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Rebecca Kanthor
PLASTICS NEWS CHINA
Published: August 12, 2013 9:36 am ET
Tongxiang, China-based fiberglass manufacturer Jushi Group Co. said is has delayed plans to open a factory in Egypt due to political unrest.
In an emailed statement, Jushi said the plant was originally scheduled to start in the third quarter of 2013, but it has been delayed until the fourth quarter.
The statement blamed the political situation in Egypt is still not clear. Egypt's military ousted President Mohamed Morsi in July.
Jushi has invested $220 million in the Ain Soukhna, Egypt, plant. When it opens, it will have capacity to produce 80,000 metric tons of fiberglass annually.
The plant is Jushi's first outside China, and will serve customers in the European Union, Middle East and India.
According to the company, the plant has not sustained any damage from the current political unrest. The company said it is following the political situation closely, reserving production materials and adjusting personnel arrangements.
"The continuous running of the Egyptian plant also relies on the political stability of Egypt, the stable supply of water, electricity, [natural gas] and the safety of the infrastructures," the statement said. "We will work hard to communicate with Egyptian government and Chinese embassy in Egypt to be aware of the political dynamics and ensure the plant will start commissioning in a relatively favorable external environment."
The company added it still considers the plant "a miracle in the project construction history of Egypt, as such a huge project only took a little more than one and half year to obtain all the government approvals and finalize all major works." | |
