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Report No. : |
353702 |
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Report Date : |
15.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SIMS METAL MANAGEMENT ASIA LTD. |
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Registered Office : |
Room 1709-1711, 17/F., ACE Tower, Windsor House, 311 Gloucester Road,
Causeway Bay |
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Country : |
Hong Kong |
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Date of Incorporation : |
17.11.1972 |
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Com. Reg. No.: |
04958631 |
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Legal Form : |
Private Limited Company |
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Line of Business : |
Importer, Exporter and Wholesaler of all kinds of stainless steel materials. |
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No. of Employee : |
16 |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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Hong Kong |
A1 |
A1 |
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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 |
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 |
SIMS METAL MANAGEMENT ASIA LTD.
ADDRESS: Room 1709-1711, 17/F., ACE
Tower, Windsor House, 311 Gloucester Road, Causeway Bay, Hong Kong.
PHONE: 852-3657 9000
FAX: 852-3657 9098
MANAGEMENT:
Managing Director: Mr. Fred
Steven Knechtel
Incorporated on: 17th November,
1972.
Organization: Private Limited
Company.
Issued Share Capital: HK$1,102,280,000.00
Business Category: Importer, Exporter
and Wholesaler.
Group Turnover: A$6,328.1 million (Year ended 30-06-2015)
Company Employees: 16.
Group Employees: 5,429. (Year ended 30-06-2015)
Main Dealing Banker: Bank of America
N.A., Hong Kong Branch.
Banking Relation: Satisfactory.
Registered Head
Office:-
Room 1709-1711, 17/F., ACE Tower, Windsor House, 311 Gloucester Road,
Causeway Bay, Hong Kong.
Holding Company:-
Sims Metal Management Ltd., US.
Ultimate Holding
Company:-
Sims Metal Management Ltd., Australia.
[Formerly Sims Group Ltd.]
Associated/Affiliated
Companies:-
Sims Group of Companies
All Metal Recovery Cradley Heath Ltd., UK.
All Metal Recovery Ltd., UK.
C Herring & Son Ltd., UK.
Cheque Swap Ltd., UK.
Chiho- Tiande Group Ltd., Cayman Islands.
CIM Trucking Inc., US.
Cooper Metal Recycling Ltd., UK.
Deane Wood Export Ltd., UK.
Dover Barge Co., US.
Dunn Brothers (1995) Ltd., UK.
Electronic Product Stewardship Australasia Pty. Ltd., Australia.
Evans & Mondon Ltd., UK.
Gaukara Co. No. 2 Ltd., PNG.
ITL Logistics GmbH, Germany.
Life Cycle Services Ltd., UK.
LMS Energy Pty. Ltd., Australia.
Metal Dynamics Detroit LLC, US.
Metal Management Arizona L.L.C., US.
Metal Management Inc., US.
Metal Management Indiana Inc., US.
Metal Management Memphis Inc., US.
Metal Management Midwest Inc., US.
Metal Management Northeast Inc., US.
Metal Management Ohio Inc., US.
Metal Management Pittsburgh Inc., US.
Mirec BV, The Netherlands.
Naporano Iron & Metal Inc., US.
New York Recycling Ventures Inc., US.
PNG Recycling Ltd., PNG.
Port Albany Ventures LLC, US.
Proler Southwest Corporation, US.
Reserve Iron & Metal Ltd. Partnership, US.
Richmond Steel Recycling Ltd., Canada.
Rondout Iron & Metal Co. LLC., US.
S3 Interactive Ltd., UK.
SA Recycling LLC, US.
Schiabo Larovo Corporation, US.
Sims Aluminium Pty. Ltd., Australia.
Sims Cymru Ltd., UK.
Sims E - Recycling (NZ) Ltd., New Zealand.
Sims E-Recycling Pty. Ltd., Australia.
Sims FE Mottram Ltd., UK.
Sims Group Australia Holdings Ltd., Australia.
Sims Group Canada Holdings Ltd., Canada.
Sims Group German Holdings GmbH, Germany.
