The company will fire at least 50 employees.
Sources inform ''Globes'' that Alliance Tire Co. Ltd. will close part of its Israeli operations and fire at least 50 employees. Alliance Tire chairman Israel (Isia) Tchetchik said that the operation was losing money and that it will be transferred to India because the company could not cope with the competition in the market. He added that the goal was to reduce the company workforce to 730.
Tchetchik said, "The manufacture of simple tires will go to India because we can't compete on price."
Alliance Tire had 916 employees at the end of 2008, according to its financial report. The company fired around 200 employees last year as part of its restructuring plan, and has fired a further 100 since the beginning of the year.
Fishman Holdings sold Alliance Tire to Warburg Mergers (2007) Ltd. in 2006 for $48 million.
Eliezer Fishman is the controlling shareholder in “Globes”.
Published by Globes [online], Israel business news - www.globes-online.com - on June 2, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009