Sources inform ''Globes'' that Haifa Chemicals Ltd. will close its two plants during January 2009 and send the employees on paid leave. The manufacturer of specialty fertilizers, food additives and technical chemicals, has two plants, one at Haifa Bay and the other at Mishor Rotem in the Negev.
The reason for the closure is farmers' difficulty in obtaining credit to buy fertilizer. Farmers are also worried that commodities prices will fall further, which is reducing demand for inputs, including fertilizer.
"Globes" obtained a letter to employees, in which Haifa Chemicals CEO Nadav Shahar states, "The crisis is forcing everyone to stop and decide on their next steps. We and our customers are undergoing the same process, and is reflected by a halt in sales and an increase in inventory. In order to preserve the company's assets, the most important of which is our loyal and skilled personnel, the company's management and employees have decided to take paid leave during January.
"This action is being taken to avoid temporary and permanent reductions, which could hurt some of our employees. I regret that this is the first letter to you, but rapid organization and the right response to the changing market conditions will lead us to success."
Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2008
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