Osem Investments, the Israeli food group in which Nestle owns a majority stake, is to close an ice cream plant in Kiryat Malachi.
Local press reports have suggested production is to be moved to a plant in Arad on the request of Israel’s finance minister, Yair Lapid, after the city has been hit with a wave of job losses following the closure of Arad Towels.
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Osem, in which Nestle owns a 63% stake, did not confirm the reason for the closure of the plant when approached by just-food. It also did not comment on how many jobs would be lost as a result of the closure.
A report carried by local publication Globes citing an Osem statement said: “As the Osem CEO wrote to the workers, Osem will make sure that the Kiryat Malachi workers, an inseparable part of the Osem family, have jobs, just as the company has done up until now. The employment solutions will include jobs at nearby Osem factories in Kiryat Gat and another in Sderot. Workers who want to move to Arad to work in the new plant will receive assistance from the company in moving there.”
Osem told just-food it had “nothing to add to the statement in the Globes article”.
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