Manufacturers estimate NIS 120m war damage

The Manufacturers Association estimate covers 430 enterprises located within 40 kilometers of the border with the Gaza Strip.

The Manufacturers Association of Israel today estimated that damage to enterprises in the south since the start of Operation Pillar of Cloud at NIS 120 million. The estimate covers 430 enterprises located within 40 kilometers of the border with the Gaza Strip.

The Manufacturers Association found that 80% of employees at these enterprises have turned up for work, but that some enterprises have been affected by the call up of IDF reservists, and that many employees are not coming in for night shifts.

"The cumulative to industrial activity in the south is growing daily," said Manufacturers Association president Amir Hayek. "Manufacturers are trying to continue business as usual despite the difficult conditions, but many manufacturers, especially those close to the Gaza border, have had to close their gates because of the fighting."

Plastics components manufacturer Kafrit Industries Ltd. (TASE:KAFR), located in Kfar Aza, has been hit twice within a day by rockets fired from Gaza. The company notified the TASE today that its production lines were severely damaged, forcing them to be shut down. The company has 150 employees at Kfar Aza. It also has three plants in Canada, China, and Germany. Its exports from Israel total NIS 700 million a year.

BDO Ziv Haft estimates that the fighting in the south will cost kibbutz industries 15% of their revenue, because of reduced operations at plants in the south and fears of cancelled export orders.

Published by Globes [online], Israel business news - www.globes-online.com - on November 19, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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