Finance Minister Moshe Kahlon and Economy Minister Eli Cohen ("Kulan") visited the Stula metal plant on Wednesday, located in the north of Israel and facing the threat of closing and firing all employees.
As stated in the press release of the party "Kulan", Kakhlon said that a special fund to help crisis enterprises, set up by the Ministry of Finance and the All-Israel Trade Unions Association "Histadrut", will provide the plant with a loan of 11 million shekels.
In addition to Moshe Kahlon and Eli Cohen, the general director of the Ministry of Finance Shai Baabad, the chairman of the Association of Industrialists of Israel Shraga Broch and the head of the Histadrut in the Western Galilee Asher Shmuli participated in the trip to the Stula plant.
In accordance with the arrangements, the fund for assistance to crisis enterprises under the Ministry of Finance will transfer 11 million shekels to the plant, another 5 million will transfer the "Tnufa" fund belonging to the Histadrut, and another 4 million shekels will be transferred to the investor from India.
The decision to create a special fund for lending to enterprises that are threatened with disbanding was taken in the Ministry of Finance back in 2009, but only in 2015, after Moshe Kahlon was appointed Minister of Finance, this decision was carried out.
The creation of the fund was also attended by the leader of the Histadrut Avi Nisankoren and the head of the Israeli Industrialists' Association Shraga Broch. "Stoleta" is already the fifth factory, which will be rescued from the closure due to this aid fund.
Plant "Stula" produces equipment and parts for defense purposes, aircraft industry and for the civilian market. In 2015 the plant faced serious financial difficulties. To help him, his subsidiary company contributed funds, but this was not enough.
The company was on the verge of bankruptcy, the total amount of debts reached NIS 21 million, and a trustee was appointed, who managed to reach an agreement with creditors.
Thanks to the help of the state and the association of industrialists, an investor was found - the Indian company "Saisanket", which is ready to invest in the plant more than 4 million shekels. Now the company will start a recovery program, and in the coming year it is expected that the sales volume will reach 50 million shekels.
"Every workplace saved today is equivalent to saving the whole world," Kahlon rephrased the famous quotation from the Mishnah (the first part of the Oral Torah or the Talmud - "Cursor") and added:
"Hundreds of families and children will not lose their food. And although we have recently published a record low unemployment rate, we continue to struggle for each workplace.
And today we are happy to report that over 100 jobs will be saved thanks to the intervention of the government and Histadrut. The Minister of Finance promised not to dwell on what has been achieved and to continue to work to save the enterprises in distress throughout Israel.
