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© mariusz-szachowski-dreamstime.com Electronics Production | January 08, 2013

Flextronics Ofakim plant is saved?

Evertiq previously reported that the Flextronics plant in Ofakim in Israel was likely to close, because the company could not raise USD 50 million guarantees or credit insurance for the ECI contract.
However, it looks as if the plant is now saved. Flextronics is set to receive credit insurance for its USD 85 million contract with ECI, and thus 600 jobs are saved, the Globes reports.

Flextronics had previously asked the government-owned Ashra Israel Export Insurance Corp. Ltd to insure the contract, but the request was rejected by the Ministry of Finance due to high risk. However, continuous efforts made by Flextronics Israel's management have gathered top officials at the Ministry of Finance, Ministry of Industry, Trade and Labor, and at other ministries to find a solution to keep the crisis from getting worse.

"A creative solution is being prepared, in which many parties are participating, including the Ministry of Finance, the Ministry of Labor, ASHRA, and both ECI and Flextronics. The pending agreement could be signed soon, and will allow Flextronics to obtain the guarantees it needs, and prevent a severe jobs crisis in Ofakim," a source stated to Globes.

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