Israeli fabrics company Avgol Nonwoven Industries Ltd. (TASE:AVGL) is leaving its plant in Barkan in the West Bank and shifting production to India. Avgol said, "Shifting the production line is part of the company's plans to close the Barkan production line and when theline is closed all activities at the Barkan site will end."
Avgol began operations at Barkan in 1999 where it has an annual production capacity of 10,000 tons of a range of hygiene and medical products including wet wipes and disposable diapers.
Avgol says it will invest $17 million in moving the production line to India, where it will be located in a different place to its existing manufacturing plant in India. Avgol expects the new Indian plant to be operating by the first quarter of 2022.
Avgol will concentrate all its remaining operations in Israel in its Dimona plant in the Negev. The company says it is closing down the Barkan plant because, "the production lines are old, a fall in demand, and the lack of profitability on the products manufactured."
However, Avgol is following in the footsteps of other Israeli companies like SodaStream, Ahava and Barkan wines, who have closed down factories over the green line in the West Bank.
Published by Globes, Israel business news - en.globes.co.il - on October 20, 2020
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