each (issued),
of which shares amounting to NIS 42,465,650.00 were issued.
1. SENIOR SCHWARTZ HOLDINGS
LTD., owned by Senior Schwartz,
2. Senior Schwartz, holding
45 ordinary “D” shares.
Senior Schwartz, Chairman and General Manager,
Joseph Schwartz.
Manufacturers, exporters and marketers of various plastic products,
including
packaging goods, household items, garden furniture, camping goods, construction
kit, toys, cutlery, disposable cutlery, children’s products under the brand
“Starplay”, high quality second-hand moulds for injection - and blow-molding
under the brand “Starmould”.
Some 97% of sales are exports, mainly to Eastern Europe, USA, Japan and
Australia.
Among foreign clients: WALLMART (USA), TARGET (USA), etc.
Among local clients: EQUIP THE EQUIPMENT CO. (affiliate), etc.
Among local suppliers: TOSAF COMPOUNDS, BROMBERG INDUSTRIES, CARMEL
OLEFINS, CARMEL CONTAINERS, SERVI-TECH, I.P.S. ISRAEL POLYMERS SERVICES, A.
ZILKA MARKETING & ENGINEERING, PROMETHENS POTACHNIK, etc.
Operating from a plant, on an area (owned by the shareholders) of
150,000 sq. meters, of which 50,000 sq. meters are built up, in Alon Tavor
Industrial Park, Afula Elite, and from offices in 32 Hameginim Street (to
where they moved from 31-33, Hane'emanim Street), Haifa. Also operating
from offices in Germany, UK, France, The Netherlands and Australia.
As of 2012 had 800 employees – 650 subject's employees and 150 permanent
man-power employees (similar to the end of 2010, had in all 750 employees in
2010 and 620 employees in 2009). Current number unavailable, according to
reports some 500 employees in 2013, compared to some 600 in 2012.
According to a report from September 2013, APAX PARTNERS intended to
acquire 51% according to subject's value of US$ 80 million (deal did not
materialize).
A media report from July 2010 mentions that negotiations with investors
are according to a company value of US$ 80 million.
B/S to the 31.12.2009 totaled NIS 327,281,000.
Equity to the 31.12.2009 was NIS 106,539,000
B/S to the 31.12.2010 totaled NIS 360,183,363.
Equity to the 31.12.2010 was NIS 117,075,000
The difference between 2009 and 2010 equity is subject's net 2010
profit.
Stock was valued at NIS 60,000,000 in early 2012.
Property of plant is valued at several million US$.
Later/other financial data not forthcoming.
Subject is an "Approved Enterprise"
and as such enjoys government financial assistance. In December 2000, it was
reported that the Israel Investment Center (IIC) approved subject’s investment
plan to expand its plant, for a sum of
US$ 8.52 million.
In August 2001, IIC declined the approval of a further investment of US$
35 million for expansion in the Alon Tavor plant, due to subject's failing to
meet the terms by IIC (allegedly also misusing the grants). IIC even filed a
complaint against subject to the Israeli police. The Tax Authority investigated
subject’s activities and it was revealed that subject sent raw materials to a
plant in Romania, where plastic products were manufactured for lower costs and
were imported to Israel by subject, against the terms and conditions of the IIC.
Subject’s attorney, Mr. Shmuel Klein commented to us that the
investigation was completed with the decision not to perform legal procedures
against subject, but to impose a ransom of US$ 15,000 on subject.
Mr. Senior Schwartz was quoted in a media interview in July 2010, saying
subject received approval of the IIC for an investment of NIS 92.5 million, of
which 24% as a grant (NIS 22.2 million).
There are 75 charges for unlimited amounts, as well as 2 charges for the
sums of NIS 4,000,000.00 and US$ 600,000.00 registered on the company's assets
(financial and fixed assets), in favor of local banks, leasing companies and
the State of Israel.
2007 sales claimed to be NIS 245,012,000, 95% for export.
2008 sales claimed to be NIS 226,000,000, 97% for export.
2009 sales claimed to be NIS 280,000,000, 98% for export.
According to the media report in July 2010, subject’s net profit in 2009
was 10% of turnover.
