$70m in Kibbutz Buy-Back Deals 18-7-11

Kibbutz Industrial Enterprises Sell $70 Million of Goods in Reciprocal Procurement Deals

Bina Bar-On, Director General of the Industrial Cooperation Authority (ICA) reported that kibbutz industrial enterprises exported $595 million worth of goods in the last five years, including $70 million in the past year.

These products are in the automotive, railways, plastics, metals, water technologies, building materials, electronics, and electrical industries and others.

Among the overseas companies buying these products were: Ford, General Motors, Volkswagen, Renault, Peugeot, MAN, Mazda, Volvo, Siemens and Navistar.

THE ICA's Director General reported that most kibbutz industries have special difficulty in penetrating new overseas markets.

The reciprocal procurement arrangements open up new markets for Israeli factories, and also result in these enterprises becoming authorized suppliers to large companies overseas, which also creates additional business opportunities.

Following these deals, ICA estimates that 700 jobs in kibbutz industries were either created or maintained, a large part of them in peripheral regions.