The Egyptian uprising has hit a Vancouver company’s bottom line.
On Monday night, Methanex Corp. (TSX:MX), the world’s largest producer of methanol, said it had temporarily closed its office in Cairo and limited the number of employees at its Damietta plant.
The news comes just weeks after the 1.3-million-tonne-per-year plant produced its first methanol.
“Our first priority is the safety and security of all our employees,” Methanex president and CEO Bruce Aitken said in a statement. “As a result of the civil unrest in Egypt, the decision has been taken to minimize operating activities there.”
Thousands of Egyptians have gathered in Cairo in recent days calling for an end to President Hosni Mubarak’s 30-year rule.
On Tuesday, media sources reported that the Egyptian army has agreed that it won’t take up arms against the protestors.
Methanex, which employs some 900 people at plants around the world, has evacuated international staff and their families from Egypt.
“Commissioning activities on the plant, which is currently shutdown, have been curtailed,” Aitken said. “The Damietta site is currently being staffed at minimal levels commensurate with essential activities and for the security and integrity of the facility. Over the next few days we will be developing plans to re-initiate the commissioning and start up of the plant as and when conditions allow.”
Damietta is located on the Mediterranean Sea and is a joint venture between Methanex, which owns 60% of the plant, and Egyptian government partners.
Despite the shutdown, Methanex’s stock was up 4.3% to $28.39 in midday trades Tuesday.