BASF & Kibbutz Industries Association, signed strategic agreement

The German multinational chemicals and plastics concern BASF and the Kibbutz Industries Association signed last week a cooperation agreement.
 
Under the newly signed agreement at least ten Kibbutz Industries Association companies will move production to BASF plants in Germany.
 
BASF is regarded the world leading chemicals and plastics concern. The company employs some 90,000 workers worldwide and has an annual turnover of $42 billions. Mr.Amos Shalev export manager of the Kibbutz Industries Association said that under the agreement, BASF would be a strategic partner for the establishment of production lines for chemicals and plastics products at BASF plants in Europe.
 
Shalev added that BASF's European production facilities are closer to the Israeli companies' markets in Eastern Europe, including Poland and the Czech Republic. The cooperation agreement also mentions possible of future capital investments by BASF in the productions lines that the Kibbutz Industries Association will set up in Germany, and in cooperation in the manufacturing, logistics and marketing in Israel and in BASF's overseas subsidiaries.
 
Mr. Amos Rabin director general of the kibbutz industries Association added that due to the ports strike, many kibbutz factories were harmed. The strike disrupted deliveries to many foreign customers. As a result large number of factories were considering the setting up of additional productions lines in Europe .
 
Some of these production lines will, according to Rabin, replace manufacturing in Israel, and some will supplement Israeli production by making large plastics products that are very costly to transport, rending Israeli manufacturing for export less competitive.
 
Mr. Dov Ben-Meir BASF's representative in Israel said that the agreement had created interest among many German businessmen who were interested in investing in Kibbutz Industries.