Sources inform “Globes” that plastics manufacturer ZAG Industries, owned by US concern Stanley Works, will close down its Migdal Ha’emek plant in the coming months. The plant has 200 employees, 70 of whom are direct employees of ZAG.
ZAG founder, chairman and CEO Zvi Yemini said the closing of the plant was not a result of cutbacks in the company activity, but was part of management’s plan to concentrate all its activity in ZAG’s 15,000 sq.m. Carmiel plant, where the company currently employs 300 workers.
Yemini said, “We’ll employ any worker at the plant willing to move to Carmiel.” ZAG develops and manufactures plastic consumer products for the DIY market. According to Yemini, company sales amount to $120 million a year, most for export.
At the beginning of the year, ZAG signed an MOU to buy Keter Plastic’s DIY product lines, current manufactured in the Keter plant in Carmiel, for NIS 140 million. The deal has not yet been finally closed.
Technoplast Industries (LSE:TNP; TASE:TNP), ZAG’s main subcontractor for plastics work in Israel, announced today the transfer of control from chairman and managing partner Itamar Patishi and Orlite Industries to Kidron Management and Holding, controlled by managing director Michael Susz. The transfer will take place through a merging of activity. Technoplast has a market value of only $2 million after accumulating NIS 70 million in losses since early 2000.
Published by Globes [online] - www.globes.co.il - on June 30, 2003