Vishay puts Jordanian-Israeli joint venture on hold

Published October 24th, 2000 - 02:00 GMT

Vishay Electronics International Co. has temporarily stopped its plans to construct a facility in Jordan for manufacturing electronic components, the president of Vishay Israel, Marc Zandman conveyed. The plans to build the new electronics factory were originally made in partnership with Omar Saleh of Jordan's Century Investment Group. 

 

The recent deterioration of the security climate has raised questions about the stability of joint ventures between Israel and its neighbors. Israeli entrepreneurs fear that an escalation of hostilities in the territories would create pressure to close these joint ventures. As a result of the recent escalations in violence, several Arab nations have called for the cessation of all economic cooperation with Israel. 

 

However, Vishay does not acknowledge that the instability caused the plan's deferral, the Israeli Ha'aretz daily reported. "There is no connection at all between the security incidents and our investment plans in Israel," Zandman stressed. "On the contrary, we are urging the Industry and Trade Ministry to expedite its handling of these [plans]," he added. 

 

"We were close to the end of the planning stage of the project and at the last moment put it on hold, until we feel sure," Zandman explained. Zandman added that Vishay will maintain contact with Saleh and reactivate plans to build the facility when the situation stabilizes. “We're not in a hurry. We'll take our time until we don't have to wonder whether the employees will report to work or if there will be attacks against the factory," Zandman said. 

 

Saleh, a Jordanian entrepreneur, was one of the first Jordanian businesspeople to organize and taken on joint ventures with Israel following the signing of the Jordan-Israel peace accord. Saleh expressed his conviction that other high-tech companies would follow Vishay's lead and help realize King Abdullah's vision of developing a high-tech industry in Jordan. 

 

Vishay Intertechnology, Inc., is the largest U.S. and European manufacturer of passive electronic components and a leading producer of discrete semiconductor components. — (Albawaba-MEBG)

© 2000 Mena Report (www.menareport.com)


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