Prime Minister Ehud Barak promised the managers of Vishay that no constraints would be placed on the State's aid for the planned expansion of the company's plants in Israel. Vishay is planning to invest $500 million in expanding its plants in Beer Sheva, Dimona and Migdal Ha'Emek, and is expecting the move to create 4,000 new jobs.
Vishay International chairman Felix Zandman and Vishay Israel general manager Mark Zandman met with Barak on Friday. The meeting was also attended by Prime Minister's Office director general Yossi Kucik and Ministry of Industry and Trade director general Dr. Reuven Horesh.
Vishay presented the Investment Promotion Center (IPC) with a work plan for the next five years, in the course of which it plans to complete the expansion. Vishay did not ask for extraordinary State aid, but for the aid provided for by law - 20% of the investment cost, amounting to $100 million.
The request is being examined by the joint IPC-Ministry of Finance committee, led by IPC director Haviva Cohen and Ministry of Finacne budget director David Milgrom. The committee is also looking into Tower Semiconductor and Intel's aid requests.
Visha's senior VP for business development told "Globes" that, without State aid, the expansion of the plants was in considerable doubt.
Published by Israel's Business Arena on 27 August, 2000