MIRA INFORM REPORT

 

 

Report No. :

318405

Report Date :

24.04.2015

 

IDENTIFICATION DETAILS

 

Name :

BASF COMPANY LTD.

 

 

Registered Office :

284, Yeosusandan 2-Ro, Yeosu-Si, Jeollanam-Do, Korea 555-280

 

 

Country :

South Korea

 

 

Financials (as on) :

31.12.2014

 

 

Date of Incorporation :

15.12.1988

 

 

Com. Reg. No.:

417-81-04858

 

 

Legal Form :

Co., Ltd by Shares

 

 

Line of Business :

Manufacture of Basic Organic Petrochemicals

 

 

No. of Employees :

1,059

 

 

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 :

Good 

 

 

Payment Behaviour :

Regular

 

 

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 31, 2014

 

Country Name

Previous Rating

(30.09.2014)

Current Rating

(31.12.2014)

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 economic 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. A system of close government and business ties, including directed credit and import restrictions, initially 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 7% in 1998, and then recovered by 9% in 1999-2000. South 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. South Korea's export focused economy was hit hard by the 2008 global economic downturn, but quickly rebounded in subsequent years, reaching over 6% growth in 2010. The US-Korea Free Trade Agreement was ratified by both governments in 2011 and went into effect in March 2012. Between 2012 and 2014, the economy experienced sluggish growth because of external market slowdowns. The administration in 2015 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, dominance of large conglomerates (chaebols), and the heavy reliance on exports, which comprise about half of GDP.

 

Source : CIA


Basic Information

 

Company Name

BASF COMPANY LTD.

Registered Address

284, Yeosusandan 2-ro, Yeosu-si, Jeollanam-do, Korea

(Old Address System : 373-15, Hwachi-dong, Yeosu-si, Jeollanam-do, Korea)

Building

 

Zip Code

555-280

Tel

+82-61-680-7000

Fax

+82-61-684-7260

E-mail

nari.kim@partners.basf.com

Website

www.basf.co.kr;www.basf-korea.co.kr

Trading Address

14th Fl, Korea Chamber of Commerce & Industry, 39, Sejong-daero, Jung-gu, Seoul, Korea

(Old Address System : 14th Fl, Korea Chamber of Commerce & Industry, 45, Namdaemunno 4-ga, Jung-gu, Seoul, Korea)

Tel

+82-2-3707-3100

Fax

+82-2-3707-3122

Other Address-Ulsan Site-Plastics Factory

472-1, Sanggae-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-279-5800

Fax

+82-52-272-4801

Other Address-Ulsan Site-Plastics Factory

569-30, Yongyeon-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-279-9500

Fax

+82-52-279-9501

Other Address-Ansan Factory

607B-22, Banwol Industrial Complex, 631-3, Seonggok-dong, Danwon-gu, Ansan-si, Gyeonggi-do, Korea

Tel

+82-31-599-7513

Fax

+82-31-599-7506

Other Address-Hwaseong Factory

870, Yeocheon-dong, Nam-gu, Ulsan, Korea

Tel

+82-52-278-2000

Fax

+82-52-278-2001

Type

Export/Import

Industry

Manufacture of Basic Organic Petrochemicals

  Main Business

Styrofoam, L-Lysine, EPS, PS, ABS, MPI, TPI

  Sub Business

 

Established (mm/dd/yyyy)

12/15/1988

 

The Subject owns the premises of registered address/factory.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Polyurethane resins(13111061)

Sell

Polystyrene foam(13111308)

Sell

Acrylonitrile butadiene styrene resin(13111004)

Sell

Chemicals including Bio Chemicals and Gas Materials(12000000)

Sell

Organic derivatives and substituted compounds(12352100)

Sell

Surfactants(12161900)

Sell

Inorganic compounds(12352300)

Sell

Pigments(12171600)

Sell

Other adhesives and sealants(31201600)

Sell

Drugs and Pharmaceutical Products(51000000)

Sell

Plasticizers(12162000)

Sell

Inorganic compounds(12352300)

Sell

Organic peroxides(12352120)

 

 

CEO’s

 

Name

Shin Woo-Sung

Address

Suite 12-1306, 844, Sindang-dong, Jung-gu, Seoul, Korea

Date of Birth

09/12/1957

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

516,625,420,000

Employees

1,059

Formation

Co., Ltd by shares

Foreign Direct Investment Corporation

Bank Details

Korea Exchange Bank –Sales 1 Division

Corporate Registered No.

110111-0600860

Business Registered No.

