MIRA INFORM REPORT

 

 

Report No. :

327564

Report Date :

15.06.2015

 

IDENTIFICATION DETAILS

 

Name :

HANWHA TOTAL PETROCHEMICAL CO., LTD.

 

 

Formerly Known As :

SAMSUNG TOTAL PETROCHEMICALS CO., LTD.,

 

 

Registered Office :

103, Dokgot 2-ro, Daesan-eup, Seosan-si, Chungcheongnam-Do, Korea

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

01.08.2003

 

 

Com. Reg. No.:

316-81-04477

 

 

Legal Form :

Co., Ltd by shares

A Company of HANWHA Group

Foreign Direct Investment Corporation

 

 

Line of Business :

Manufacture of Basic Organic Petrochemicals

 

 

No. of Employees :

1,525

 

 

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

HANWHA TOTAL PETROCHEMICAL CO., LTD.

(Ex Company Name : SAMSUNG TOTAL PETROCHEMICALS CO., LTD., “삼성토탈()”)

(Korean Company Name : “한화토탈()”)

Registered Address

103, Dokgot 2-ro, Daesan-eup, Seosan-si, Chungcheongnam-do, Korea

(Old Address System : 411-1, Dokgot-ri, Daesan-eup, Seosan-si, Chungcheongnam-do, Korea)

Building

 

Zip Code

356-874

Tel

+82-41-660-6114

Fax

+82-41-681-4812

E-mail

dongkyoon.kang@hanwha.com

Website

www.hanwha-total.com

Trading Address

24F Samsung Electronics Bldg, 11, Seocho-daero 74-gil, Seocho-gu, Seoul, Korea

(Old Address System : 24F Samsung Electronics Bldg, 1320-1, Seocho 2-dong, Seocho-gu, Seoul, 137-857, Korea)

Tel

+82-2-3415-9409

Fax

+82-2-3415-9410

Other Address

 

Tel

 

Fax

 

Type

Export/Import

Industry

Manufacture of Basic Organic Petrochemicals

  Main Business

Ethylene, Stylene Monomer, SM, P-Xylene, Polyethylene

  Sub Business

 

Established (mm/dd/yyyy)

08/01/2003

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Compounded resin(13111037)

Sell

Resins(13111000)

Sell

Petroleum resins(13111060)

Sell

High Density Polyethylene HDPE(13102017)

Sell

Flouropolymer films(13111206)

Sell

Polyvinyl acetate(13111045)

Sell

Fuel oil(15101700)

Sell

Medium Density Polyethylene MDPE(13102019)

Sell

Polypropylene PP(13102022)

Sell

Benzene(15101507)

Sell

Alcohols or its substitutes(12352104)

Sell

Medium Density Polyethylene MDPE(13102019)

Sell

Styrene acrylonitrile resin(13111026)

Sell

Petroleum and distillates(15101500)

Sell

Low Density Polyethylene LDPE(13102018)

Sell

Solvents(12190000)

Sell

Ethylene propylene EP(13101704)

Sell

Polystyrene PS(13102026)

Sell

Aromatic or heterocyclic compounds(12352005)

Sell

Organic derivatives and substituted compounds(12352100)

 

 

CEO’s

 

Name

Kim Hee-Chul

Address

Suite 1103-2602, 7, Dongcheon-ro 153beon-gil, Suji-gu, Yongin-si, Gyeonggi-do, Korea

Date of Birth

10/10/1964

Title

Co-President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

95,826,580,000

Employees

1,525

Formation

Co., Ltd by shares

A Company of HANWHA Group

Foreign Direct Investment Corporation

Bank Details

Woori Bank-Samsung Corporate Sales HQ Team

Corporate Registered No.

161411-0013066

Business Registered No.

316-81-04477

Permit & Licenses

The Subject acquired ISO 9002 certification, a quality management system, from QA (British Standards Institution Quality Assurance) and received additional certification on LLDPE product of July 1995.

In June 2002, The Subject converted ISO 9002, existing quality management system, ISO 9001:2000 system in order to continuously provide products & services that satisfy customers’ demand.

Also, in February 2001, The Subject acquired ISO 9001:2000 from KFQ (Korean Foundation for Quality) on pipe, electricity, and electronic of plant for resin compound and resin compound product for industrial use.

The Subject acquired ISO 14001 certification in November 1996 for all plants and utility facility within Seosan complex from BSI-QA (British Standards Institution Quality Assurance) of Great Britain, an international ISO standard institute.

