Phoenicia threatens to close Israeli plants

Sources inform "Globes" that Phoenicia America-Israel (Flat Glass) is considering closing down its plants in Israel and moving its activity overseas, following the discontinuation of olefin-free industrial gas production by Oil Refineries.

Phoenicia president Oded Tyrah recently contacted Pazgas CEO Pinchas Biderman, following Pazgas’s announcement that it would halt its production of olefin-free gas, starting in October 2005. As reported exclusively in "Globes", Oil Refineries is expected to cut its gas production from October. Oil Refineries is obligated to reduce the olefin content of its gas to 30%, which will reduce its production capacity, and apparently lead the company to completely halt its production of olefin-free gas. This is expected to raise industrial gas prices by at least 1.5%. Phoenicia has used olefin-free gas in its manufacturing process for years.

Tyrah said that without an environment that supports suppliers’ obligation to their customers, it was doubtful whether enterprises, including Phoenicia, would have any reason to continue their activity in Israel.

Tyrah told "Globes" that the olefin-free gas produced by Oil Refineries was critical for Phoenicia’s activity, because Phoenicia’s plant used the gas to produce nitrogen and hydrogen, which played a key role in the manufacturing process.

Phoenicia reportedly is also planning to invest $35 million in a heater for melting glass in its plant. Disruption of olefin-free gas supplies threatens this investment.

Phoenicia is demanding that Pazgas, an exclusive supplier, with which Phoenicia has had commercial relations for decades, find ways to continue regular supply of this energy resource at the current prices for at least the next four years, until a decision is made about the future of Phoenicia’s plant in Israel.

600450 Phoenicia threatens to close Israeli plants

See more news about:

Others also read

Emirates Glass, a Dubai Investment subsidiary, has won a major contract to supply 140,000 square meters of its premium glass to the prestigious development on the Palm Jumeirah, reaffirming its already established reputation as the single most prominent company in the entire regional glass industry.The deal was announced during the company's participation in the prestigious Big 5 show, the largest annual venue for the entire Middle-East glass contracting industry.
Isra Vision Systems AG supplier of machine vision systems, has successfully improved its market position in display glass inspection with a major order totalling 1.8 Mio Euro.
Packagers such as the UK's Rexam and private equity firms are set to vie for pump-sprayer business Calmar, which France's Saint-Gobain (SGOB.
The National Lime & Stone Co. will discontinue production of calcined lime early next month at its Carey plant, the company CEO announced Thursday.
Jain Scientific Glass Works, manufacturers of glassware for laboratories, is importing glass as raw material from China, which was much cheaper than the local product and abundantly available.
Japan 1 2 1 S. Korea 6 6 3 Southern Taiwan 4 2 0 Central Taiwan 0 4 2 AGC Japan 0 1 1 Taiwan (Yunlin) 1 1 1 Source: PIDA (Photonic Industry & Technology Development Association) Taiwan TFT-LCD Panel Makers Happy to See Substrate-price Falls in 2006 Taipei, Dec. 27, 2005 (CENS)--Both of the world's top-two glass-substrate makers are actively expanding their production capacity in Taiwan, which is expected to cut substrate transportation time and cost for local thin film transistor-liquid crystal display (TFT-LCD) panel makers and boost production efficiency, according to Michael Wang, project manager and senior analyst of Taiwan's PIDA (Photonic Industry & Technology Development Association).According to Wang, Asahi Glass Co. (AGC) of Japan has solved problems in lowering the defect-free rate for the production of fifth- and sixth-generation (5G, 6G) glass substrates, and is expected to tap the market with products with higher price competitiveness in 2006 to grab more market share in the 6G substrate businessIn addition, Wang added, the aggressive capacity added by both Corning of the U.S., the world's No. 1 substrate supplier, and AGC, the No. 2, will lead to price drops for glass substrates and will especially benefit TV panel makers such as AU Optronics Corp. (AUO) and Chi Mei Optoelectronics Corp. (CMO) in TaiwanCurrently, Wang pointed out, a 6G substrate is priced at about 27,000 to 30,000 Japanese yen, about 1,000 to 2,000 yen lower than in the third quarter of 2005.

Add new comment