Sims Group Global Trade Corporation, US.
Sims Group Holdings 1 Pty. Ltd., Australia.
Sims Group Holdings 2 Pty. Ltd., Australia.
Sims Group Holdings 3 Pty. Ltd., Australia.
Sims Group Recycling Solutions Canada Ltd., Canada.
Sims Group UK Holdings Ltd., UK.
Sims Group UK Intermediate Holdings Ltd., UK.
Sims Group UK Ltd., UK.
Sims Group UK Pension Trustees Ltd., UK.
Sims Group USA Corporation, US.
Sims Group USA Holdings Corporation, US.
Sims Industrial Pty. Ltd., Australia.
Sims Lifecycle Service Sp z.o.o., Poland.
Sims Lifecycle Services BV, The Netherlands.
Sims Lifecycle Services GmbH, Germany.
Sims Lifecycle Services Kft., Hungary.
Sims Lifecycle Services s.r.o., Czech Republic.
Sims M+R GmbH, Germany.
Sims Metal Management China Holdings Ltd., Hong Kong.
Sims Metal Management Dragon Holdings Ltd., Hong Kong.
Sims Metal Management USA GP, US.
Sims Metrade GmbH, Austria.
Sims Municipal Recycling of New York LLC, US.
Sims Pacific Metals Ltd., New Zealand.
Sims Recycling Solutions A/S, Norway.
Sims Recycling Solutions AB, Sweden.
Sims Recycling Solutions Africa Pty. Ltd., South Africa.
Sims Recycling Solutions Austrian Holding GmbH, Austria.
Sims Recycling Solutions Austrian Intermediate Holdings GmbH, Austria.
Sims Recycling Solutions Cooperatief B.A., The Netherlands.
Sims Recycling Solutions FZE, UAE.
Sims Recycling Solutions Holdings Inc., US.
Sims Recycling Solutions Inc., US.
Sims Recycling Solutions India Private Ltd., India.
Sims Recycling Solutions Ireland Ltd., Ireland.
Sims Recycling Solutions NV, Belgium.
Sims Recycling Solutions Pte. Ltd., Singapore.
Sims Recycling Solutions UK Group Ltd., UK.
Sims Recycling Solutions UK Holdings Ltd., UK.
Sims Recycling Solutions UK Ltd., UK.
Simsmetal East LLC, US.
Simsmetal Holdings Pty. Ltd., Australia.
Simsmetal Industries Ltd., New Zealand.
Simsmetal Properties NSW Pty. Ltd., Australia.
Simsmetal Properties Qld Pty. Ltd., Australia.
Simsmetal Services Pty Ltd., Australia.
Simsmetal West LLC, US.
Simstar Alloys Pty. Ltd., Australia.
SMM - North America Trade Corporation, US.
SMM Gulf Coast LLC, US.
SMM New England Corporation, US.
SMM South Corporation, US.
SMM Southeast LLC, US.
Trishyirays Recycling India Private Ltd., India.
United Castings Ltd., UK.
Universal Inspection & Testing Co. Pty. Ltd., Australia.
04958631
0030512
Group Chief Executive Officer:
Mr. Galdino Jose Claro
Managing Director: Mr. Fred
Steven Knechtel
HK$1,102,280,000.00
(As per registry dated 17-11-2015)
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Name |
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No. of shares |
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Sims Metal Management Ltd. 110 Fifth Avenus, 7/F., NY 10011, New York. |
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1,102,280,000 ========== |
(As per registry dated 17-11-2015)
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Name (Nationality) |
Address |
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Fred Steven KNECHTEL |
32 Fairfield Terr, Short Hills, NJ07078, U.S. |
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Galdino Jose CLARO |
27, Rustic View Road, Greenwich, CT06830, U.S. |
(As per registry dated 17-11-2015)
|
Name |
Address |
Co. No. |
|
Fair Wind Secretarial Services Ltd. |
25/F., Jardine House, 1 Connaught Place, Central, Hong Kong. |
0032181 |
The subject was incorporated on 17th November, 1972 as a private limited
liability company under the Hong Kong Companies Ordinance
.