- KOSHA 18001 program last February 2000 by Korea Occupational Safety & Health Agency (jointly with Great Britain’s BSI)

- The Subject acquired certifications for around 70 Grade on nonflammable resin and heat resist resin

- In February 2001, The Subject was the first in the domestic chemical industry to acquire QS-9000, an international quality system for automobile component materials, from KFQ (Korean Foundation for Quality).

-On September 2000, The Subject became a member of RCLG (Responsible Care Leadership Group) and plan to enact the roles and responsibilities accordingly.

 

Int’l Trade No.: 45112991

Shareholder Position

Name

Shares

%

HANWHA GENERAL CHEMICALS CO., LTD.(Ex. SAMSUNG GENERAL CHEMICALS CO., LTD 161411-0001243)

9,582,658

50.0

TOTAL HOLDINGS U.K. LIMITED

9,582,658

50.0

TOTAL

19,165,316

100.0

Company History

08/01/2003 Incorporated as SAMSUNG ATOFINA CO., LTD., as a JV between TOTAL HOLDINGS U.K. LIMITED and SAMSUNG GENERAL CHEMICALS CO., LTD.(161411-0001243)

08/05/2003 Registered as a Foreign Direct Investment Corporation

10/05/2004 Changed company name to SAMSUNG TOTAL PETROCHEMICALS CO., LTD.

03/28/2012 Acquired West Sea Power Co., Ltd.(161411-0017448) and West Sea Water Co., Ltd.(161411-0017430)

04/30/2015 Changed company name to the present name

 

 

 

 

Detailed Information

 

Management

 

Job Description

Title

Name

Sex

Inauguration Date

Date of Birth

Co-President & CEO

Mr.

Kim Hee-Chul

Korean

04/30/2015

1964.10.10

Co-President & CEO

Mr.

Francis Rots

French

11/07/2013

1955.10.30

Director

Mr.

Jan Bialpon

French

09/24/2012

1965.05/23

Director

Mr.

Jangacq Moskoni

French

09/12/2014

1957.08.04

Director

Mr.

Kwon Hyuck-Woong

Korean

04/30/2015

1961.03.03

Director

Mr.

Park Jae-Hong

Korean

04/30/2015

1958.02.05

Auditor

Mr.

Hur Shin-Do

Korean

04/30/2015

1963.07.09

Auditor

Mr.

Cho Jung-Hoon

Korean

07/05/2006

1956.04.05

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2015

1,869,497,164,890

6,179,508,171,250

59,996,618,594

(*)2014

8,804,217,772,551

6,328,713,380,931

95,812,226,357

(*)2013

7,869,107,781,595

5,480,892,890,212

414,646,164,661

(*)2012

7,244,364,032,262

4,219,015,022,003

264,469,933,323

2011

6,831,352,984,621

3,948,457,713,672

360,887,523,406

2010

5,626,040,827,649

3,166,970,106,487

317,689,231,615

2009

4,731,235,852,635

3,119,540,097,167

355,969,065,919

2008

5,298,168,967,664

2,811,203,647,086

17,412,775,319

2007

3,752,373,157,912

2,813,222,561,217

269,350,700,933

2006

3,320,846,519,386

2,384,956,857,447

307,266,486,491

2005

2,812,324,971,855

2,289,105,346,652

289,146,078,071

2004

2,694,936,570,269

2,188,321,212,161

377,151,395,184

2003

878,691,572,825

2,058,142,888,433

92,042,607,788

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

 

 

Financial Description

 

Authorized Capital(KRW)

350,000,000,000

Paid-Up Capital(KRW)

95,826,580,000

Total Issues Shares

19,165,316

 

