14,

/ M INOS®

Elco Factories
In Asia

Jerusalem (JPFS) — Elco Industries
Ltd. is scouting southeast Asia to buy
existing plants or to enter into joint
ventures as part of its aim to find
alternative markets and especially to
expand in Asia, Elco Group CEO Uri
Kviatek said.
He said it is more likely that the
company would buy an existing •
plant.
Officials from the company have
visited Thailand and South Korea in
search of such opportunities.
Thailand in particular has been iden-
tified by the company as having great
market potential. According to
Kviatek, Thailand now has only dou-
ble the power capability of Israel but
its population is tenfold, leaving great
opportunity for expansion.
Elco Industries manufactures prod-
ucts for electrical infrastructure,
including power and distribution
transformers for substations and
industry, mobile substations and a
range of power electronic compo-
nents.

Inflation Decline
In Israel

Jerusalem (JPFS) — The public sees
the current decline in inflation as a
permanent one, according to a report
economists of Israel Discount Bank
just published.
The paper said that unlike the
sharp decrease in inflation in 1992
and 1995, this time the public
believes the fall is permanent. The
economists based this conclusion on
inflation expectations for the next
two or three years, as it is reflected by
the yield difference between linked
and unlinked bonds, which is lower
than 5 percent.
Discount's experts estimated that
the factors which led to lower infla-
tion during recent months will con-
tinue to exist in coming years.
The economic activity is expected
to continue to decline during the
next few months if investments in the
economy decrease, demand for Israeli
products from South Asian countries
falls, investments in infrastructure
halt and the Bank of Israel continues
its strict monetary policy.

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