Sources inform ''Globes'' that Rolls-Royce (LSE:RR) and the Wertheimer group recently laid off 20 of the 100 employees at their Techjet subsidiary. Techjet was founded two years ago in the Tefen industrial park in the Galilee. It was Rolls-Royce's first non-financial investment in Israel.
Techject manufactures jet engine blades, mostly for export. Sources in the company's management said, "The measures were carried out over two months, to adjust the workforce to global market conditions. The plant's products are directed to the global market, which is going through a significant recession, causing a fall in orders."
The jointly owned plant was ceremoniously opened two years ago. The owners stated they had invested $50 million in the venture, and planned to triple it. They announced the plant would have a staff of 120.
Then-British foreign minister Robin Cook was involved in promoting the venture, as Rolls-Royce is a British company. At the time, it was reported that Nahariya-based Blades Technology had shares in the venture on behalf of the Wertheimer group.
Techjet's management said yesterday that there was no connection between the company's activities and those of Iscar, controlled by Stef and Eitan Wertheimer. Last week, Iscar reported it posted a $250 million net profit in 2001, and is one of the most profitable companies in Israel.
Published by Israel's Business Arena on 18 March 2002