|
Report No. : |
339925 |
|
Report Date : |
07.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
EMIRATES STEEL INDUSTRIES PJSC (ESI) |
|
|
|
|
Registered Office : |
Corniche Road Mussafah
Industrial Area, PO Box: 9022, Abu Dhabi |
|
|
|
|
Country : |
United Arab Emirates |
|
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|
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Year of Establishment : |
1998 |
|
|
|
|
Legal Form : |
Public Joint Stock Company |
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|
|
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Line of Business : |
Manufacture of Reformed Steel Bars. |
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|
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No. of Employee : |
600 |
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 |
|
|
|
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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) |
|
United Arab Emirates |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
UNITED ARAB
EMIRATES - ECONOMIC OVERVIEW
The UAE has an open economy with a high per capita income and
a sizable annual trade surplus. Successful efforts at economic diversification
have reduced the portion of GDP based on oil and gas output to 25%. Since the
discovery of oil in the UAE more than 30 years ago, the country has undergone a
profound transformation from an impoverished region of small desert
principalities to a modern state with a high standard of living. The government
has increased spending on job creation and infrastructure expansion and is
opening up utilities to greater private sector involvement. The country's free
trade zones - offering 100% foreign ownership and zero taxes - are helping to
attract foreign investors. The global financial crisis, tight international
credit, and deflated asset prices constricted the economy in 2009. UAE authorities
tried to blunt the crisis by increasing spending and boosting liquidity in the
banking sector. The crisis hit Dubai hardest, as it was heavily exposed to
depressed real estate prices. Dubai lacked sufficient cash to meet its debt
obligations, prompting global concern about its solvency and ultimately a $20
billion bailout from the UAE Central Bank and Abu Dhabi-emirate government that
was refinanced in March 2014. Dependence on oil, a large expatriate workforce,
and growing inflation pressures are significant long-term challenges. The UAE's
strategic plan for the next few years focuses on diversification and creating
more opportunities for nationals through improved education and increased
private sector employment.
|
Source
: CIA |
Company Name :
EMIRATES STEEL INDUSTRIES PJSC (ESI)
Also Known As :
EMIRATES IRON & STEEL FACTORY (EISF)
Country of Origin :
Abu Dhabi, United Arab Emirates
Legal Form :
Public Joint Stock Company
Registration Date :
1998
Trade Licence Number : 1005740
Chamber Membership Number :
217434
Issued Capital :
UAE Dh 1,000,000
Paid up Capital :
UAE Dh 1,000,000
Total Workforce : 600
Activities :
Manufacture of reformed steel bars.
Financial Condition :
Undetermined
Payments :
Nothing detrimental uncovered
EMIRATES STEEL INDUSTRIES PJSC (ESI)
EMIRATES
IRON & STEEL FACTORY (EISF)
Registered &
Physical Address
Street : Corniche
Road
Area : Mussafah
Industrial Area
PO Box : 9022
Town : Abu Dhabi
Country : United Arab Emirates
Telephone : (971-2) 5511187
/ 5072134
Facsimile : (971-2)
5510911 / 5515113
Email : inquiry@esi-steel.com
Premises
Subject operates from a large suite of offices and a factory that are
owned and located in the Industrial Area of Abu Dhabi.
Name Position
HE Hussain J Al Nowais Chairman
HE Abu Baker Khouri Vice
Chairman
HE Fahad Saeed Al Raqbani Director
HE Mohamed Rashed Al Hameli Director
HE Saif Mohamed Al Hajeri Director
HE Suhail Mubarak Bin Athaeeth Al Ameri Director
HE Jamal Salem Al Dhaheri Director
HE Saeed Ghumran Al Romaithi Chief
Executive Officer
Ahmed Salem Al Dhaheri Chief
Commercial Officer
Stephen J Pope Chief
Financial Officer
Juma Al Mansouri Commercial
Manager
Masoud Abu Dayaki Finance
Manager
Abdulaziz Al Amiri Public
Relations Manager
Mubarak Harbi Al Khaili Marketing
Manager
Tariq Al Afeefi Audit
Manager
Mubarak H Al Mansouri Administration
Manager
Saeed Khalfan Al Ghaferi Logistics
Manager
Paul Smyth Engineering
Manager
A N Venkat Sales
Manager
Profile on HE
Hussain J Al Nowais
Hussain J Al Nowais has over 25 years of combined experience in business
management, banking, project finance, investment, as well as hospitality and
real estate. In addition, he has a proven track-record in the development of
industrial, infrastructure, and energy projects. Al Nowais has been actively
involved in setting up new businesses and in the acquisition of existing
companies, primarily in the Gulf States and the broader Middle East. Hussain Al
Nowais is presently Chairman of several public companies and institutions, such
as The General Holding Corporation (Senaat), National Petroleum Construction
Company (NPCC), Khalifa Fund for Enterprise Development, Waha Capital and
Emirates Steel. He is also a board member of Sheikh Khalifa University for Science
& Technology. A UAE national, born in Abu Dhabi, Al Nowais holds a Bachelor
of Arts in Business Administration with an emphasis on Finance from Lewis &
Clark College in Portland, Oregon, USA. He has since attended various Executive
Management courses at INSEAD in France and London Business School in the UK.
