"The continued erosion of export profitability, due to the weakening of the dollar and the euro, will cause NIS 400 million in losses to the chemical industry this year". This was said today by Israel Chemicals general manager and Manufacturers Association chemicals and pharmaceuticals department chairman Akiva Mozes. Mozes called on Governor of the Bank of Israel David Klein and Minister of Finance Avraham Shochat to bring about a quick reduction of the interest rate to announce the preservation of the lower exchange rate fluctuation band policy.
Mozes said that the government and the Bank of Israel should move to improve profitability in chemical industry plants. He warned that if the export profitability of the Israeli chemical industry were harmed, plants would be forced to move overseas. The chemical industry has invested $1.3 billion in acquiring overseas plants and companies.
According to Mozes, erosion of profitability, the frequent port strikes, the ongoing increase in production costs, the high interest rate, and the general economic uncertainty make it difficult for the chemical industry to handle overseas competitors.
Published by Israel's Business Arena on March 20, 2000