Sources inform ''Globes'' that Degania Silicone Ltd., owned by Kibbutz Degania B, is expanding its factory in India, not the factory in Israel. The company set up its Indian plant, Degania Medical Devices Pvt. Ltd., four years ago. The company's Israeli factory at the kibbutz is considered one the biggest employers in the Kinneret area, with 320 employees, after laying off 80 employees a year ago.
Degania Silicone will complete the expansion of its Indian plant next month, after adding production lines at an investment of $1.5 million. The plant is expected to hire 200 people over the coming year.
Degania Silicone managing director Amos Nahir confirmed the report. "I'm forced to do this against my will and in violation of my Zionism. We're expanding production, but the Indians are profiting and even undercutting us. We mainly produce for export to the US and European markets, and the shekel's appreciation has hurt us badly."
Degania Silicone makes high quality silicone medical and technical products. In addition to its two factories, the company has sales and marketing offices in Rhode Island and in Germany. Kibbutz Degania was the first kibbutz founded in Israel in 1909. The parents of Moshe Dayan were among its founders.
Published by Globes [online], Israel business news - www.globes-online.com - on November 9, 2008
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