MIRA INFORM REPORT

Report No. :	487128
Report Date :	23.01.2018

IDENTIFICATION DETAILS

Name :	LEHIGH HEAVY FORGE CORPORATION
Registered Office :	Corporation Trust Center 1209, Orange St Wilmington New Castle Delaware 19801
Country :	United States
Date of Incorporation :	17.07.1997
Legal Form :	Corporation
Line of Business :	Manufactures And Supplies Open-Die Forging.
No. of Employees :	180

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A

Credit Rating	Explanation	Rating Comments
A	Acceptable Risk	Business dealings permissible with moderate risk of default

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

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
United States	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

UNITED STATES - ECONOMIC OVERVIEW

The US has the most technologically powerful economy in the world, with a per capita GDP of $57,300. US firms are at or near the forefront in technological advances, especially in computers, pharmaceuticals, and medical, aerospace, and military equipment; however, their advantage has narrowed since the end of World War II. Based on a comparison of GDP measured at purchasing power parity conversion rates, the US economy in 2014, having stood as the largest in the world for more than a century, slipped into second place behind China, which has more than tripled the US growth rate for each year of the past four decades.

In the US, private individuals and business firms make most of the decisions, and the federal and state governments buy needed goods and services predominantly in the private marketplace. US business firms enjoy greater flexibility than their counterparts in Western Europe and Japan in decisions to expand capital plant, to lay off surplus workers, and to develop new products. At the same time, businesses face higher barriers to enter their rivals' home markets than foreign firms face entering US markets.

Long-term problems for the US include stagnation of wages for lower-income families, inadequate investment in deteriorating infrastructure, rapidly rising medical and pension costs of an aging population, energy shortages, and sizable current account and budget deficits.

The onrush of technology has been a driving factor in the gradual development of a "two-tier" labor market in which those at the bottom lack the education and the professional/technical skills of those at the top and, more and more, fail to get comparable pay raises, health insurance coverage, and other benefits. But the globalization of trade, and especially the rise of low-wage producers such as China, has put additional downward pressure on wages and upward pressure on the return to capital. Since 1975, practically all the gains in household income have gone to the top 20% of households. Since 1996, dividends and capital gains have grown faster than wages or any other category of after-tax income.

Imported oil accounts for nearly 55% of US consumption and oil has a major impact on the overall health of the economy. Crude oil prices doubled between 2001 and 2006, the year home prices peaked; higher gasoline prices ate into consumers' budgets and many individuals fell behind in their mortgage payments. Oil prices climbed another 50% between 2006 and 2008, and bank foreclosures more than doubled in the same period. Besides dampening the housing market, soaring oil prices caused a drop in the value of the dollar and a deterioration in the US merchandise trade deficit, which peaked at $840 billion in 2008. Because the US economy is energy-intensive, falling oil prices since 2013 have alleviated many of the problems the earlier increases had created.

The sub-prime mortgage crisis, falling home prices, investment bank failures, tight credit, and the global economic downturn pushed the US into a recession by mid-2008. GDP contracted until the third quarter of 2009, making this the deepest and longest downturn since the Great Depression. To help stabilize financial markets, the US Congress established a $700 billion Troubled Asset Relief Program (TARP) in October 2008. The government used some of these funds to purchase equity in US banks and industrial corporations, much of which had been returned to the government by early 2011. In January 2009, Congress passed and President Barack OBAMA signed a bill providing an additional $787 billion fiscal stimulus to be used over 10 years - two-thirds on additional spending and one-third on tax cuts - to create jobs and to help the economy recover. In 2010 and 2011, the federal budget deficit reached nearly 9% of GDP. In 2012, the Federal Government reduced the growth of spending and the deficit shrank to 7.6% of GDP. US revenues from taxes and other sources are lower, as a percentage of GDP, than those of most other countries.

Wars in Iraq and Afghanistan required major shifts in national resources from civilian to military purposes and contributed to the growth of the budget deficit and public debt. Through 2014, the direct costs of the wars totaled more than $1.5 trillion, according to US Government figures.

