Chinese firm again extends schedule for $1.2 bln factory

HongKong – China Group Lee & Man Paper Manufacturing has - for the fourth time - asked for a deadline extension to the construction of its US$1.2 billion paper complex in southern Vietnam’s Hau Giang province.

Nguyen Thanh Nhon, vice-president of the People’s Committee of Hau Giang, confirmed that the 100% foreign-owned company will extend the official operation date of its under-construction factory towards the end of 2014, one year later than previously planned.

This is the fourth time since 2007 that Lee & Man has asked for extension to the construction schedule due to lack of financial resources. The total capital in the project is estimated at US$1.2 billion.

In 2011, Lee & Man Vietnam’s director, Cheng Ching Kay, announced that the factory would go into commercial production in October this year.

However, by July 25, the investor had only finished 83 percent of site clearance while other major works remained under construction.

Lee & Man, one of the world's premier paper manufacturers, obtained an investment license in 2007 and broke ground for a paper mill in the province. It was licensed to operate in Hau Giang for 50 years.