MIRA INFORM REPORT

 

 

Report No. :

327356

Report Date :

16.06.2015

 

IDENTIFICATION DETAILS

 

Name :

SEAH CHANGWON INTEGRATED SPECIAL STEEL CORPORATION

 

 

Formerly Known As :

POSCO SPECIALTY STEEL CO., LTD.,

 

 

Registered Office :

147, Jeokhyeon-Ro, Seongsan-Gu, Changwon-Si, Gyeongsangnam-Do, Korea 641-370

 

 

Country :

South Korea

 

 

Financials (as on) :

31.03.2015

 

 

Date of Incorporation :

14.02.1997

 

 

Com. Reg. No.:

609-81-29083

 

 

Legal Form :

Co., Ltd by shares

 

 

Line of Business :

Manufacture of Steel Wire. (Round Bars, Flat Bars, Square Bars, Wire Rods, Seamless Pipe)

 

 

No. of Employees :

1,197

 

 

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 :

Slow but correct

 

 

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

SEAH CHANGWON INTEGRATED SPECIAL STEEL CORPORATION

(Ex. Company Name : POSCO SPECIALTY STEEL CO., LTD.,)

Registered Address

147, Jeokhyeon-ro, Seongsan-gu, Changwon-si, Gyeongsangnam-do, Korea

(Old Address System : 65, Sinchon-dong, Chang-won-si, Gyeongsangnam-do, Korea)

Zip Code

641-370

Tel

+82-55-269-6114

Fax

+82-55-269-6901

E-mail

cssinfo@changwonsteel.co.kr;

cs116603@poscoss.co.kr;

ikechang@poscoss.co.kr

Website

www.seahss.co.kr

 

 

Trading Address

5th Fl., Daegong Bldg., 823-21, Yeoksam 1-dong, Gangnam-gu, Seoul, Korea

Tel

+82-55-269-6189

Fax

+82-2-3469-6888

 

 

Type

Export

Industry

Manufacture of Steel Wire

  Main Business

Round Bars, Flat Bars, Square Bars, Wire Rods, Seamless Pipe

 

 

Established (mm/dd/yyyy)

02/14/1997

The Subject owns the premises of registered HQ address.

 

 

Detailed Products

 

Activity

Detailed Products (UNSPSC)

Sell

Bar(30101600)

Sell

Billets(30103300)

Sell

Pipe(40142100)

Sell

Rod(30102400)

Sell

Steel bars(30101604)

 

 

CEO’s

 

Name

Seo Young-Se

Address

 

Date of Birth

07/1955

Title

President & CEO

Sex

Male

Nationality

Korean

 

 

Profiles

 

Capital (KRW)

180,321,750,000

Employees

1,197

Formation

Co., Ltd by shares

A Company of SeAH Group

Bank Details

Woori Bank-Changwon Branch

SC First Bank of Korea

Shinhan Bank

Gyungnam Bank

Corporate Registered No.

194211-0025248

Business Registered No.

609-81-29083

Permit & Licenses

04/09/1997 KS Mark

0/08/1997 JIS

12/12/1997 ISO 9002

05/11/1998 TUV

12/05/2000 ISO 14001

12/01/2002 ISO 9001

01/11/2005 ISO 9001 by KAQ

02/2/2006 ISO 14001 by KAQ

 

Int’l Trade No.: 24013136

Shareholder Position

Name

Shares

%

SEAH BESTEEL CORPORATION(110111-0035794)

19,769,411

54.82

POSCO(174611-0000741)

7,190,000

19.94

SHINYOUNG SECURITIES CO., LTD.(110111-0006612)

7,189,965

19.94

SHINHAN INVESTMENT CORP.(110111-0143448)

1,798,799

4.99

OTHERS

116,175

0.32

TOTAL

36,064,350

100.00

Company History

02/14/1997 Incorporated as CHANGWON SPECIALTY STEEL CO., LTD.

03/16/2004 Agreement on taking over the operation of Changwon Specialty Steel’s Maintenance Business Div. from POSCO MACHINERY & ENGINEERING CO., LTD.

11/26/2004 Awarded US$300 Million Export Top Prize

11/30/2005 Awarded US$400 Million Export Top Prize

02/14/2007 Changed company name to POSCO SPECIALTY STEEL CO., LTD., from CHANGWON SPECIALTY STEEL CO., LTD.

