Hadera Paper closes Karmiel factory

This latest streamlining move will cost 40 jobs and is supposed to save NIS 7 million annually.

Against a backdrop of the losses that Hadera Paper Ltd. (TASE: AIP; Pink Sheets: AIP) has reported for the past two years, streamling measures at the company, which belongs to the Clal Industries group, continue. Today, Hadera Paper announced the closure of the factory of subsidiary Carmel Containers in Karmiel, and the transfer of its activity to Caesarea, Carmel Containers' main base. The subsidiary produces and sells packaging and cardboard products, mainly for customers in industry and agriculture.

Hadera Paper estimates that transferring the activity will save it about NIS 7 million a year, and that it will not materially affect the subsidiary's sales. 49 people are employed at the Karmiel factory. 40 of the will be dismissed, with enhanced severance pay. The cost of dismissing the employees will be NIS 5.5 million, and Hadera Paper estimates that it will incur additional one-time expenses of up to NIS 1 million as a result of the move.

Last May, Hadera Paper announced that it was laying off 120 of its 3,200 workers, and estimated that this would lead to an annual saving of some NIS 20 million.

Control of parent company Clal Industries passed in July 2012 from Nochi Dankner's IDB Holding Corp. Ltd. (TASE:IDBH) to Len Blavatnik, for NIS 1.27 billion. Hadera Paper has several subsidiaries in paper, packaging, and recycling, and it also holds Hogla-Kimberly, which sells hygiene products. The CEO is Ofer Bloch, and the chairman is Avi Fischer, who is also chairman and CEO of Clal Industries.

Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2013

© Copyright of Globes Publisher Itonut (1983) Ltd. 2013

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018