2006 was the best year in a decade for Israel’s chemical and pharmaceutical sector: sales rose 12.6% to $17.4 billion a quarter of total industrial sales. Chemical and pharmaceutical exports rose 15.7% to $8.8 billion, 29% of total industrial exports, excluding diamonds.
For the sake of comparison, electronics exports accounted for 33% of total industrial exports. The chemical and pharmaceutical sector was in second place.
Manufacturers Association Chemicals, Pharmaceuticals, and Environmental Society chairman Joseph Barnea said 25 Israeli chemical and pharmaceutical companies operate internationally. One reason for the trend to acquire foreign companies and set up production lines overseas is the problems facing the industry in Israel.
He predicts that chemical and pharmaceutical sales, of which oil accounts for 4%, will reach $19.5 billion in 2007, 12% more than in 2006. He also predicts that chemical and pharmaceutical exports will grow by 15% to $10 billion, “unless something unexpected happens.”
Published by Globes [online], Israel business news - www.globes.co.il - on January 4, 2007
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