Nantong, China — Polish PU foam maker Selena is chasing the Chinese and local governments for compensation as it has to move its factory in Nantong because of potential flooding.
The plant, which makes rigid PU foams and other building materials, is in danger of flooding as a result of the Yangtze River area protection programme, according to an official document received by the company.
Selena plans to use the compensation to relocate the factory, which was valued at CNY58.2m ($ 8.9m), according to a filing with the Warsaw Stock Exchange.
The parent company has provided Selena Nantong Building Materials, which operated the plant, with guidelines related to seeking compensation for the assets of the Chinese factory, and also with other damages and costs related to a possible relocation of the plant in Nantong.
The Nantong plant is thought to be Poland's largest manufacturing investment in the Chinese market.
Selena operates a number of production facilities across the world. In addition to the Chinese factory, this include plants in Poland, Spain, Romania, Brazil, Turkey, and South Korea Last year, Selena unveiled a project to open a new production facility in Kazakhstan, where the company's activities are focused on making insulation systems. Under the plan, the new factory should be complete by 2024.
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