Exchange Commission on October 4, 1989. Its incorporators led by incumbent
Chairman and President, Mr. Salvador P. Malbarosa, originally intended that the
Company only become a dealer of industrial consumables whenever such an
opportunity would present itself, considering its limited capitalization. Upon its
registration, the Company’s authorized capitalization was only P4,000,000.00,
with paid up capital of P355,000.00.
At that time, Mr. Malbarosa was preparing to immigrate to the U.S.A. and was
in process of retiring from S.E.A. Development Corporation, where he was President
of several operating companies. In February 1990, when Eutectic Corporation
abruptly decided to remove the distributorship of the EUTECTIC + CASTOLIN line
of protective maintenance and repair welding products and processes from Philtectic
Corporation, it was offered to Euromerica on a trial and conditional basis.
Upon its successful compliance of the basic requirements and expectations of
Eutectic, Euromerica was formally appointed as sole and exclusive distributor for
the Philippines on April 9, 1990.
The Company started its operation on March 1, 1990, with a core group of a
dozen people, whose combined experiences in the field of repair and maintenance
welding was in the range of 60 years. It wrote its first invoice on March 19, 1990.
From that time on, the Company celebrated its anniversary on March 19 of every
Annual gross sales grew steadily from P8.5 million in 1990 to P36.0 million
plus in 1995. This year (1996), sales will be very close to P 50.0 million, which
should double in three years (1999) to P 100.0 million. To this day, the Company
has remained as a one-product-line company. Soon, it will be ready to take on
additional product line or two, which can dramatically contribute to the growth of
In view of the growth of its business, in 1995 the Company has been able to
obtain approval from the Securities and Exchange Commission to increase its
authorized capital stock to P8.0 million. At the end of this year, P 7.0 million shall
have been fully paid-up, and the remaining balance fully subscribed and paid-up by
the end of 1997.
Company shareholdings are held as follows: 81.83% Filipinos, 9.7%
Americans, and 8.47% Australian. As a policy, employees are encouraged to
become stockholders. In order to give more employees the opportunity to become
stockholders, P 400,000.00 of the remaining unsubscribed stocks are planned to be
reserved for the employees’ credit cooperative.
The Company has been able to establish a good track record with its principal
banker, Rizal Commercial Banking Corporation, where its Omnibus Line is in process
of being increased from P2.3 million to P3.3 million. The increased line will help
the Company a great deal for its working capital and imports requirements.
Currently, inventories range from P8.0 million to P9.0 million, landed cost,
while trade receivables are in the range of P11.0 million.
From the dozen or so employees at the beginning of the Company’s
operations in 1990, today there are 43, including a Technical Advisor from L & T-
Eutectic and a Resident Technical Consultant, an Australian metallurgist. 26 are in
direct selling activities, while the rest are in accounting and finance, administration,
and direct sales support.
The Board of Directors is composed of six (6) Filipinos led by S. P. Malbarosa,
two (2) Americans, and one Australian. The Executive Committee, Management
Committee, and Technical Committee are active bodies within the Company
As principal, Castolin + Eutectic S.A. actively supports and monitors the
activities of Euromerica. In January 1994, the Operation Sea Change program was
launched to increase the Eutectic market share in Southeast Asia. For this purpose,
L & T - Eutectic, E+C’s partner in India, was appointed as Marketing Associate to
oversea the program. As part of their active support of this program, L & T –
Eutectic had deployed a Technical Advisor with each distributor in the region.
At the end of the first full calendar year operation of Operation Sea Change,
Euromerica was the recipient of the “Most Outstanding Distributor” award, in
recognition of its best overall performance under Operation Sea Change.
Next year, the Company intends to introduce the “Conservationist of the
Year” award scheme, in conjunction with the Maintenance Association of the
Philippines (MAPHIL) and the Philippine Society of Mechanical Engineers (PSME).
This program recognizes individuals and institutions that undertake effective year
round activities to conserve energy and natural resources by prolonging the life of
machine and equipment parts, and in the process increase plant productivity, reduce
down time, reduce machine parts inventories, and minimize the use of foreign
The write-up, entitled EUTECTIC + CASTOLIN – THE ESSENCE OF ITS
BUSINESS, is attached as part of this document.
Addendum to “COMPANY PROFILE”
In view of the impact to the Company’s operations of the ongoing economic and
financial turmoil in the region, seriously disrupting inventory turnover, collection of
receivables, and profitability, at a special meeting of stockholders on November 17,
1998, Management’s proposal to increase the Company’s capital stock by 25% to P
10.0 million was approved. To date, around P 700,000.00 of
the P 2.0 million increase had been subscribed and paid-up.
In this regard, Management has been authorized by the stockholders to offer
unsubscribed shares to interested third parties, which so far has not been invoked.
The Company undertook all kinds of cost-cutting measures in the past year-
and-one-half; including downsizing of its structure. We have decided that now is
not the time to grow and generate profits. To survive at break-even under a
depressed market is a more realistic objective. We are optimistic that this year,
we will recoup part of the losses incurred in 1998. At the same time, we are
optimistic, though cautiously, that the Philippine economy will be on the road to
recovery sometime in the second semester of this year. We intend to be there
when it happens.
March 23, 1999
Second Addendum to “COMPANY PROFILE”
In response to some restructuring in the operations and product lines of
EUTECTIC, where emphasis was directed to the strengthening of their specialty
maintenance welding electrodes and powder alloys, early in 2002, we have acquired
representation in the Philippines of the equally specialized semi-automatic continuous
flux-cored wire electrodes of WELDING ALLOYS of the United Kingdom. We have
since converted a good number of our key accounts to the use of WELDING ALLOYS
wire electrodes for their maintenance requirements.
A couple of years earlier, we introduced into the market the now popular line of
EUROWELD AWS standard quality welding electrodes, which are competitively
Lastly, in view of the trend in industries to farm out repair and maintenance jobs,
we have amended the charter of Euromerica to include among its secondary purposes
contracting as an activity. We have since doing contracting on a limited and very
Third Addendum to “COMPANY PROFILE”
Initially, our plan was to be a welding contractor only, being a supplier of a well-
known brand of repair and maintenance electrodes. However, most of the jobs we got
for repair required not only welding but machining as well. So, we were forced to buy
a lathe machine in 2006. We thought big enough to machine components brought to
us then. Later on, we got jobs that were too big for our lathe machine forcing us to
subcontract them to other big machine shops.
In 2007, so as not to expose our activities to other machine shops, we enrolled
in the Technology Research Incubation (TBI) Program of the Metals Industry Research
and Development Center (MIRDC) in Bicutan, Taguig City. We knew that MIRDC had
better facilities in terms of available machinery and equipment that can be rented by
us, saving us the inconvenience of bringing the parts elsewhere for machining or
related activities which we are not capable of doing ourselves.
Two (2) years later, we graduated from the TBI Program so we transferred our
workshop for the better and bigger place allowing us to relocate our workshop as well
as our office in one place at Bormaheco Compound, Km. 17, West Service Road,
Our facilities are much better now after acquiring more machineries and
equipment for welding and machining jobs.We are now accepting repair works not
only for our workshop but also on-site repairs elsewhere in the Philippines.