Israel's textile and fashion industry has been one of the worst-hit industries by the recession. Offis Textile Ltd. (TASE:OFIS) president Ramzi Gabbay, who serves as chairman of the Textile and Fashion Industries Association of the Manufacturers Association of Israel, said that the industry was in the throes of its worst downturn in the history of the country.
The textiles and fashion industry laid off 1,600 employees in 2008, 9.5% of its workforce, and it now employs 16,200 people. Six plants were closed last year: the Polgat factory in Kiryat Gat, which employed 300 people; the Polgat Jeans plant, also in Kiryat Gat, which employed 70 people; the Delta Galil Industries Ltd. (Pink Sheet: DELTY; TASE: DELT) elastic band plant in the Druze town of Isfiya; Ekstein Knitting Ltd.; and two other small firms
Layoffs were made by Gibor Sport Active Wear Ltd. which fired 450 employees; Tefron Ltd. (Bulletin Board: TFRFF; TASE:TFR), which fired 300 employees; Arad Towels Ltd. - 165 employees; Molitan Ltd., Delta Galil, Bagir Ltd., and and Gilon Sportswear Ltd. - 50 employees each; and Nilit Ltd. unit Hanit Fibers Ltd. - 23 employees.
Gabbay added that textiles and fashion sales fell by a nominal 12% in 2008, compared with 2007, to NIS 8.4 billion, and that domestic textiles sales fell 13% to NIS 4.7 billion. The only good news was a 2.5% increase in dollar terms in exports to $1.04 billion. Israel exports textiles and fashion products to 114 countries.
Published by Globes [online], Israel business news - www.globes-online.com - on March 5, 2009
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