Hong Kong-based Lee & Man Paper Manufacturing has broken its promise to boost its $600 million project to come online in June 2013 due to tough financial situation.
A representative of Lee & Man last week reported that its paper plant could officially run in December 2013.
He said in meeting with local Hau Giang People’s Committee that the project’s delays were the result of the global economic recession and lack of staffs. It plans to call for tender in February 2013 then starting its construction soon.
Lee & Man got investment certificates in 2007 to build two factories in Song Hau Industrial Park in southern Hau Giang province, which could produce 150,000 tonnes of pulp and 420,000 tonnes of packaging paper.
Currently, Lee&Man smoothed a 82.8 hectare site, imported machines and built three warehouses, internal roads and a small workshop, according to Hau Giang Provincial Industrial Zones Management Authority.
Nguyen Thanh Nhon, deputy chairman of Hau Giang Provincial People's Committee, said the province would have strongly supported the company’s proposal.
“The company should also increase recruitment. Currently, the company’s recruitment is too slow at only 16 people with 150 people to be trained,” he said
Previously, Hau Giang Provincial People’s Committee announced to revoke investment certificate of Lee & Man Paper if it failed to detail construction timeline of long-delayed manufacturing project.
Lee & Man Paper Manufacturing is one of the leading paper manufacturers in China, specialising in the production of a range of linerboard and corrugating medium used to produce cardboard boxes for packaging purposes.
Currently, the paper manufacturer has four paper production plants in China, located at Hongmei and Huangyong in Dongguan, Changshu in Jiangsu and Yongchuan in Chongqing. The project in Hau Giang is the first manufacturing facilities Lee & Man has outside China.