Egypt's Sewedy Electric delays Libya project

Reuters, Sunday 27 Feb 2011

Leading cable producer postpones plans for Tripoli factory

Egyptian group El Sewedy Electric said on Sunday that the strife in Libya had forced it to postpone a US$65 million cable manufacturing plant it planned to build in Tripoli.

Sewedy, the Arab world's biggest listed producer of cables used in power transmission and telecoms, was negotiating to buy land for the project when the protests began.

The plant had been due to come on stream by the end of 2011 or beginning of 2012 but is now postponed indefinitely, the company said.

The popular uprising to end Libyan Leader Muammar Gaddafi's 40-year rule has entered its 10th day.

"We postponed our plans in Libya due to lack of security in the country. We were lucky because we have not started any significant operations there yet," said Ahmed Homossani, Sewedy's investor relations director.

The firm has plants in countries from Egypt to Ethiopia, Nigeria, Saudi Arabia, Algeria and Zambia.

It exports to the Middle East and north Africa, Spain, Portugal, eastern Europe and Brazil, with African countries taking 30 per cent of its exports.

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