THE 1997 CADILLAC DEVILLE...
AUTOMOTIVE SPA ON WHEELS
Kitan Fires
Factory Workers
Jerusalem (JPFS) — Workers at
the Kitan textile factory in Beit
She'an are preparing for a long
and bitter fight for their jobs, fol-
lowing an announcement by
management that it intends to
close most of the plant.
Pinni Kabalo, head of the local
labor council, said the decision
to sack 110 of the factory's 180
employees is a catastrophe for the
workers and Beit She'an.
Most of the facility will be shut
down within the next few days,
including firing workers, trans-
ferring equipment and loss of
sales.
The Beit She'an plant will con-
tinue to operate its Levis Laun-
dry and finished products
warehouse.
Employees described the com-
pany's decision as a "bolt from the
blue." The work is to be trans-
ferred to Kitan's other plant in
Dimona. The company has sug-
gested that 25 of the current stall'
move to Dimona, but the rest will
be dismissed.
A statement issued by Kitan
said it intends to retain two other
departments at the Beit She'an
factory.
The company has blamed gov-
ernment policies, especially its
economic program — which has
kept the shekel high against the
dollar, resulting in much lower
profits for the company's exports.
The decision was taken to cen-
tralize production at Kitan's fac-
tories in Dimona and Upper
Nazareth and close the finishing
department at Beit She'an, the
company said.
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Jerusalem (JPFS) — Canada's
International Trade Minister Art
Eggleton has introduced a bill to
the Canadian parliament to im-
plement a free-trade agreement
with Israel.
If enacted, the deal will remove
tariffs on industrial products of
Canadian or Israeli origin. The
only exceptions to this will be
women's swimwear at Canada's
request and certain cotton fab-
rics at Israel's. Tariffs on these
will be phased out over two-and-
a-half years.
Duty-free access or low duties
will be applied to a variety of agri-
cultural and fisheries products
— excluding dairy, poultry and
egg products. Talks will be held
within two years to further lib-
eralize agricultural trade.
Ministerial agreement was
reached during Industry and
Trade Minister Natan Sharan-
sky's visit to Canada during the
summer.
Backers hope the necessary
legislation will be completed in
the next few weeks to allow the
deal to run from January 1, 1997.
Canada intends extending the
agreement to the PA areas, and
hopes talks will start in the near
future.
Elite Sells
Coffee Factories
Jerusalem — Elite Industries in-
tends to enter negotiations with
a European food company in an
attempt to sell its coffee factories
in Spain, Belgium, and France,
the company said in a Tel Aviv
Stock Exchange announcement.
The European company has
offered to purchase all three of
Elite's no-brand name coffee fac-
tories in these countries. Elite re-
fused to provide additional details
of the discussions.
The factories considered for
sale are the Cafes Excela coffee
plant in France, which supplies
private-label coffee there, and the
Fort coffee plant in Belgium,
which manufactures and sells
roasted and ground coffee under
private labels for retail customers
in the Netherlands, Belgium, and
Britain.
Finally, the company is con-
sidering the sale of the Union
Tostadora coffee plant in Spain,
which is considered the largest
private-label coffee manufactur-
er in Spain. It supplies premium
coffees to the country's leading
retailers.
Elite's coffee factories have suf-
fered greatly over the last few
years, primarily due to their in-
ability to control the skyrocket-
ing price of raw materials and
sale prices, which are determined
by the market's larger producers.
During the last few months,
Elite Chairman David Feder-
man's most urgent priority has
been to reduce Elite's losses in
Western Europe. For this pur-
pose, Elite hired international (-
consulting firm Arthur D. Little,
which is expected to present its
recommendations to manage-
ment within the next few weeks.
Already, Elite has said it
would follow Arthur D. Little's
recommendation to close the
Union Coffee plant in Berlin.
Union, the main source of Elite's
losses in Western Europe, pro-
duces private-label products.
Israelis
Travel Abroad
Jerusalem — Almost 700,000 Is-
raelis made trips abroad during
July and August, the Central Bu-
reau of Statistics reported. That
represents a 19 percent increase
on the same period last year. Of
those leaving the country, 78 per-
cent traveled by air, a 15 percent
increase over the equivalent fig-
ure for 1995.