Supersol, Israel’s leading food supermarket chain, will receive government benefit in excess of US$40m as part of the investment for establishing the Gidron bakery plant in the Noam Industrial Park in the Negev.

The total cost of the new plant, which will employ 400 workers, is estimated at $127m. Gidron, a subsidiary of Supersol, produces fresh baked goods for the chain. A report in Haaretz notes that the benefits were promised to the supermarket chain “despite the fact that the plant does not meet the export criteria for receiving state benefits under the Investment Encouragement law.”