417-81-04858

Permit & Licenses

05/1999 ISO 9001

 

Int’l Trade No.: 429296

Shareholder Position

Name

Shares

%

BASF BETEILIGUNGSGESELLSCHAFT GMBH (GERMANY)

103,325,084

100.00

TOTAL

103,325,084

100.00

Company History

1954 Entered Korea as FOHAG(Far East Trading Company)

1980 Established as Hyosung BASF

1982 Established BASF KOREA CO., LTD.

12/1988 Established HANYANG BASF URETHANE CO., LTD.

12/1997 Changed company name to BASF URETHANE KOREA CO., LTD.

03/1998 Changed company name to BASF KOREA STILENIX CO., LTD.

05/1998 Acquired Lysine Business Division from Daesang Corporation

12/1998 Acquired Polyol Business Division from Dong Sung Chemical Co., Ltd.

12/1998 Changed company name to the present name with the acquisition of BASF URETHANE KOREA CO., LTD., BASF KOREA STILENIX CO., LTD. and BASF KOREA CO., LTD.

11/2000 Awarded US$500 Million Export Top Prize

06/2001 Acquired SK Evertech's SM Factory

10/2001 Increased capital to 404,650,000,000 KRW from 354,650,000,000 KRW

05/2003 Acquired Engineering Plastic Business Division from Honeywell

04/2005 Acquired BASF AGRO KOREA CO., LTD.

10/2006 Acquired the operation part of BASF Resin Co., Ltd.

07/31/2007 Increased the authorized shares to 94,930,000 shares from 80,930,000 KRW

01/2008 Sold Gunsan Factory(Lysine: 228, Soryong-dong, Gunsan-si, Jeollabuk-do, Korea) to PAIKKWANG INDUSTRIAL CO., LTD.(110111-0003709) at USD27,000,000.

05/21/2009 increased capital to 464,650,000,000 KRW from 404,650,000,000 KRW

08/03/2009 Decided to sell Ulsan SM Factory to SK ENERGY CO., LTD.(110111-3710385)

02/01/2010 Acquired CIBA SPECIALTY CHEMICALS KOREA LTD.(110111-0714406) and DAIHAN SWISS CHEMICAL CORP.(110111-0307325)

01/01/2011 Split off KS Divisions, and transferred to STYROLUTION KOREA LTD.(230111-0148328)

01/01/2012 Acquired COGNIS KOEA LTD.(110111-2865090)

08/31/2012 Increased the authorized shares to 100,930,000 shares from 94,930,000 shares

09/14/2012 Increased capital to 481,729,000,000 KRW from 464,650,000,000 KRW

03/18/2014 Increased the authorized shares to 106,930,000 shares from 100,930,000 shares

03/26/2014 Increased capital to 516,625,420,000 KRW from 481,729,000,000 KRW

 

 

Management

 

Job Description

 

Title

Name

Sex

Nationality

Inauguration Date

President & CEO

Mr.

Shin Woo-Sung

Male

Korean

03/02/2009

Director

Mr.

Goparan Philei

Male

South African

06/01/2013

Director

Mr.

Bernhart Quintergellen

Male

Germany

09/01/2014

Auditor

Mr.

Wolfro Light

Male

German

05/01/2011

 

 

Financials

 

Year / Unit : KRW

 

Sales

Assets

Net Income

(*)2014

2,062,540,549,272

1,241,930,687,265

64,984,174,133

(*)2013

2,261,706,378,661

1,290,365,566,991

125,126,408,833

2012

2,052,377,984,864

1,150,358,533,984

111,286,722,605

2011

1,981,901,124,110

1,314,309,031,536

228,920,128,968

2010

2,905,643,816,960

1,328,755,510,275

277,702,346,311

2009

2,182,467,001,023

1,131,492,742,826

252,650,621,415

2008

2,409,606,875,106

1,005,708,769,659

90,382,545,153

2007

2,154,041,355,519

1,154,047,696,907

179,289,618,386

2006

1,908,768,117,693

1,236,191,744,609

169,881,499,330

2005

2,088,248,977,659

1,326,167,222,613

128,075,379,460

2004

1,960,457,253,117

1,454,917,869,412

47,803,170,535

2003

1,383,330,951,764

1,461,689,186,845

(-)24,016,453,546

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

 

 

Financial Description

 

Authorized Capital(KRW)

534,650,000,000

Paid-Up Capital(KRW)

516,625,420,000

Total Issues Shares

103,325,084

 

 

Balance Sheet

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Total Assets

1,241,930,687,265

1,290,365,566,991

1,150,358,533,984

Current Assets

709,020,847,065

802,431,941,417

733,480,244,193

Cash & Cash Equivalents

51,882,711,136

184,934,841,790

 

Trade Receivables & Other Receivables

406,382,977,261

390,221,599,700

 