08/30/2013 Increased capital to 180,321,750,000 KRW from 137,218,300,000 KRW

03/18/2015 Changed company name to the present name

 

 

 

 

Management

 

Job Description

 

Title

Name

Nationality

Date of Birth

Education

Vice Chairman & CEO

Mr.

Lee Seung-Hui

Korean

1950.02.

Seoul National University, Korea

Director

Mr.

Lee Ji-Yong

Korean

1958.06.

Sungkyunkwan University, Korea

Director

Mr.

Lee Sang-Eun

Korean

1959.08.

Chunbuk National University, Korea

Director

Mr.

Lee Tae-Sung

Korean

1978.08.

University of Michigan, USA

Director

Mr.

Yoon Seok-Chae

Korean

1961.11.

Korea University, Korea

Director

Mr.

Lee Kyung-Sub

Korean

1965.09.

Korea University, Korea

Director

Mr.

Kim Yang-Soo

Korean

1963.08.

Busan National University, Korea

Director

Mr.

So Jin-Wang

Korean

1961.05.

Chunbuk National University, Korea

Director

Mr.

Cho Soo-Jin

Korean

1961.12.

Busan National University, Korea

 

 

Financials

 

Year / Unit : KRW

Sales

Assets

Net Income

(*)03/2015

269,014,475,065

1,190,718,985,632

-26,592,691,483

(*)2014

1,261,373,573,676

2,125,608,845,491

-20,126,019,247

(*)2013

1,316,781,358,821

1,792,406,906,618

31,703,235,761

(*)2012

1,405,667,101,152

1,496,633,202,983

69,091,484,483

(*)2011

1,662,895,933,177

1,582,729,146,335

127,573,387,534

(*)2010

1,543,122,293,143

1,307,488,976,178

101,900,846,147

2009

1,271,037,122,662

972,260,104,367

64,993,801,409

2008

1,679,748,221,937

1,007,588,365,957

77,316,309,453

2007

1,553,616,007,725

1,062,479,264,361

60,237,906,991

2006

1,147,746,490,710

969,823,927,036

47,436,432,695

2005

1,142,118,666,634

 815,687,254,846

 37,208,984,142

2004

1,006,406,592,810

741,325,076,882

33,469,997,152

2003

729,580,614,108

658,583,823,437

334,594,439

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

 

 

Financial Description

 

Authorized Capital(KRW)

500,000,000,000

Paid-Up Capital(KRW)

180,321,750,000

Total Issues Shares

36,064,350(Common : 27,443,660 / Preferable : 8,620,690)

 

 

Balance Sheet

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Total Assets

1,190,718,985,632

2,125,608,845,491

1,792,406,906,618

Current Assets

382,469,508,382

1,306,997,646,668

633,085,844,426

Cash & Cash Equivalents

17,267,169,519

203,505,388,924

210,666,478,405

Trade Receivables

96,732,299,928

97,910,175,684

110,946,875,035

Other Finance Assets

2,526,585,147

3,110,313,027

57,411,628,403

Inventories

264,602,150,443

288,557,025,836

246,116,545,120

Deferred Income Tax

254,661,460

975,163,050

6,793,172,485

Other Current Assets

1,086,641,885

1,098,297,873

1,151,144,978

Assets to be Sold

-

711,841,282,274

-

Non-Current Assets

808,249,477,250

818,611,198,823

1,159,321,062,192

Non-Current Financial Instruments

3,843,407,572

1,746,508,578

13,278,815,515

Investment_Related Companies

 

 

271,180,623,860

Investment_Real Estates

 

 

2,064,919,482

Tangibles

795,581,376,786

808,152,616,793

864,886,220,452

Intangibles

7,004,969,553

6,892,350,113

6,755,953,769

Other Non-Current Assets

1,819,723,339

1,819,723,339

1,154,529,114

Total Liabilities

494,062,441,172

1,176,873,657,995

533,299,462,765

Current Liabilities

253,364,243,311

968,319,501,033

269,251,277,131

Trade Payables

107,799,006,167

101,766,879,450

150,909,739,998

Short-Term Borrowings

107,912,475,638

108,181,952,997

68,397,967,291

Other Current Financial Debts

32,410,983,641

316,479,115,542

45,744,071,771

Other Current Liabilities

5,241,777,865

7,727,215,621

4,199,498,071

Liabilities to be Sold

-

434,164,337,423

 

