Wisynco Group To Take a JA$1B Hit in Revenue and JA$74M in Net Income From Proposed Ban On Styrofoam
Wisynco Group Limited (WISYNCO) is reporting that it will cost the company around JA$1B in revenue, representing 4% of the company’s revenue and approximately JA$74M in net income, representing 3% of the company’s net income, arising from the proposed ban on Styrofoam for local manufacturers, set to take effect on January 1, 2020.
This based on Wisynco Group’s Statement of Comprehensive Income for 2018.
Regarding the ban on plastic straws, which is proposed to take effect on January 1st, 2019, the company is reporting that this product category represents less than 1/10th of 1% of the Company’s revenue and so the ban will therefore have no impact.
The Government of Jamaica recently announced its intention to ban plastic bags, plastic straws and Styrofoam, pending final legislative provisions. The Wisynco group does not manufacture or imports plastic bags.
Chairman of Wisynco, William Mahfood, is reported as saying that his company is in support of the Government on the matter of recycling and removal of damaging materials to the environment, but insisted that a suggested five-year transition period would be a workable approach.
Mahfood, in a statement responding to the Government’s ban said that he is concerned that the time, energy and resources invested into the recommendations made by a private/public sector working group, approved by Cabinet, have been sidelined based on the speedy announcement to introduce the ban in January of 2019.
Mahfood, whose company is a major producer of plastic and styrofoam products, questioned why his suggested period of five years for local businesses to transition from the use of such products has been ignored by Government.