Layoffs and Activity Reduction in Israel: The Impact of the Shekel and Oil on the Company "Starplast"

SadaNews - A Hebrew report published in the "Calcalist" newspaper revealed the depth of the crisis facing the export and industry sector under the occupation. It reported that the company "Starplast," a leader in the production and export of plastic products, has started implementing severe austerity measures, including laying off some of its employees to cope with the economic decline resulting from the rising value of the "shekel" and increasing raw material prices.

According to Sada's economic translation, the company has been directly affected by European boycott campaigns and the current geopolitical conditions, leading to a contraction in its export activity.

The company currently employs dozens of workers in its factory located within the occupied territories of 1948, but several of them have actually left their jobs in recent months due to a decreased production pace.

Despite "Starplast" managing 90% of its operations in the United States (specifically in Texas and Virginia) and supplying global chains such as "Walmart," its total workforce has sharply declined from 650 global workers to significantly lower levels, especially in the occupied interior.

According to Sada's economic translation, the entire Israeli plastic industry is facing suffocating pressures due to the global rise in oil prices following military tensions and the war with Iran, which has caused a surge in the prices of essential plastic components by between 60% and 100%.

Sources in the industry indicated that supply issues and a shortage of raw materials are preventing price stability, as raw material suppliers seek to recover their previous losses by refusing to lower prices currently.

The current strength of the "shekel" has reduced the profits of exporting companies by no less than 20% compared to last year, in addition to the burden of rising interest rates, wages, and energy and water costs, as translated by Sada's economy.

The newspaper noted that "Starplast" was established in 1967, and its headquarters moved in the 1990s to the industrial area of "Alon Tavor" located on occupied interior lands.

The company specializes in producing household and kitchen items, plastic boxes, outdoor children's toys (such as slides and plastic houses), storage cabinets for gardens, and tool boxes, products that have become difficult to compete with due to high production costs and international boycotts.