Balance Sheet

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

6,179,508,171,250

6,328,713,380,931

5,480,892,890,212

Current Assets

2,043,194,335,894

2,193,289,808,991

1,862,631,483,579

Cash & Cash Equivalents

386,425,141,302

162,357,422,590

166,008,334,870

Trade Receivables & Other Receivables

572,324,736,308

839,701,776,969

702,641,157,542

Prepaid Expenses

23,333,415,808

22,686,637,840

17,131,104,782

Other Current Assets

194,982,718

1,365,190,908

12,893,184,000

Inventories

1,060,916,059,758

1,167,178,780,684

963,957,702,385

Non-Current Assets

4,136,313,835,356

4,135,423,571,940

3,618,261,406,633

Investment_Subsidiaries

13,310,399,500

13,310,399,500

13,310,399,500

Marketable Financial Instruments

10,564,478,680

10,544,105,031

665,383,272

Long-Term Loans

1,020,543,576

1,054,289,628

1,013,249,000

Long-Term Trade Receivables

2,780,865,226

2,749,715,977

2,628,482,855

Long-Term Prepaid Expenses

92,090,225,674

94,352,326,761

23,999,591,121

Tangibles

3,975,353,345,952

3,964,633,238,551

3,539,820,415,933

Intangibles

24,943,819,031

25,889,064,954

24,133,924,362

Other Non-Current Assets

17,000,000

17,000,000

17,000,000

Deferred Income Tax Assets

16,233,157,717

22,873,431,538

12,672,960,590

Total Liabilities

3,573,880,404,622

3,782,752,939,751

3,022,236,956,646

Current Liabilities

1,705,911,157,795

1,820,683,067,239

1,558,182,011,189

Trade Payables & Other Payables

700,886,372,487

797,119,873,286

654,746,831,738

Short-Term Borrowings

474,306,070,983

606,312,592,035

509,304,113,721

Current Portion of Long-Term Debts

501,045,526,080

401,283,589,666

298,043,549,273

Accrued Income Tax

21,512,937,984

5,182,602,735

85,458,563,720

Other Current Liabilities

8,160,250,261

10,784,409,517

10,628,952,737

Non-Current Liabilities

1,867,969,246,827

1,962,069,872,512

1,464,054,945,457

Debentures

1,446,418,415,407

1,545,955,344,413

1,146,778,443,359

Long-Term Borrowings

400,010,704,650

400,176,630,201

302,135,000,000

Long-Term Debts

3,054,010,050

498,597,120

1,552,089,589

Provision for Severance & Retirement

13,582,263,069

10,590,186,858

13,589,412,509

Other Non-Current Liabilities

4,903,853,651

4,849,113,920

-

Capital Stock

95,826,580,000

95,826,580,000

95,826,580,000

Capital Surplus

864,898,306,667

864,898,306,667

864,898,306,667

Others

-2,246,866,548

-1,917,573,402

-1,342,746,120

Profit Surplus

1,647,149,746,509

1,587,153,127,915

1,499,273,793,019

Total Equity

2,605,627,766,628

2,545,960,441,180

2,458,655,933,566

Liab. & Shareholder’s Equity

6,179,508,171,250

6,328,713,380,931

5,480,892,890,212

 

Income Statement

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

1,869,497,164,890

8,804,217,772,551

7,869,107,781,595

Cost of Sold Goods

1,720,174,212,803

8,431,326,261,132

7,114,059,886,695

Gross Profit

149,322,952,087

372,891,511,419

755,047,894,900

Selling & Admin. Expenses

51,018,381,954

202,145,065,191

205,412,454,433

Operating Income

98,304,570,133

170,746,446,228

549,635,440,467

Finance Income

49,180,695,133

228,236,266,924

169,897,507,453

Finance Expenses

71,566,522,536

282,346,174,737

195,174,954,256

Other Income

6,688,520,532

16,119,117,982

10,797,396,687

Other Expenses

4,522,390,710

18,183,818,975

18,019,118,618

Income Before Taxes

78,084,872,552

114,571,837,422

517,136,271,733

Income Taxes Expenses

18,088,253,958

18,759,611,065

102,490,107,072

Net Income

59,996,618,594

95,812,226,357

414,646,164,661

 

Cash Flows

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Operating Activities Cash Flows

469,268,494,360

52,328,698,851

635,232,369,354

Net Income

59,996,618,594

95,812,226,357

414,646,164,661

Adjustment

122,559,911,177

328,039,318,510

367,288,970,329

Changes in Asset/ & Liability

281,633,715,432

-265,631,900,772

-106,609,981,595

Interests Received

195,894,045

812,433,519

1,274,929,484

Income Taxes

4,882,355,112

-106,703,378,763

-41,367,713,525

Cash Flows from Investing

-90,264,248,097

-661,843,784,220

-1,300,334,938,373

Cash Flows from Financing

-154,936,527,551

605,864,173,089

711,181,694,707

Increase/Decrease in Cash

224,067,718,712

-3,650,912,280

46,079,125,688

Cash at the Beginning of Year

162,357,422,590

166,008,334,870

119,929,209,182

Cash at the End of Year

386,425,141,302

162,357,422,590

166,008,334,870

 

Products, Technologies, Services Description

 

Main Products & Services

The subject’s operations encompass three production units. Naphtha is cracked at the naphtha cracking center to produce ethylene and propylene, which in turn are used as the feedstock for polymer (polyolefin) production. The aromatics plant, meanwhile, uses paraxylene as the feedstock for base materials used in synthetic fabrics and petrochemical products. This third unit covers petrochemical products.

