Shibh Aljazeera Net | Red Sea
The Hebrew economic newspaper “Globes” reported that a Japanese-owned factory in Israel is facing the risk of large-scale layoffs and potentially even closure due to multiple factors, with one of the main reasons being the effects of the naval blockade imposed by Yemen’s forces on Israel.
According to the report published on Wednesday, the “Alliance Tire” factory in Hadera, owned by the Japanese company “Yokohama Rubber” since 2016, may soon face a significant reduction in its workforce and possibly shut its doors after operating for about 75 years.
Impact of the Blockade on Production and Shipping Costs
The report states that the factory’s owner is looking for more cost-effective production alternatives, especially as shipping costs have increased since the onset of the war and the naval blockade by Yemen’s forces in the Red Sea. This has significantly raised the costs of importing raw materials and exporting products. The factory primarily exports its products, and any disruption in shipping directly impacts its operations.
The Uncertain Future of the Factory and Its Workers
Sources close to the factory’s management indicated that the Japanese company would decide the factory’s future in the near future, which employs about 450 workers. The sources mentioned that a final decision has yet to be made, but it is expected soon. Once the decision is made, employees will be informed first, followed by an official announcement.
Factory’s History and Acquisition by Yokohama Rubber
The newspaper also stated that “Yokohama Rubber” acquired the factory in 2016 for $1.2 billion. The factory specializes in producing tires used in vehicles and equipment for agriculture, industry, and construction.
The report concluded that while the factory was once a significant economic pillar in the region, the ongoing impacts of Yemen’s naval blockade on shipping have put its continued operation in jeopardy, highlighting the severe economic consequences of this crisis.