Inventories

223,722,484,482

201,319,744,566

200,668,721,295

Other Current Assets

25,227,267,434

20,177,547,137

 

Derivatives

1,805,406,752

5,778,208,224

 

Non-Current Assets

532,909,840,200

487,933,625,574

416,878,289,791

Tangibles

498,584,828,706

455,277,084,200

372,134,317,612

Intangibles

13,482,414,825

14,778,673,010

9,991,760,513

Marketable Financial Instruments

15,710,000

704,210,000

 

Other Financial Assets

14,966,037,032

16,908,979,339

 

Other Non-Current Assets

4,302,175,909

151,700,000

 

Derivatives

1,558,673,728

112,979,025

 

Total Liabilities

424,279,622,125

445,260,681,516

376,830,567,640

Current Liabilities

321,856,676,789

342,754,311,549

334,706,478,453

Trade Payables & Other Payables

307,359,942,004

323,574,102,796

287,354,397,962

Other Current Financial Debts

810,355,996

641,403,692

4,662,309,452

Other Current Liabilities

9,893,627,478

18,318,133,151

1,843,913,009

Derivatives

3,792,751,311

220,671,910

98,022,872

Non-Current Liabilities

102,422,945,336

102,506,369,967

42,124,089,187

Long-Term Trade Payables & Other Payables

757,268,398

1,371,761,717

 

Long-Term Borrowings

61,868,160,000

67,758,431,000

32,007,476,000

Other Non-Current Financial Debts

8,659,894,993

9,470,250,989

 

Other Non-Current Liabilities

2,397,527,574

2,766,377,970

3,135,228,366

Provisions

4,371,840,000

4,788,069,000

4,673,658,000

Confirmed Salaries

15,097,431,666

12,123,855,521

 

Provision for Severance & Retirement

5,741,986,054

-

 

Derivatives

1,871,903,525

436,120,084

398,994,668

Deferred Income Tax Credit

1,656,933,126

3,791,503,686

 

Capital Stock

516,625,420,000

481,729,000,000

481,729,000,000

Capital Surplus

21,082,235,095

21,252,527,905

57,849,361,812

Others

-16,864,608,281

-13,202,186,623

369,525,000

Profit Surplus

296,808,018,326

355,325,544,193

233,580,079,532

Total Equity

817,651,065,140

845,104,885,475

773,527,966,344

Liab. & Shareholder’s Equity

1,241,930,687,265

1,290,365,566,991

1,150,358,533,984

 

 

Income Statement

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Sales

2,062,540,549,272

2,261,706,378,661

2,052,377,984,864

Cost of Sold Goods

1,820,704,512,027

1,949,850,754,288

1,746,507,466,982

Gross Profit

241,836,037,245

311,855,624,373

305,870,517,882

Selling & Admin. Expenses

178,040,973,607

185,871,258,436

171,945,940,033

Operating Income

63,795,063,638

125,984,365,937

133,924,577,849

Other Net Income

19,559,713,134

5,821,735,861

 

Other Income

82,901,801,916

54,007,636,328

 

Other Expenses

-63,342,088,782

-48,185,900,467

 

Net Finance Income

-20,211,118,553

11,489,128,590

 

Finance Income

8,769,821,163

27,804,346,861

 

Finance Expenses

-28,980,939,716

-16,315,218,271

 

Income Before Taxes

63,143,658,219

143,295,230,388

137,763,876,282

Income Taxes Expenses

-1,840,515,914

18,168,821,555

26,477,153,677

Net Income

64,984,174,133

125,126,408,833

111,286,722,605

 

 

Cash Flows

Unit : Korean Won

As of 12/31/2014

As of 12/31/2013

As of 12/31/2012

Operating Activities Cash Flows

40,808,815,467

207,171,581,434

-25,528,481,332

Cash Flows from Operating

50,316,990,981

226,558,203,538

 

-Net Income

64,984,174,133

125,126,408,833

111,286,722,605

-Exp. without Cash Outflow

69,120,550,159

90,642,756,766

64,810,500,865

-Revenue without Cash Inflows

-19,694,681,732

-12,014,955,730

-7,822,627,368

-Changes in Asset/ & Liability

-64,093,051,579

22,803,993,669

-193,803,077,434

Interests Received

3,360,299,968

5,243,713,613

 

Dividends Received

8,341,000

841,000

 

Interests Paid

-4,256,959,551

-4,355,698,780

 

Income Taxes

-8,619,856,931

-20,275,477,937

 

