CAIRO: Agrium Egypt will not make an announcement on its future until the parent company in Canada clears the result of its negotiations with the government over the relocation of the plant.
Currently, Agrium Egypt’s Managing Director Greg McGlown is in Canada to relay the results of the negotiations with the Egyptian government and decide the future of their involvement.
Last Tuesday, the government canceled the construction of the plant in Damietta due to fierce local opposition.
Until McGlown’s return, the company has refused to comment on the decision taken by Cabinet to relocate the plant and the purchase of Agrium’s share (60 percent) by the state owned Misr Oil Processing Company.
However, Al-Dostour newspaper reported Thursday that Agrium Egypt refused to accept the cabinet’s decision to relocate the plant. It seems though that the company is waiting for word from Canada before making an announcement.
Prime Minister Ahmed Nazif has been conducting negotiations with the company to find a solution that will satisfy all sides now that the decision to relocate the plant has been reached. Comments from the Canadian company seem to indicate that they have scrapped the project.
Residents conducted a wide-scale campaign to oppose the construction of the plant due to environmental concerns as well as the ruination of what is considered a tourist area.
“This [the closure] is a victory for the people of Damietta against the factory and a victory of their struggle through peaceful means. It is also an admission by the government that this area is a tourist area, not an area for industry,
Nasser El Emary, head of the popular committee in opposition to the plant, told Daily News Egypt.
“When the government chose this location, they put the interests of Agrium ahead of the interests of the people of Damietta, and they didn’t carry out the necessary environmental studies. The people of Damietta were right to stand against this. Not against investment, but against putting things in the wrong place, he added.
