While the Shebeen al-Kom factory is making losses, and Indorama is using this as an excuse to cut back on salaries and incentives, how about the mother company? While the Sheeben factory has reportedly made losses of 69 million Egyptian pounds over the past two years, in August 2008 Indorama commissioned "a brand new state-of-the-art compact yarn spinning plant of 26,000 spindles" in Indonesia, and announced an investment of 4 billion rupees (roughly 400 million Egyptian pounds) in a new manufacturing plant in India. Just a few days ago, it was reported that Indorama is establishing "the world's biggest fertiliser complex within its premises at Eleme, River State [Nigeria] at a cost of $2.5 billion."
حسام الحملاوي on 19 Mar 09Good dig by Per!
even if Indorama is making losses in Shebeen al-Kom, we are clearly not talking about a company on the verge of bancruptcy. And the refusal to pay the workers their full bonuses is not a necessary temporary measure, but part of a long term strategy - employed by most post-privatization companies in Egypt - to turn losses into profits by cutting back salaries.
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