Makhteshim, of the Makhteshim-Agan Industries group, has signed a strategic cooperation agreement with French company Cray Valley. The business cooperation is aimed at manufacture and marketing of plastic and polyester products on the local market and in neighboring countries.
Cray Valley is a subsidiary of French multinational Total Fina Elf. Under the agreement, Makhteshim will market a range of polyester products, which will be specially manufactured for it at Cray Valley plants. In addition, Makhteshim plans to penetrate the Israeli market with a range of other products out of Cray Valley's wide product basket.
Makhteshim management said, "The strategic agreement with the French company constitutes a step in the Middle East door, and makes Makhteshim a key distributor in the region, including neighboring Arab countries."
Cray Valley is the world's second largest polyester manufacturer. The company has many manufacturing plants worldwide, but most of its activities are concentrated in Europe and the US.
The French concern's annual sales turnover is $100 billion.
"Following the agreement, a 25% increase is expected in Makhteshim's polyester division in the next two years. Makhteshim's long term plans are to stop manufacturing polyester resin, which is used in the chemical industry and the building sector, and become a distributor and marketer for Cray Valley."
Published by Israel's Business Arena on 5 April, 2000