Kibbutz Industries' - overseas activity in 2004 up 40%

Kibbutz Industries Association general manager Mr. Amos Rabin said last week that a 40% increase in kibbutz industries' overseas activity was registered in 2004. Mr. Amos Rabin disclosed that in 2004 total activity reached $620 million compared to $440 in 2003.
 
The Kibbutz Industries Association chief economist Mrs. Shlomit Arbel said that the figures covered sales by 40 kibbutz enterprises that own and run foreign subsidiaries or production lines in foreign countries.
 
In a press release Rabin added that the setting up of factories and production lines overseas made a welcome contribution to the kibbutz enterprises. According to Rabin it allowed the enterprises to develop additional sources of revenue and to get, geographically, closer to their buyers.
 
Rabin added, however, that the setting up of factories and production lines overseas has negative aspects for the Israeli economy. Rabin elaborated that some of this production capacity could be carried out in Israel, creating new jobs and providing work for subcontractors and service providers.
 
Rabin emphasized that "While the government is cutting aid to industrial enterprises, other countries are interested to have Israeli factories and awarding them very large grants." He added that the port strikes in recent years accelerated this trend.