Non-Current Liabilities

240,698,197,861

208,554,156,962

264,048,185,634

Long-Term Borrowings

215,928,619,876

182,877,175,917

230,063,061,557

Other Non-Current Financial Debts

 

 

1,214,707,157

Confirmed Salaries

13,560,300,490

12,112,195,477

10,011,515,292

Deferred Income Tax Credit

11,209,277,495

13,564,785,568

22,758,901,628

Capital Stock

180,321,750,000

180,321,750,000

180,321,750,000

Capital Surplus

349,585,419,457

349,585,419,457

349,585,419,457

 

-3,281,730,200

-22,424,672,760

0

Profit Surplus

170,031,105,203

441,252,690,799

729,200,274,396

Total Equity

696,656,544,460

948,735,187,496

1,259,107,443,853

Liab. & Shareholder’s Equity

1,190,718,985,632

2,125,608,845,491

1,792,406,906,618

 

 

Income Statement

Unit : Korean Won

01/01/2015~03/31/2015

As of 12/31/2014

As of 12/31/2013

Sales

269,014,475,065

1,261,373,573,676

1,316,781,358,821

Cost of Sold Goods

-254,506,964,673

-1,194,587,044,795

-1,230,252,313,806

Gross Profit

14,507,510,392

66,786,528,881

86,529,045,015

Selling & Admin. Expenses

-23,441,354,519

-38,721,255,038

-42,014,312,623

Admin. Expenses

-21,278,658,304

-28,525,978,406

-29,867,798,341

Selling & Logistics Expenses

-2,162,696,215

-10,195,276,632

-12,146,514,282

Operating Income

-8,933,844,127

28,065,273,843

44,514,732,392

Finance Profits

-1,314,378,567

-4,721,020,453

-6,623,185,049

Finance Income

7,930,851,729

10,635,105,408

9,591,375,151

Finance Expenses

-9,245,230,296

-15,356,125,861

-16,214,560,200

Other Non-Operating Profits

10,159,192

-47,648,419,100

438,082,972

Other Non-Operating Income

153,089,789

1,183,293,313

1,735,514,079

Other Non-Operating Expenses

-142,930,597

-48,831,712,413

-1,297,431,107

Income Before Taxes

-10,238,063,502

-24,304,165,710

38,329,630,315

Income Taxes Expenses

2,347,505,186

4,178,146,463

-6,626,394,554

Income from Continuous Business

-7,890,558,316

 

 

Income from Stopped Business

-18,702,133,167

 

 

Net Income

-26,592,691,483

-20,126,019,247

31,703,235,761

 

 

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

29,224,115,714

1,868,082,778

67,084,223,364

Cash Flows from Operating

36,891,234,685

1,522,047,712

86,978,094,031

Net Income

-26,592,691,483

-20,126,019,247

31,703,235,761

Adjustment

32,379,612,209

119,074,411,991

81,561,584,574

Changes in Asset/ & Liability

31,104,313,959

-97,426,345,032

-26,286,726,304

Interests Received

1,662,803,403

6,987,791,997

4,491,407,751

Interests Paid

-9,075,260,914

-8,036,390,066

-11,755,360,318

Dividends Received

 

368,376,715

90,100,000

Income Taxes

-254,661,460

1,026,256,420

-12,720,018,100

Cash Flows from Investing

274,345,404,125

4,708,915,342

-194,048,262,089

Cash Inflow from Investing

283,152,635,183

90,382,188,280

31,339,898,877

Cash Outflows for Investing

-8,807,231,058

-85,673,272,938

-225,388,160,966

Cash Flows from Financing

-489,794,908,403

-14,235,718,224

279,489,798,332

Cash Inflows from Financing

140,000,000,000

60,499,876,000

449,840,317,440

Cash Outflows from Financing

-629,794,908,403

-74,735,594,224

-170,350,519,108

Increase/Decrease in Cash

-186,238,219,405

-7,658,720,104

152,525,759,607

Cash at the Beginning of Year

203,505,388,924

211,164,109,028

58,638,349,421

Cash at the End of Year

17,267,169,519

203,505,388,924

211,164,109,028

 

 

Products, Technologies, Services Description

 

Main Products & Services

Structures and Building and Construction and Manufacturing Components and Supplies

Structural materials and basic shapes

Distribution and Conditioning Systems and Equipment and Components

Fluid and gas distribution

Tube and tubing

 

