MIRA INFORM REPORT

 

 

Report No. :

337560

Report Date :

21.08.2015

 

IDENTIFICATION DETAILS

 

Name :

TRINSEO (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, Organic and Inorganic Chemicals and Plastic Raw Materials.

 

 

No. of Employees :

105

 

 

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 :

No Complaints

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, 2015

 

Country Name

Previous Rating

(31.12.2014)

Current Rating

(31.03.2015)

Hong Kong

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

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 12.5% of total system deposits in Hong Kong by the end of 2014. 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 47.3 million in 2014, 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 2014 mainland Chinese companies constituted about 50% of the firms listed on the Hong Kong Stock Exchange and accounted for about 60.1% 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 4.4% in 2014. 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 2014, Hong Kong and China signed a new agreement on achieving basic liberalization of trade in services in Guangdong Province under the Closer Economic Partnership Agreement, adopted in 2003 to forge closer ties between Hong Kong and the mainland. The new measures, effective from March 2015, cover a negative list and a most-favored treatment provision, and will improve access to the mainland's service sector for Hong Kong-based companies.

 

Source : CIA

 


Company name & address

 

TRINSEO (HONG KONG) LTD.

 

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.

 

Issued Share Capital:     HK$7,523,700.00

 

Business Category:        Polystyrene Trader.

 

Group Net Sales:           US$5,127,961,000  (Year ended 31-12-2014)

 

Employees:                   105.

 

Main Dealing Bankers:   Citibank N.A., Hong Kong Branch.

The Hongkong & Shanghai Banking Corp. Ltd., Hong Kong.

 

Banking Relation:           Good.

 

 

Name

 

TRINSEO  (HONG  KONG)  LTD.

 

 

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 Trinseo Materials Indonesia, Indonesia.

PT. Styron Indonesia, Indonesia.

SAL Petrochemical (Zhangjiagang) Co. Ltd., China.

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 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.

Taiwan Trinseo Ltd., Taiwan.

Trinseo (Hong Kong) Ltd., Hong Kong.

Trinseo Finance Ireland, Ireland.

Trinseo India Trading Private Ltd., India.

Trinseo Japan Y.K., Japan.

Trinseo Korea Ltd., Korea.

Trinseo LLC, U.S.

Trinseo Materials Finance. Inc., US.

Trinseo Materials Materials Operating S.C.A., Luxembourg.

Trinseo Materials S.a.r.l., Luxembourg.

Trinseo Polymers (Zhangjiagang) Co. Ltd., China.

Trinseo U.S. Receivables Company SPV LLC, US.

 

 

BUSINESS REGISTRATION NUMBER

 

04124462

 

 

COMPANY FILE NUMBER

 

0035391

 

 

MANAGEMENT

 

Managing Director:  Mr. Lee Chung Lok

 

 

ISSUED SHARE CAPITAL

 

HK$7,523,700.00

 

 

SHAREHOLDER

 

(As per registry dated 14-09-2014)

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 19-01-2015)

Name

(Nationality)

 

Address

LEONG Chin Bown

Unit 1621, 16/F., Tower 1, Harbour View Horizon, 12 Hung Lok Road, Hunghom Bay, Kowloon, Hong Kong.

 

LEE Chung Lok

Room 3408, 34/F., Block B, Hiu Sing House, Hiu Lai Court, Hiu Kwong Street, Kwun Tong, Kowloon, Hong Kong.

 

 

SECRETARY

 

LEE Chung Lok (As per registry dated 14-09-2014)

 

 

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; changed to Styron (Hong Kong) Ltd. on 1st March, 2010 and further to the present style on 30th January, 2015.

 

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, organic and inorganic chemicals and plastic raw materials.

 

Brand Name:                 STYRON” brand.

 

Floor Space:                  29,385 sq.m.

 

Employees:                   105.

 

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)

US$5,127,961,000  (Year ended 31-12-2014)

 

Terms/Sales:                 Various terms.

 

Terms/Buying:               As per contracted.

 

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

 

 

FINANCIAL INFORMATION

 

Issued Share Capital: HK$7,523,700.00

 

Mortgage or Charge:-

Date:    05-05-2015

Description of Instrument:           Debenture

Mortgagee:        Deutsche Bank AG, New York Branch
60 Wall Street, (NYC60-0219), New York 10005, U.S.

 

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)

(US$67,322,000)  (Year ended 31-12-2014)

 

Profit or Loss:    Group business made losses in past three years.

 

Condition:  Keeping in a normal state.

 

Facilities:  Making active use of general banking facilities.

 

Payment:  Reliable.

 

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:  Normal.

 

 

GENERAL

 

Formerly known as Styron (Hong Kong) Ltd., Trinseo (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 30th January, 2015 as its ultimate holding company is known as 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 widely in a range of products including toys, household electric appliances, electronics, cassette tape housings and packaging, etc.

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.

The Group operates its business in four reporting segments: Latex, Synthetic Rubber, Styrenics and Engineered Polymers.  Its major products include: styrene-butadiene latex, or SB latex, and styrene-acrylate latex, or SA latex, in our Latex segment; solution styrene butadiene rubber, or SSBR, lithium polybutadiene rubber, or Li-PBR, emulsion styrene butadiene rubber, or ESBR, and nickel polybutadiene rubber, or Ni-PBR, in its Synthetic Rubber segment; polystyrene, acrylonitrile butadiene styrene, or ABS, and styrene acrylonitrile, or SAN, in its Styrenics segment; and polycarbonate, or PC, compounds and blends, and polypropylene compounds in our Engineered Polymers segment.  On 1st January, 2015, it changed its four reporting segments to Latex, Synthetic Rubber, Performance Plastics (including compounds and blends and polypropylene compounds), and Basic Plastics and Feedstocks (including polystyrene, ABS, SAN, and PC).

The group has significant manufacturing and production operations around the world, which allows it to serve its global customer base.  As of 31st December, 2014, its production facilities included 34 manufacturing plants (which included a total of 81 production units) at 26 sites across 14 countries, including joint ventures and contract manufacturers.  Its manufacturing locations include sites in high-growth emerging markets such as China, Indonesia and Brazil.  Additionally, as of 31st December, 2014 it operated 11 research and development (“R&D”) facilities globally, including mini plants, development centres and pilot coaters.

Now, Trinseo has got associated or affiliated companies in Europe, Asia Pacific region, North and Latin America, etc.

On 17th June, 2014, Trinseo completed an IPO and has successfully been listed on New York Stock Exchange, or NYSE, under the ticker symbol “TSE”.

For the year ended 31st December, 2014, the net sales of the Group amounted to US$5,128.0 million (2013:  US$5,307.4 million), made a loss of US$67.3 million in the year.  The Group also made a loss of US$22.2 million in 2013.  The Group made losses in past two years.

Trinseo Group had 2,179 full time employees worldwide as of 31st December, 2014.

Christopher D. Pappas is President and Chief Executive Officer of Trinseo.  Pappas started his career at The Dow Chemical Company, where he had 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-one years.

On the whole, in view of the parentage of the subject, consider it good for normal business engagements.

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.65.23

UK Pound

1

Rs.102.20

Euro

1

Rs.72.57

 

 

INFORMATION DETAILS

 

Analysis Done by :

KAS

 

 

Report Prepared by :

TPT

 

               

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.