Intel's Israel unit exceeds $1 bln in Jan-Aug exports
By Steven Scheer
TEL AVIV, Sept 4 (Reuters) - Intel Israel Ltd, a unit of Intel Corp <INTC.O>, said on Monday exports in the first eight months of the year totalled $1.2 billion and are on target to exceed 2000 forecasts by more than 50 percent.
Earlier in the year, Intel predicted 2000 exports at about $1 billion, up from $810 million in 1999.
"I estimate that by the end of the year, Intel Israel will pass $1.5, $1.6 billion in exports, which should place us among the leading exporters in the country," said Alex Kornhauser, co-CEO of Intel Israel.
Most of the exports -- $800 million -- for the first eight months came from Intel's new chip plant in Kiryat Gat, which began production in September last year. Another $200 million came from the company's research and development centre in Haifa while its Jerusalem plant chipped in the remaining $200 million of exports, the company told reporters.
Intel Israel is estimating 2001 exports above $2 billion.
"We're expanding at a larger rate; there's been strong demand for PC's (personal computers) in 1999 and 2000 so we needed to ramp up manufacturing at a faster pace," said co-CEO David Perlmutter.
However, Intel officials said capacity at the Kiryat Gat plant, which produces the Pentium and another 150 chips, is already being stretched to the limit.
"Within six weeks we should be at full capacity," Kornhauser said
Intel said it hopes to expand and perhaps double its output and sales.
Intel officials said they proposed to the government either expanding its Kiryat Gat plant or building at least one more adjacent plant, with total investment -- including goverment subsidies -- at $2.5 billion to $3.5 billion over the next two to three years.
Intel received about $700 million in government grants for its $1.6 billion Kiryat Gat plant, the company noted.
"We are still waiting for the government to tell us what we should expect" in a combination of grants and/or tax breaks, Kornhauser said, adding he hopes Intel will get a response in a matter of weeks. He noted the new plant would employ up to 3,000 people.
Kornhauser, along with Perlmutter and Amir Ellstein, were named co-CEOs to replace the retiring Dov Frohman, who said he will remain at the company at least until year end.
Ellstein will also remain director of the Jerusalem manufacturing centre, while Perlmutter stays vice president of the Intel Architecture Group in Haifa and Kornhauser maintains his post as director of the Kiryat Gat manufacturing plant.
07:19 09-04-00 |