In March 2010, President OBAMA signed into law the Patient Protection and Affordable Care Act, a health insurance reform that was designed to extend coverage to an additional 32 million Americans by 2016, through private health insurance for the general population and Medicaid for the impoverished. Total spending on healthcare - public plus private - rose from 9.0% of GDP in 1980 to 17.9% in 2010.

In July 2010, the president signed the DODD-FRANK Wall Street Reform and Consumer Protection Act, a law designed to promote financial stability by protecting consumers from financial abuses, ending taxpayer bailouts of financial firms, dealing with troubled banks that are "too big to fail," and improving accountability and transparency in the financial system - in particular, by requiring certain financial derivatives to be traded in markets that are subject to government regulation and oversight.

In December 2012, the Federal Reserve Board (Fed) announced plans to purchase $85 billion per month of mortgage-backed and Treasury securities in an effort to hold down long-term interest rates, and to keep short-term rates near zero until unemployment dropped below 6.5% or inflation rose above 2.5%. In late 2013, the Fed announced that it would begin scaling back long-term bond purchases to $75 billion per month in January 2014 and further reduce them as conditions warranted; the Fed ended the purchases during the summer of 2014. In 2014, the unemployment rate dropped to 6.2%, and continued to fall to 5.5% by mid-2015, the lowest rate of joblessness since before the global recession began; inflation stood at 1.7%, and public debt as a share of GDP continued to decline, following several years of increases. In December 2015, the Fed raised its target for the benchmark federal funds rate by 0.25%, the first increase since the recession began. With US GDP growth below 2%, the Fed opted to raise rates three times since then, and in mid-June 2017, the range for the target rate stood at 1% to 1.25%.

