bpn sustainability award, page-5

Hi Keeting,

AAMC (owned by PPY) has won a government grant to build a manufacturing facility in SA. They will get 1.5 million to do this, but they also must put 1.5 million into the project. It seems they will build the machines in SA (apparently in Thebarton) and then ship them to Egypt. One down side of the government grant is that the company has to employ 40 people in the project in SA. For a company that has almost no revenue, 40 people seems enormous.

I am also worried about Egypt. I have been burnt before with Australian companies who invest overseas and lose big-time. If PPY can find an unrelated group to buy our machines and set up a factory in Egypt, then great. Otherwise, who knows what kind of trouble the company can get into over there. At least with a factory here in Australia we all know the score and if there is a problem they should be able to find it and fix it. From all accounts Egypt is, shall we say, a complex environment in which to do business.