Date of Establishment : 1998 (Commercial
production began in October 2001)
Legal Form : Public Joint Stock
Company
Trade Licence No. : 1005740
Chamber Member No. : 217434
Issued Capital : UAE Dh 1,000,000
Paid up Capital : UAE Dh 1,000,000
Name of
Shareholder (s) Percentage
General Holding Corporation 100%
PO Box: 4499
Abu Dhabi
Tel: (971-2) 6144444
Fax: (971-2) 6312857
Email: info@ghc.ae
General Holding Corporation is wholly owned by the Abu Dhabi government.
Abu Dhabi Basic Industries Corporation (ADBIC)
Abu Dhabi
Activities: The company specialises in manufacturing high yield reformed steel bars
(or rebar), in sizes 10mm to
32mm in diameter and 12 meters in length, direct reduced iron, steel
billets, heavy sections, wire rod, and rebar in coil.
The company has been involved in prestigious projects such as the
Emirates Palace Hotel in Abu Dhabi, the Corniche Development project, the Dubai
Airport Expansion project, the Dubai Marina Towers, Shangri La Hotel in Dubai,
the Four Seasons Hotel in Doha and water and power projects in Sharjah and
Fujairah amongst others.
With a view to achieve the strategic
ambitions set by GHC and the Government of Abu Dhabi, Emirates
Steel has initiated an expansion program based on a phased approach:
In January 2006, the Company launched its Phase
1 Expansion program involving the purchase and
construction of a 1.6 million MTPA Direct Reduction Plant (DRP), a 1.4
million MTPA Steel Melt Plant (SMP), a 0.62 million MTPA Rebar Rolling Mill
(RM2), a 0.48 million MTPA Wire Rod and Coil Rolling Mill (RM3), together with
associated infrastructure and facilities.
In February 2008, Emirates Steel launched its
Phase 2A Expansion program comprising a 1.6 million MTPA DRP, 1.4 million MTPA
SMP, and associated infrastructure and facilities.
In November 2009, the Company launched its
Phase 2B Expansion program comprising a 1 million MTPA Heavy Sections Rolling
Mill (RM4).
Phase 1 was successfully completed in June 2009; Phase 2A was completed
in April 2011, while Phase 2B was commissioned in December 2011. For further growth, Emirates Steel is considering a number of
potential Greenfield investment opportunities
and acquisitions.
In 2012, the company began producing at a capacity of 3.5 million MTPA,
following two expansions and the investment of UAE Dh 11 billion (US$ 3
billion).
Import Countries: Europe and Asia
Subject has a workforce of approximately 600 employees.
Companies registered in Abu Dhabi, United Arab Emirates are not legally required
to make their accounts public and no financial information was released by the
company or submitted by outside sources.
National Bank of Abu Dhabi
Sheikh Khalifa Street
PO Box: 4
Abu Dhabi
Tel: (971-2) 6345777 / 6327113 / 6335262
Fax: (971-2) 6336078
No complaints regarding subject’s payments have been reported.
Despite sluggish demand levels across the global steel industry, excess
steelmaking capacity in the world markets and continuing volatility in raw
material costs, Emirates Steel, a Senaat portfolio company, fared well in 2013
with its revenues hitting AED 6.5 billion (c. US$ 1.8 billion); almost eight
per cent higher than in 2012.
Production of long products in 2013 reached 2.6 million tons, an
increase of 12% over 2012; of which, 1.7 million tons were rebar, 316,000 tons
structural steel and 573,000 tons wire rod. Encouraged by a buoyant project
market in the region, the steelmaker sold 3.0 million tons of product in 2013,
of which 1.9 million tons were sold in the domestic UAE market. The balance was
exported to a diverse range of markets, including Europe, the Far East, the
Americas and the Middle East.
In the Middle East and North Africa (MENA) region, the World Steel
Association (WSA) expected steel demand to grow by 1.7% only, to 64.3 million
tons, in 2013 - after 2.2% growth was recorded in 2012. In 2014 the WSA
forecasts steel demand in the region to grow by 7.3%; to reach 69 million tons.
HE Al Romaithi believes that construction projects in the GCC will be the key
driver in supporting the steel industry’s growth in near term, followed by oil
and gas, petrochemicals and other infrastructure projects.
During the course of this investigation nothing detrimental was
uncovered regarding subject’s operating history or the manner in which payments
are fulfilled. As such the company is considered to be a fair trade risk.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.40 |
|
|
1 |
Rs.101.19 |
|
Euro |
1 |
Rs.73.89 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
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|
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.