MIRA INFORM REPORT

 

 

Report No. :

511627

Report Date :

29.05.2018

 

 

 

IDENTIFICATION DETAILS

 

Name :

EMIRATES STEEL INDUSTRIES PJSC (ESI)

 

 

Registered Office :

Corniche Road, 5th Roundabout Abu Dhabi Industrial City (ICAD), Mussafah Industrial Area PO Box 9022, Abu Dhabi

 

 

Country :

United Arab Emirates

 

 

Year of Establishment :

1998

 

 

Legal Form :

Public Joint Stock Company

 

 

Line of Business :

Subject is engaged 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.

 

 

No. of Employees :

600

 

 

RATING & COMMENTS

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

 

MIRA’s Rating :

A

 

Credit Rating

Explanation

Rating Comments

A

Acceptable Risk

Business dealings permissible with moderate risk of default

 

Status :

Good

 

 

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

(30.09.2017)

Current Rating

(31.12.2017)

United Arab Emirates

A2

A2

 

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 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 from the oil and gas sector to 30%.

 

Since the discovery of oil in the UAE nearly 60 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 of 2008-09, 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 Government that was refinanced in March 2014.

 

The UAE’s dependence on oil is a significant long-term challenge, although the UAE is one of the most diversified countries in the Gulf Cooperation Council. Low oil prices have prompted the UAE to cut expenditures, including on some social programs, but the UAE has sufficient assets in its sovereign investment funds to cover its deficits. The government reduced fuel subsidies in August 2015, and has announced plans to introduce excise and value-added taxes by January 1, 2018. The UAE's strategic plan for the next few years focuses on economic diversification, promoting the UAE as a global trade and tourism hub, developing industry, and creating more job opportunities for nationals through improved education and increased private sector employment.

 

Source : CIA

 

SUMMARY

 

Company Name                                    : EMIRATES STEEL INDUSTRIES PJSC (ESI)

Trading As                                            : EMIRATES STEEL

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                                               : Manufacturers of reformed steel bars

Financial Condition                                : Undetermined

Payments                                             : No Complaints

 

 

Company name

 

COMPANY NAME: EMIRATES STEEL INDUSTRIES PJSC (ESI)

 

TRADING AS: EMIRATES STEEL

 

 

ADDRESS

 

Registered & Physical Address

 

Street               : Corniche Road, 5th Roundabout

Area                 : Abu Dhabi Industrial City (ICAD), Mussafah Industrial Area

 

PO Box                        : 9022

 

Town                : Abu Dhabi

Country             : United Arab Emirates

 

Telephone         : (971-2) 5511187 / 5072134 / 5073860

Facsimile          : (971-2) 5510911 / 5515113

Email                : inquiry@esi-steel.com / inquiry@emiratessteel.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.

 

 

KEY PRINCIPALS

 

 

            Name                                                                Position

 

HE Saif Mohamed Al Hajeri                                            Chairman

 

HE Alyazia Al Kuwaiti                                                     Director

 

HE Jamal Salem Al Dhaheri                                           Director

 

HE Ahmed Salem Al Dhaheri                                          Director

 

HE Noora Obaid                                                            Director

 

HE Saeed Ghumran Al Romaithi                                     Chief Executive Officer

 

Stephen J Pope                                                                        Chief Financial Officer

 

Jean Francois Liesch                                                     Chief Operating Officer

 

Hassan Shashaa                                                           CEO Advisor

 

Juma Al Mansouri                                                          Sales Manager

 

Mubarak Harbi Al Khaili                                                  Marketing Manager

 

Jasem Al Khateri                                                           Human Resources Manager

 

Tariq Al Afeefi                                                               Audit Manager

 

Saeed Khalfan Al Ghaferi                                               Supply Chain Manager

 

Ms Anjy J P                                                                  Executive Assistant to Supply Chain Manager

 

 

LEGAL FORM & OWNERS

 

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.

 

 

AFFILIATED COMPANIES

 

Abu Dhabi Basic Industries Corporation (ADBIC)

Abu Dhabi

 

Emirates Steel Co Ltd

PO Box: 2330

3rd Floor, Tower 3

Novotel Business Park

Al Khalidiyah

Dammam 31451

Saudi Arabia

Tel: (966-13) 8141110 / 8580203 / 8570200

 

 

OPERATIONS

 

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.

 

 

 

FINANCIAL DATA

 

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.

 

 

BANKERS

 

National Bank of Abu Dhabi

Sheikh Khalifa Street

PO Box: 4

Abu Dhabi

Tel: (971-2) 6345777 / 6327113 / 6335262

Fax: (971-2) 6336078

 

 

PAYMENT HISTORY

 

No complaints regarding subject’s payments have been reported.

 

 

GENERAL COMMENTS

 

 

Please note that the subject does not also trade under the name “Emirates Steel”, it is solely known as “Emirates Steel Industries PJSC (ESI)”.

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. 

The subject and its shareholders/owners have been searched in the following databases; Office of Foreign Assets Control (OFAC), United Nations Security Council Sanctions, Australian Sanctions List, US Consolidated Sanctions List, EU Financial Sanctions List and UK Financial Sanctions List and nothing adverse could be found on the exact names listed within the report.

 

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

INR 67.44

UK Pound

1

INR 89.88

Euro

1

INR 79.00

UAE Dh

1

INR 18.47

 

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

 

 

INFORMATION DETAILS

 

Analysis Done by :

PRA

 

 

Report Prepared by :

DNS

 

 

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)

 

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.