Sources inform “Globes” that Israel Postal Authority chairman and director-general Yossi Shelli has initiated a plan to set up an independent printer, or to merge with an existing printer, at an investment of $20-25 million. The press will compete directly against Beeri Printing, which is working for the new Postal Authority venture. The measure will probably affect the entire Israeli publishing industry and the competition for enterprise mailing business.
The Postal Authority's intention is to ready itself for the opening of the market to competition, and to save the mark-up it pays to external printers. The Postal Authority pays at least an estimated NIS 10 million a year to external printers for its internal needs alone.
The Postal Authority also intends to compete against major companies that handle mailing to their own customers. Shelli recently asked Investment Promotion Center director-general Shmuel Mordechai to carry out preliminary studies for a possible $5 million state grant for setting up an independent printer by the Postal Authority.
Mordechai told "Globes" that he supported the initiative, which would now have to go through the legally stipulated approval process.
Shelli confirmed the report. He added, "We'll contact large companies, such as Pele-Phone, Cellcom, the banks and Israel Electric Corporation, which spend millions of dollars a year in mailing, marketing, and advertising to customers. We'll offer them a comprehensive package and competitive price for mailing their bills. The mailers price is currently NIS 0.15-0.18, plus a NIS 0.90 delivery cost. I can offer customers a package at NIS 1-1.05, which is a preliminary estimate, which we can later lower to NIS 0.70.
The Hebrew daily “Yediot Ahronot” has reportedly applied to the Investment Center for a grant for a new press to be built in the Ahihud industrial zone. This application is also for several million dollars, but the Investment Center has not yet begun discussing it. The application's grounds are new jobs.
Published by Globes [online] - www.globes.co.il - on January 6, 2004