Eastman Kodak Company (NYSE: EK) today announced that it will transfer one of its two production lines for advanced preprinting systems from Israel to China. The company believes that the move will result in a reduction in the workforce at its Petah Tikva plant amounting to nearly 200 employees.
150 full time employees - 18% of the total current workforce - will be laid off, along with 50 temporary workers.
Kodak will continue to employ 650 people at the plant.
Kodak Israel co-managing director Avi Waldman said that the production line will be installed at the Kodak factory in Shanghai, which already manufactures the same family of preprinting systems.
Waldman added that the transfer of the production line was unrelated to Kodak Israel's performance, but was part of Kodak's preparations for changes in global markets. "Kodak Israel's employees have for many years demonstrated operational excellence of the highest standard, meeting tough targets and challenges. This measure is aimed at cutting production costs, in order to improve the division's competitiveness and profitability.
"We'll do the best we can, and more, in order to help the workers leaving the company as a result of this measure in finding alternative jobs and providing support and other services at the level of the individual worker."
Published by Globes [online], Israel business news - www.globes-online.com - on November 3, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008