There is a chance that the Chinese investment of Ropczyce, the fire-proof articles producer, ends without bigger problems. PLN 30.5m (EUR 9.5m) of reserves have been put aside for the failed project. Decision to withdraw from it has already been made. Now, it has to be decided, how to do it.
“We may choose arbitration but it lasts several years in China, or find a settlement. I’m for the latter solution”, Jozef Siwiec, Ropczyce CEO said.
Salans lawyer’s office is working over the case.
“Our partner wants to buy our stake”, Jozef Siwiec added.
Ropczyce spent USD 10m for the Chinese project which was not launched because of formal and tax reasons. Technology from Ropczyce is evaluated at USD 6m. The remaining USD 4m was spent to buy machines and equipment.
“We do our best not to lose on this project”, Jozef Siwiec assured.
Ropczyce is not totally giving up the Chinese market. The company has a sales office there and delivers materials to the country. This business generates a substantial part of the group’s sales. Cash raised in the withdrawal may be invested in China again. Ropczyce is considering whether to launch its own production but without any partner for a change.
(PLN 1 = EUR 0.310)