With the beginning of the Israeli Defense Force operations against Hamas in Gaza, the IDF Home Front Command has ordered businesses in communities surrounding Gaza to remain closed. This is the first time this step has been taken in eight years of Kassam rocket attacks from Gaza.
The order applies to communities within a 4.5 kilometer range of Gaza. As a result, nearly all factories and workplaces in the hard-hit southern city of Sderot and towns surrounding Gaza will not open, except for vital sites such as food stores.
Within the 4.5 kilometer radius, which includes the industrial zones of Ashkelon and Netivot, plants can operate as usual if there is a protected location on site.
Agricultural machinery maker Lachish Industries Ltd. CEO Gershon Goldenberg told "Globes", "The implication from our perspective is very bad, especially since this is the end of the year and customers are waiting for equipment which they ordered from us".
Lachish Industries is located in Sderot.
Goldenberg, who heard about the order from "Globes", said he was surprised, and that he would have to contact employees who had reserved places on the company's organized transportation to cancel them.
The Manufacturers Association of Israel estimated that since the first Kassam hit, industry in the southern region of Israel has lost NIS 100 million. The figure includes not only damage from direct hits, but also indirect effects such as employees leaving, and customer worries which led to drops in orders.
Published by Globes [online], Israel business news - www.globes-online.com - on December 28, 2008
© Copyright of Globes Publisher Itonut (1983) Ltd. 2008