2010 sales claimed to be NIS 350,000,000, 97% for export, making a
NIS 10,536,000 net profit.
2011 sales claimed to be NIS 350,000,000, 97% for export.
2012 sales reported to be less than NIS 340,000,000, around 97% for
export.
2013 sales reported to be close to NIS 340,000,000.
STARPLAST MARKETING LP., 50%,
STARPLAST USA, 100%, USA marketing company
STARPLAST EUROPE, 100%,
STARPLAST 3000 LTD., sister company, the real estate company, holding
the property where subject is operating from in Alon Tavor Industrial Zone.
SCHWARTZ SENIOR HOLDINGS LTD., holding company.
Bank Leumi Le’Israel Ltd., Haifa Main Branch
(No. 876), Haifa,
account No. 480000/23.
Bank Hapoalim Ltd., Kikar Paris Branch (No. 736), Haifa, account No.
11021.
The First International Bank of Israel Ltd.,
Haifa Main Branch (No 006), Haifa, account No. 475475.
Mizrahi Tefahot Bank Ltd., Hadar Haifa Branch (No. 441), Haifa, account
No. 121309.
Union Bank of Israel Ltd., Main Haifa Branch
(No. 081), Haifa, account
No. 542900/05.
A check with the Central Banks' database did not reveal anything
detrimental on subject’s a/m accounts.
Nothing unfavorable learnt (besides a/m affair in MEANS).
So far we were unable to
speak to subject's officials. We were asked us to send them an email with our
request – which we did.
In case they return to us with further data, we will
update you accordingly.
Subject is veteran and
considered among the leading plastic consumer goods manufacturer and exporter.
The company is ISO-9002 certified.
We assume that subject has been hurt by the depreciation of the US
Dollar and Euro against the local NIS currency (as almost all sales are for
export), as well as the slow-down in world's markets (which may explain the
reported decrease in employees, as noted above, though we could not verify
that).
A fire erupted in subject's Alon Tavor plant in November 2005 and caused
a severe damage. According to reports, NIS hundreds of million financial damage
inflicted when 3 facilities (out of 4) caught fire and collapsed and large
stock volume burned. Subject was fully insured. The work relatively quickly
resumed, using the large plot they have in Alon Tavor, while building new
facilities instead the ones that burned.
In September 2013 it
was reported that APAX PARTNERS is contemplating to acquire 51% of subject according to a
value of US$ 80 million. So far the deal did not take place.
The Society of Israel Plastic & Rubber Industry published data on
the sector for 2011: The sector’s turnover (both local and for export) reached
US$ 5,075 million. Sales breakdown: 30% of the Plastic & Rubber sector's
sales are Household Products, 23% - Agriculture, 16% - Packaging, 9% - Building
sector, 9% Industry, 5% Furniture, 4% - Compounds (rest is to other fields).
Sales for export by the Plastic and Rubber Industry in 2013 climbed by
7.6% from 2012 up to US$ 1,969 million, after it fell by some 3% in 2012 from
2011, returning to the growth trend in 2011 (by 15% from 2010). Growth in
export trend continued into the first 7 months of 2014, with 7.7% rise compared
to the parallel period in 2013.
According to the Central Bureau of Statistics, import of Plastic and
Rubber raw material for the local industry in 2013 summed up to US$ 2,409.6
million, compared to US$ 2,345.7 in 2012. The positive trend continued in the
first 4 months of 2014, where import rose by 6.7% compared to the parallel
period in 2013.
Investment in imported machinery and equipment by the Plastic &
Rubber industries fell in 2013 by 20% from 2012, totaling NIS 383.5 million.
This is after a decrease in 2012 by 4.5% from 2011, whereas investments rose in
2011 and in 2010.
Notwithstanding the refusal to disclose details, considered good for
trade engagements.
Maximum unsecured credit recommended US$ 100,000. Subject may well be
worth higher credits, though the fact that we could not get updates from the
company's officials, including lack of financial data, we remain cautious.
Note: Since February 2013 Israel Post has started using a new area code
method of 7 digits (the old method of 5 digits is no longer valid).
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.61.39 |
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1 |
Rs.98.00 |
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Euro |
1 |
Rs.76.99 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
NB |
New Business |
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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.