Battery Co — State Owned Enterprises- Company Overviews (BUS-c65019b0)

# Template State Owned Enterprises- Company Overviews OCPA - Ministry of Industry & Minerals Note: All currency figures are in 000's of Iraqi Dinars unless otherwise noted. 1. General Information Company Name: State Company for Battery Manufacturing Sector Chemical Brief Description Manufacturer of automotive lead acid batteries and dry cell batteries at 4 factories. Revenue in 2002 (Iraqi Dinars '000s) 10800000 # of Employees 1929 Annual Employee Salaries & Bonus 3324000 Headquarters Address Baghdad, Alwazereya PO 190 2. Company Highlights Company currently can not sell profitably because looted batteries are flooding market at cut-rate prices. Largest customer was to Army for trucks and helicopters (50% of revenue). 88% of revenue generated from car batteries. Without MOU subsidies, Company is not profitable. Allocated $1.0M USD for 2H 2003 operating budget and provided with 2mw off of grid. 3. Facilities Name Province City Grid Damage % Power Needs Waziriah #1 Baghdad 2 mw Waziriah #2 Baghdad MB436917 2 mw Al Nour Dry Cell Battery Factory Al Nour MB2886 0.2 1 mw Handari Lead Smelter Handari MB2287 1 mw Value of All Plant & Equipment Before War, and Initial Purchase Dates and Prices for Major Items Factories build in 1985 by Japanese contractor. 4. Products Product Name Unit Measurement Design Capacity Available Capacity 2002 Production 2002 Revenue Lead for Batteries Tons 3750 3000 2500 Lead Acid Batteries Unit (55 ah) 670000 570000 511000 88% of total Dry Cell r6 Unit 18000000 8000000 2800000 Dry Cell r20 Unit 18000000 10000000 4200000 Dry cell r14 Unit 18000000 10000000 2700000 Description of Importance of Products to Other Iraqi Industries None. Imports could satisfy demand. 5. Customers Customer Name 2002 Revenue Subsidized (Y/N) Products Sold to Customer and Unit Pricing Iraqi Army 50% of total Vehicle batteries Shopping Centers Vehicle batteries and dry cells #3 6. Suppliers Supplier Name 2002 Purchases Subsidized (Y/N) Products Purchased and Unit Pricing Local Suppliers 4000000 Mostly lead recovery smelters Imports 2000000 Car battery parts #3 Current Payment Terms From Suppliers 7. Imports & Exports 2002 Import Markets for Raw Materials Europe, China and Middle East. Potential Import Markets in Free Market 2002 Export Markets for Finished Products None Potential Export Markets in Free Market 8. Competition Description of Competitive Situation Heavy competition for both car and dry cell batteries from imports (especially from China). Market Share Description In 2002, Company had 47% market share for car batteries. Was constrained by capacity of factory, not demand. For dry cell batteries, Company had only 13% market share. 9. Summary of War Damage & Looting of Property & Equipment Description of Damage Limited damage. Only Nour factory was 20% damaged. However, finished product inventory was completely looted. Current Operating Status Not operating. No demand in market due to looted supplies flooding market at cut-rate prices. Immediate Property & Equipment Needs To Restart Operations None Total Cost to Return to Pre-War Condition Minimal