Wire Rods & Bars

 

- Available Grades & Applications

Stainless Steel

Heat Resisting Steel

Steel Machine Structural Use

Steel For Tool & Special Use

Super Alloy

 

- The Available Size & Tolerance

Round & Square Bars

Wire Rods

Wide Flat Bars

 

- Packing

 

Seamless Pipes & Tubes

 

- Available Grades & Applications

- The Available Size & Tolerance

Pipe for Ordinary Piping

Tubes for Boiler & Heat Exchanger

Tubes for Structural Purposes

 

- Packing

 

Product Shapes & Dimensions

- Product Shapes & Dimensions

Annual Production Capacity (Unit : Ton)

Bar & Wire rods:783,000

Seamless Tube & Pipe:17,000

Total 800,000

Technologies Acquired

 

 

 

Trade Partners & Competitors

 

Suppliers

ROTEM

VAI-POMNI

MORGAN

UTAB

NKMZ

Tae Chang Machinery

Dae Kyo ENG.

Customers

Sales Channel

- Domestic : End-User, Wholesalers

- Overseas : Through Int'l Trading Companies, Direct Exporting

 

Conditions

- Sales by customer's demands

- Credit within 75 days

- Granting Credit with collaterals

- Local L/C or L/C

Competitors

KISWIRE LTD.

475, MANGMI 2-DONG, SUYEONG-GU, BUSAN, KOREA

TEL:+82-51-760-1700  FAX:+82-51-757-7379

 

KOSTEEL CO., LTD.

4TH FL., HOUSTORY, 32-4, JEONNONG 2-DONG, DONGDAEMUN-GU, SEOUL, KOREA

TEL:+82-2-2106-0200  FAX:+82-2-581-8800

 

SEAH SPECIAL STEEL CO., LTD.

747, JANGHEUNG-DONG, NAM-GU, POHANG-SI, GYEONGSANGBUK-DO, KOREA

TEL:+82-54-285-4771  FAX:+82-54-285-4095

 

 

Related Parties (Subsidiaries, Joint-Venture & Affiliates)

 

Affiliates

SEAH HOLDINGS CORP(110111-2276809)

SEAH BESTEEL CORPORATION(110111-0035794)

SEAH METAL CO., LTD.(194311-0003292)

SEAH SPECIAL STEEL CO., LTD.(174611-0005478)

KANG NAM CITY GAS CO., LTD.(110111-0385199)

KOREA BUNDY CORP.(134711-0001266)

ESAB SEAH CORP.(180111-0059047)

SEAH LOGISTICS CORP.(151111-0000847)

SEAH ENT CO., LTD(110111-0740707)

SEAH INVESTMENT DEVELOPMENT CO., LTD(120111-0039489)

SEAH COMMUNICATIONS CO., LTD.(110111-0862519)

SEAH INFORMATION SYSTEM CO., LTD.(110111-0613855)

DREAMLINE CORPORATION(110111-1447021)

SEAH TECHNICS CO., LTD.(110111-1243875)

SEAH SOLAR SYSTEMS CO., LTD.(110111-3788655)

HAIDUK CORPORATION(110111-0038011)

HAIDUK STEEL CO.,LTD(110111-2121145)

HOYEON TOURIST LEISURE INDUSTRY CO., LTD(131411-0176612)

SEAHBNK CO.,LTD.(135111-0084924)

OSAN PRECISION CORP.(131311-0029293)

SEAH JAPAN

SEAH STEEL AMERICA INC.

 

 

Corporate Ownership

SEAH HOLDINGS CORP(110111-2276809)

SEAH BESTEEL CORPORATION(110111-0035794)

Major Shareholders

SEAH BESTEEL CORPORATION(110111-0035794)

Cooperative Enterprise

-Insured Company

SAMSUNG LIFE INSURANCE CO., LTD.(110111-0005953)

 

 

Sales by Region (Activity & Markets)

 

Sales/ Unit :Mil KRW

03/2015

2014

2013

Export

53,293

316,870

317,887

Domestic

215,721

944,504

991,390

Total

269,014

1,261,374

1,316,781

The Subject imports from Australia and Canada.

 

 

Court Action

 

No.

 

 

News Clipping

 

--------


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.64.09

UK Pound

1

Rs.99.57

Euro

1

Rs.71.84

 

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.