Originally the subject was registered under the name of Cableton Ltd.,
name changed to Sims Asia Holdings Ltd. on 27th January, 1973 and further
changed to the present style on 10th March, 2009.
Formerly the subject was located at Room 5407-5408, 54/F., Hopewell
Centre, 183 Queen’s Road East, Wanchai, Hong Kong, moved to Room 5501-5503
of the same building in September 2009. The subject further moved to the present
address in November 2015.
The subject changed its directors in 2015.
Apart from these, neither material change nor amendment has been ever
traced and noted.
Activities: Importer, Exporter
and Wholesaler.
Lines: All kinds of
stainless steel materials.
Company Employees: 16.
Group Employees: 5,429. (Year ended 30-06-2015)
Commodities Imported: Europe,
Asian countries
Markets: China, Europe, US
Group Revenue from
continuing operations:-
A$8,852.9 million (Year ended
30-06-2011)
A$9,042.3 million (Year ended
30-06-2012)
A$7,203.1 million (Year ended
30-06-2013)
A$7,036.4 million (Year ended
30-06-2014)
A$6,328.1 million (Year ended
30-06-2015)
Terms/Sales: L/C,
T/T
Terms/Buying: L/C, D/P, O/A
Issued Share Capital: HK$1,102,280,000.00
Group Profit/(Loss) Attributable to Shareholders:-
A$187.3 million (Year ended 30-06-2011)
(A$622.5) million (Year ended
30-06-2012)
(A$466.1) million (Year ended
30-06-2013)
(A$ 88.9) million (Year ended
30-06-2014)
A$109.9 million (Year ended 30-06-2015)
Profit or Loss: Group
made a profit in 2015.
Condition: Business improved
in 2015.
Facilities: Making active use
of general banking facilities.
Payment: Met trade
commitments as required.
Commercial Morality: Satisfactory.
Banker: Bank of America
N.A., Hong Kong Branch.
Standing: Normal.
Sims Metal Management Asia Ltd. is a wholly-owned subsidiary of Sims
Metal Management Ltd. which is a US-based firm.
The ultimate holding company of the subject Sims Metal Management Ltd.
[Sims] is also an Australia-based firm.
The subject moved to the present new address in November 2015.
Sims was a listed company in the United States of which shares are
traded in New York Stock Exchange.
However, it has been delisted since October 2013.
In view of the significant costs associated with maintaining a US
listing, and the fact that the vast majority of the trading of its shares
occurs on the Australian Securities Exchange, or ASX, it voluntarily delisted
its shares from the New York Stock Exchange, or NYSE, on 11th October,
2013. Following the NYSE delisting, its
ADSs trade in the US in the “over-the-counter” (OTC) market. The OTC market is a significantly more
limited market than the NYSE which may result in reduced trading volumes of its
ADSs potentially reducing liquidity in the market for its ADSs.
Sims’s ordinary shares are quoted on the Australian Securities Exchange
under the ASX Code ‘SGM’.
Sims is an Australian domiciled corporation that is incorporated in the
State of Victoria, Australia, and operates under the Australian Corporations
Act. Its principal place of business is
located at 16 West 22nd, Street, 10th Floor, New York, NY 10010 and the
telephone number is (212) 604-0710.
It is a global, unified full-service recycling company focused on
providing efficient end-of-life solutions for obsolete, post-consumer and post-industrial
metal and electronics products.
Sims is one of the world’s largest metals recycling companies on the
basis of its market capitalization and the size and scope of its operations and
marketing capabilities. It operates a
geographically diverse metals recycling business with a network of processing
facilities, many with deep-water port access, supported by an extensive network
of feeder yards from which to source recyclable ferrous and non-ferrous
metals. It has significant positions in
the metals recycling markets of Australasia, the US and the UK. It also has a strategic network of trading
offices in Asia.