Cash Flows from Investing

-84,224,319,534

-50,898,953,020

-71,556,717,355

Cash Inflow from Investing

3,691,048,649

1,103,734,376

13,668,352,606

Cash Outflows for Investing

-87,915,368,183

-52,002,687,396

-85,225,069,961

Cash Flows from Financing

-89,416,976,501

-67,040,293,736

-173,726,587,200

Cash Inflows from Financing

34,726,127,190

34,652,908,000

34,382,621,800

Cash Outflows from Financing

-124,143,103,691

-101,693,201,736

-208,109,209,000

Increase/Decrease in Cash

-133,052,130,654

89,232,334,678

-270,811,785,887

Cash at the Beginning of Year

184,934,841,790

95,702,507,112

366,529,512,776

Cash at the End of Year

51,882,711,136

184,934,841,790

95,717,726,889

 

 

Products, Technologies, Services Description

 

Main Products & Services

-Thermoplastics Business

EPS, PS, ABS, SM, Engineering plastics production and sales

 

-Polyurethane Business

MDI, TDI, Polyol production and sales

 

-Chemicals & Performance Products Business

PolyTHK, BDO/THF, Fiber raw materials, Petrochemicals, Intermediates, Textile Chemicals, Leather Chemicals, Pigment & Dyestuff for industry, Specialty Chemicals, Acrylic Monomer & Polymer, Paper Chemicals

 

-Fine Chemicals Business

Animal Nutrition, Lysine Byproducts, Cosmetics, Pharmaceuticals, Food Ingredients, Aroma Chemicals for flavor and fragrance, Agro chemical products

 

 


Trade Partners & Competitors

 

Suppliers

BASF AKTIENGESELLSCHAFT(CATALYST)

HANWHA PETROCHEMICALS CO., LTD.(CHLORINE, NITRIC ACID & CAUSTIC SODA)

PAIKKWANG INDUSTRIAL CO.,LTD.(110111-0003709: CHLORINE, CAUSTIC  SODA)

HUCHEMSFINECHEMICALCORPORATION(110111-2611906 : NITRIC ACID)

AIR LIQUIDE KOREA CO., LTD.(110111-1232216 : CARBON MONOXIDE, HYDROGEN)

HEIN CORPORATION(180111-0049915 : FORMALDEHYDE)

SAMYANG CHEMICAL CO., LTD.(110111-0568878 : FORMALDEHYDE)

SKC(ETHYLENE)

Customers

BASF AKTIENGESELLSCHAFT

BASF SOUTH EAST ASIA PTE. LTD.

Competitors

SAMSUNG TOTAL PETROCHEMICALS CO., LTD.

411-1, DOKGOT-RI, DAESAN-EUP, SEOSAN-SI, CHUNGCHEONGNAM-DO, KOREA

TEL:+82-41-660-6114 FAX:+82-41-681-4812

 

HONAM PETROCHEMICAL CORPORATION

11TH FL., LOTTE GWANAK TOWER, 395-67, SINDAEBANG 2-DONG, DONGJAK-GU, SEOUL, KOREA

TEL:+82-2-829-4114 FAX:+82-2-843-1010

 

SAM NAM PETROCHEMICAL CO., LTD.

4TH FL., SAMYANG CO. BLDG., 263, YEONJI-DONG, JONGNO-GU, SEOUL, KOREA

TEL:+82-2-740-7450~1 FAX:+82-2-745-4225

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

BASF SE

BASF SOUTH EAST ASIA PTE. LTD.

Joint Venture

 

Subsidiary

CIBA SPECIALTY CHEMICALS KOREA LTD.(110111-0714406)

(100.0% held by the subject company)

 

DAIHAN SWISS CHEMICAL CORP.(110111-0307325)

(100.0% held by the subject company)

 

COGNIS KOEA LTD.(110111-2865090)

(100.0% held by the subject company)

Corporate Ownership

BASF SE

BASF BETEILIGUNGSGESELLSCHAFT GMBH

 

Major Shareholders

BASF BETEILIGUNGSGESELLSCHAFT GMBH

CARL-BOSCH STRAßE 38, 67056 LUDWIGSHAFEN, GERMANY

TEL: 49-621-60-0 FAX: 49-621-60-42525

 

Cooperative Enterprise

-TECHNICAL SUPPORT & ENGINEERING SUPPORT

MITSUBISHI CHEMICAL CORPORATION

BASF SE

 

 

Sales by Region (Activity & Markets)

 

The Subject deals with the companies in Germany.

 

 

Court Action

 

No.

 

 

News Clipping

 

-----------

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.63.19

UK Pound

1

Rs.94.94

Euro

1

Rs.67.66

 

INFORMATION DETAILS

 

Analysis Done by :

KAR

 

 

Report Prepared by :

NIT

 

               

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.