The polymer unit covers high-density polyethylene, low-density polyethylene ,linear low-density polyethylene, ethylene vinyl acetate, medium-density polyethylene , polypropylene and composite polypropylene. The base chemical (olefin and intermediate) operation produces and markets ethylene and propylene as well as paraxylene, styrene monomer, ethylene glycol/ethylene oxide. Finally, the petrochemical product unit deals in LPG, solvents and byproduct fuels.

Annual Production Capacity

(Unit: Thousand M/T)

 

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

HYUNDAI OIL REFINERY CO., LTD.(110111-0090558)

Customers

LOTTE DAESAN PETROCHEMICAL CORPORATION(161411-0014684)

LG CHEM LTD(110111-2207995)

Competitors

BASF COMPANY LTD.

373-15, HWACHI-DONG, YEOSU-SI, JEOLLANAM-DO, KOREA

TEL:+82-61-680-7000  FAX:+82-61-684-7260

 

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

 

Overseas Office

BEIJING OFFICE (CHINA)

ROOM NO 2828, CHINA WORLD TOWER 1, JIANGUOMEN WAIDAJIE, BEIJING 100004, P.R.CHINA

PNONE :86-10-6505-2675 FAX : 86-10-6505-5517

 

SHANGHAI OFFICE (CHINA)

UNIT 903~05, HONG KONG PLAZA, 283 HUAI HAI ROAD(M) , SHANGHAI 200021, P.R.CHINA

PHONE : 86-21-6390-6105 FAX : 86-21-6390-6230

 

HONG KONG

3207-11, TOWER 1, THE GATEWAY, 25, CANTON RD., KLN., HONG KONG

PHONE : 852-2110 -1148 FAX : 852-2111- 4565

 

SHENZHEN OFFICE (CHINA)

ROOM 2304, EXCELLENCE TIME SQUARE BUILDING, NO.4068 YITIAN ROAD, FUTIAN DISTRICT, SHENZHEN, CHINA P.C. 518048

PHONE : 86-755-2399-6516 FAX : 86-755-2399-6510

 

TOKYO OFFICE (JAPAN)

AKASAKA SHASTA-EAST 8F, 4-2-19 AKASAKA, MINATO-KU, TOKYO 107-0052, JAPAN

PNONE : 81-3-5570-2857 FAX : 81-3-5570-2825

 

OSAKA OFFICE (JAPAN)

6F, CRYSTAL TOWER, 1-2-27, SHIROMI, CHUO-KU, OSAKA 540-6006, JAPAN

PHONE : 81-6-6949-3172 FAX : 81-6-6949-3035

Liaison Office

 

Overseas Branch

 

Joint Venture

 

Subsidiary

DONGKWAN SAMSUNG TOTAL PETROCHEMICALS CO., LTD.(CHINA)

SAMSUNG TOTAL PETROCHEMICALS(SHANGHAI) CO., LTD.(CHINA)

Corporate Ownership

 

Major Shareholders

HANWHA GENERAL CHEMICALS CO., LTD.(161411-0001243)

TOTAL HOLDINGS U.K. LIMITED

Cooperative Enterprise

BOC GASES KOREA(UK)

HANWHA PETROCHEMICAL CO., LTD.(KOREA)

GENERAL ELECTRIC INTERNATIONAL, INC

HYUNDAI OILBANK CO., LTD.( 110111-0090558)

 

Sales by Region (Activity & Markets)

 

Sales/ Unit : Mil. KRW

06/2011

2010

2009

Export

2,173,431

3,682,998

3,249,378

Domestic

924,932

1,943,043

1,481,858

Total

3,098,363

5,626,041

4,731,236

 

 

Court Action

 

No.

 

 

News Clipping

 

-------

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.03

UK Pound

1

Rs.99.27

Euro

1

Rs.71.90

 

 

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.