"If the ports strike continues, it will be very hard for us to justify new investments in Israel to our shareholders," Stanley Works Europe president Arnaud de Weert told "Globes".
Deweert and other Stanley Works Europe executives are visiting ZAG, of which Stanley Works (NYSE:SWK) owns 90%. Stanley Works has $3 billion in turnover and 20 factories worldwide.
Deweert said, "One of the reasons we invested in Israel was reliability in meeting timetables and low costs. But costs will soar if we have to fly cargoes out or send ships to collect cargoes from other ports in the region. Ultimately, we're committed to the bottom line in our financial reports. The ports strike is a hassle that should never have happened."
Deweert added that Stanley Works was continuing its investment in developing new products in Israel.
ZAG chairman and CEO and GE Polymer Logistics chairman Zvi Yemini said the company had 300 containers, worth $6 million, stuck at the ports. He said, "Some of the goods are now be transferred to air cargo, at a cost of tens of thousands of dollars, which will burden the company. Instead of investing in company development, we have to cover the cost of the strike." He added that if the ports strike continues, within a week ZAG will have to send 2,000 employees on forced vacation, including those directly employed by the company and those indirectly employed by subcontractors.
Published by Globes [online] - www.globes.co.il - on July 22, 2004