Kibbutz near Gaza mulls more German production

Terror takes its toll as Kibbutz Gevim's Poleg looks to add a new line, but not in Israel.

Sources inform ''Globes'' that Kibbutz Gevim is considering adding a new production line for its company Poleg Plastic Industries (1998) Ltd. in Germany rather than in Israel. Kibbutz Gevim is located along the border of the Gaza Strip, near Sderot. The kibbutz expects to invest up to NIS 30 million in the production line, which will boost output by 50% and add 30 employees.

Poleg Plastic Industries has two plants, one on the kibbutz and the other in Leipzig, Germany. The company is jointly owned in equal shares by Kibbutz Gevim and Poli-Film Group, a private German company. The Israeli factory expects a turnover of NIS 120 million this year and the German factory a turnover of NIS 100 million. The new production line will be at one of the two factories.

The security situation at Kibbutz Gevim combined with the shekel's appreciation against the dollar and euro and the cut in the Law for the Encouragement of Capital Investment has led Poleg Plastic Industries' management to consider setting up the new production line in Germany.

Poleg Plastic Industries general manager Zvi Kochavi said, "Most of the advantages in establishing factories in Israel have vanished in recent years. We in an area constantly hit by kassam rockets, and it's hard to find local workers or persuade outside workers to come to the kibbutz factory, and if we can persuade them, there's an extra cost."

Poleg Plastic Industries has 60 employees at the kibbutz. It manufactures multi-layer plastic films for the temporary protection of appliances, railway station roofs, new machinery from the production line, etc.

Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2008

© Copyright of Globes Publisher Itonut (1983) Ltd. 2008

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