Sources inform ''Globes'' that Vishay Intertechnology (NYSE:VSH) subsidiary Vishay Intertechnology (Israel) will invest $30 million to expand two production lines at its plants in Beersheva and Dimona. These plants employ 2,300 people. Vishay Intertechnology’s chairman and CEO is Dr. Felix Zandman.
Vishay plans to move overseas production to these factories, thereby expanding Vishay Israel’s output. Vishay Israel is currently responsible for $500 million of Vishay’s total of $2.3 billion in sales. Vishay Israel will add 200-300 people to its current workforce of 4,300.
Vishay is also considering setting up a factory in Jerusalem, if the production capacity of its Beersheva and Dimona factories is insufficient to meet demand.
Vishay declined to comment on the report.
“Globes” first reported last week that Vishay notified the Investment Promotion Center that it would suspend its planned NIS 1.25 billion investment in Israel. The company obtained NIS 250 million in grants in 2000. The investment was suspended after 39% was implemented, leaving NIS 770 million unused. However, because the company obtained the grants on the basis of progress of actual investment, it has not yet received grants for the unused part of the investment, and will probably not have to refund the money.
Government sources nevertheless say that, although Vishay claims it suspended its investment because of the global high-tech crisis in 2000, the fact that it only recently formally announced the suspension is liable to be held against the company when it asks for new investment aid.
Very senior sources close Vishay’s management said in response that the company had been in informal contact with the Investment Center in recent years, and told the Investment Center that it was not meeting performance rates, and that it might only carry out part of its investment.
Published by Globes [online], Israel business news - www.globes.co.il - on January 31, 2006