Through its SRS (Sims Recycling Solutions) business, it has an
e-recycling business with a global reach and with established operations in the
UK, Continental Europe, North America, a developing presence in the Asia
Pacific region, and South Africa, India and the Middle East.
Sims’ metal recycling operations encompass buying, processing and
selling of ferrous and non-ferrous recycled metals. It is a geographically diverse metals
recycler with a network of processing facilities, many with deep-water port
access, supported by an extensive network of feeder yards from which it sources
recyclable ferrous and non-ferrous metals.
The Metal Recycling business has operations in six countries, but mostly
operates in the US, Australia and the UK.
It buys ferrous metal from metal dealers, peddlers (individuals that
constitute our retail trade), auto wreckers, demolition firms and others who
generate obsolete metal and from manufacturers who generate industrial
metal. It process ferrous metal for
resale using a variety of methods, including sorting, shredding, cutting,
torching, baling or breaking. After
processing, ferrous recycled metal is sold to end users such as EAF mills,
integrated steel mills, foundries and brokers.
It sources non-ferrous metals from manufacturers, known as production
offcuts, and from generators of electricity, telecommunication service
providers and others who generate obsolete metal. Peddlers and metal dealers, who collect from
a variety of sources, also deliver material directly to its facilities.
Sims’ export and import marketing activities are conducted through its
international businesses, being the subject, which is based in Hong Kong and
markets and brokers non-ferrous metals, and Sims Group Global Trade
Corporation, which is based in the US and markets and brokers ferrous
metals. These activities consist of
teams of traders and exclusive agents, marketing and brokering recycled ferrous
and non-ferrous metals and alternative steel making raw materials on its behalf
and third parties.
The subject and Sims Group Global Trade Corporation manage relationships
with a large percentage of its overseas client base in over 20 countries in
various regions, including Asia, Eastern Europe and South America.
For the year ended 30th June, 2015, the revenues of the Group from
continuing operations amounted to A$6,328.1 million (2014: A$7,036.4 million);
made a profit of A$109.9 million (2014: made a loss of A$88.9 million). Its business improved substantially in FY
2015.
The Group is pleased with the progress achieved in FY15. However, external market conditions for metals
recycling remain as difficult as experienced in many years. Slowing internal demand in China has pushed
exported steel into the markets of many of its traditional customers, reducing
both ferrous scrap demand and prices.
Lower ferrous scrap prices have diminished the economic appeal for
collection of more marginal material by its suppliers. In turn, the Group has witnessed a
deterioration in intake volumes, particularly in North America where the level
of competition amongst metals recyclers remains high.
Actions undertaken by the Group in FY15 included the closure of
underperforming and non-strategic e-recycling facilities in the UK and Canada,
which was accomplished on time and on budget.
It also completed the streamlining of the North America Metals
management structure from seven operating regions into three, resulting in
reduced overhead costs and improved communication flow across the businesses.
For the year ended 30th June, 2015, the Group had 5,429 employees.
The subject is fully supported by the Group.
On the whole, consider the subject good for normal business engagements.
Brief personal profile of the principal directors:-
Mr. Galdino CLARO,
B Mechanical Eng. Age 56, Group Chef Executive Officer and Managing Director,
Mr. Claro was appointed Group Chief Executive Officer and Managing
Director of Sims on 4th November,
2013. He is a member of the Safety,
Health, Environment, Community & Sustainability Committee.. Mr. Claro has
nearly 30 0years of global executive leadership experience in the worldwide
metals industry. He served as Executive
Vice President and Chief Executive Officer of Metals & Minerals at Harsco
Corporation from July 2010 to November 2013.
He also held various executive positions over a twenty year period with
Alcoa Inc. such as President of Alcoa China based in Beijing, China and
President of Alcoa Extrusions Europe based in Geneva, Switzerland among
others. Mr. Claro has a Mechanical
Engineering background.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.99 |
|
|
1 |
Rs.101.78 |
|
Euro |
1 |
Rs.73.47 |
|
HKD |
1 |
Rs.8.65 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
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Report Prepared
by : |
ANK |
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.