Source : CIA

STATUTORY INFORMATION
Address in the order:	1275, DAILY DRIVE BETHLEHEM PA 00000 US United States The address does not correspond to the company. It seems to be incorrectly written since the address could not be located in USA.
Legal Name:	LEHIGH HEAVY FORGE CORPORATION
Trade Names:	LEHIGH HEAVY FORGE CORPORATION
ID:	2774449
Date Created:	1887
Date Incorporated:	7/17/1997
Legal Address:	CORPORATION TRUST CENTER 1209 ORANGE ST WILMINGTON NEW CASTLE DELAWARE 19801
Operative Address:	275 Emery St Bethlehem, Pennsylvania 18015-1984 United States
Telephone:	T: +1 610 332 8100
Fax:	F: +1 610 332 8101
Legal Form:	Corporation
Email:	sales@lhforge.com
Registered in:	DELAWARE
Website:	www.lhforge.com
Contact:	Charles R Novelli, President & Chief Executive Officer
Staff:	180
Activity:	NAICS 1: Iron and Steel Mills and Ferroalloy Manufacturing SIC 1: Blast Furnaces And Steel Mills
Banks:	BANK OF AMERICA
History:
	Lehigh Heavy Forge Corporation was formerly known as BethForge. As a result of the acquisition of BethForge by WHEMCO, Inc., BethForge's name was changed. The company was founded in 1887 and is based in Bethlehem, Pennsylvania. Lehigh Heavy Forge Corporation operates as a subsidiary of WHEMCO, Inc.
	Business Name History LEHIGH FORGE CORPORATION Prior Name
PRESS RELEASE:	Bethlehem company invests $11.5M in Steelton steel manufacturer By Brian Pedersen, February 18, 2014 at 11:00 AM - Last modified: February 18, 2014 at 11:29 AM To meet increased demand for its forged steel components, Lehigh Heavy Forge Corp. in Bethlehem is investing $11.5 million into ArcelorMittal Steelton, a steel and mining company in Steelton, Dauphin County. Lehigh Heavy Forge receives shipments of vacuum-poured ingots (metal materials that can be cast into shapes for further processing) from ArcelorMittal Steelton. The Bethlehem manufacturer then shapes the ingots on its 10,000-ton open die press to create products that include pressure vessels for commercial nuclear and petrochemical markets, generator shafts for the power generation business and shafts and cylinders for capital goods and other end-users, according to a news release. The investment will allow ArcelorMittal to increase capacity and, in turn, deliver more product to Lehigh Valley Forge.
PRINCIPAL ACTIVITY
	Lehigh Heavy Forge Corporation manufactures and supplies open-die forging.
Products/Services description:	It offers steam generators, pressure vessels, reactor vessels, storage casks, heads/domes, tube sheets, closure heads, flanges, risers, and support skirts, as well as shells, including integral nozzles for commercial nuclear industry; forged work rolls, back-up rolls, and specialty rolls for ferrous and nonferrous rolling mills; and generator, turbine rotor, exciter, hydro power, and fan shafts, as well as rotor discs, jackshafts, and rotor bodies for power generation industry. The company also provides forgings for the U.S. Department of Defense; hydraulic cylinder housings, columns, rams, platens, pistons, tie rods, shafts, custom forgings, mill spindles and pinions, and chills for cast iron rolls for capital goods industry; round, round corner square, and custom geometries billets and blooms; and blow out preventer blocks, wye blocks, tension legs, repair clamp blocks, valve bodies, riser joints, spools, and drilling stabilizers for offshore/oil and gas industry. In addition, it offers gyratory crusher, dragline, drum/hoist, and cam shafts, as well as crusher rolls and cams for mining industry; propulsion shafts, rudder stocks, and hull components for marine equipment industry; and ingot conversion, heat treatment, and machining services. Further, the company provides custom open die products.
Brands:	Lehigh Heavy Forge
Sales are:	Wholesale
Clients:	It serves customers in the United States and internationally.
Suppliers:	АО УРАЛЬСКАЯ СТАЛЬ Russia ПАТ МЕТАЛУРГІЙНИЙ КОМБІНАТ АЗОВСТАЛЬ Russia
Operations area:	National
The company imports from	Russia
The subject employs	180 employees
Payments:	No Complaints
LOCATION
Headquarters :	275 Emery St Bethlehem, Pennsylvania 18015-1984 United States
Comments on Address:	NA
Branches:
Related Companies:	Global Headuqarters: Park Corporation 6200 Riverside Dr Cleveland, OH, USA
GROUP STRUCTURE AND SUBSIDIARY COMPANIES
Listed at the stock exchange:	NO
Capital:	NA
Shareholders:	The company does not disclose information on shareholders. The following information has been obtained through private sources and could not be confirmed. Lehigh Heavy Forge Corporation operates as a subsidiary of WHEMCO, Inc.
Management:	Charles R Novelli, President & Chief Executive Officer James Romeo,Vice President Michele M. Vrabel, HR Allan Robertson Bruce Somers, Chief Metallurgist
FINANCIAL INFORMATION
	The company does not make its financial statements public. The following information has been provided by private sources:
USD 2016
Estimated Net Revenue	11 800 000
Cash flow	Normal
LEGAL FILINGS
PATENTS	No found
GOVERNMENT CONTRACTS	No records found
CASES	Lehigh Heavy Forge Corporation v. WCAB (Vogrins) (majority)
TRADEMARKS	No records found
RENEWAL HISTORY	No records found
UCC	No records found.
OFAC Sanctions List Search	The company is not listed in the OFAC list.
SUMMARY
	Founded in 1887, Lehigh Heavy Forge Corporation is a mid-sized organization in the blast furnaces and steel mills industry located in Bethlehem, PA. It has 180 full time employees and generates an estimated $11.8 million in annual net revenue. The company mainly imports from Russia; operating within the national market. It is ACTIVE in DELAWARE; with no negative records.
RISK INFORMATION
DEBTS	Controlled
PAYMENTS	No Complaints
CASH FLOW	Normal
STATUS	Active
INTERVIEW
NAME	NA
POSITION	Secretary
COMMENTS	She confirmed correct address, group, staff number, president’s name and she confirmed that the address in the order is not related to the company.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 63.89
UK Pound	1	INR 88.59
Euro	1	INR 78.12
USD	1	INR 63.77

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	NIS
Report Prepared by :	KET

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

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 are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

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This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.