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Gaza: the death of industry
Asharq Al-Awsat, Mar 23, 2008
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One of Gaza industry's 'graves,' the Arabic caption tells of the 500 hundred workers who 'lost their daily bread' when this factory was shut down. (Wissam Nassar, Maan Images)
One of Gaza industry's 'graves,' the Arabic caption tells of the 500 hundred workers who 'lost their daily bread' when this factory was shut down. (Wissam Nassar, Maan Images)
A 'cemetery' in the neighborhood of al Rimal in Gaza is attracting the attention of motorists and pedestrians alike. Set up last Tuesday in al Katiba Square, this symbolic cemetery is comprised of 'graves' symbolizing hundreds of factories that have been closed down as a result of the economic embargo.

The forty 'graves', which have been adorned with flowers, each have a tombstone that bears the name of the factory and the number of employees who have lost their jobs in the aftermath. The Popular Committee for Resisting the Siege (PCRS) in Gaza is responsible for the creation of this cemetery as a protest against the economic blockade that has been imposed on Gaza following the Palestinian legislative elections in 2006.

According to the General Union of Palestinian Industries, the embargo has caused the closure of 96 percent of industrial enterprises (3,900 enterprises), which has resulted in the redundancy of 140,000 employees. Presently, the number of factory employees does not exceed 1,500 workers.

The census has also indicated that the Palestinian industrial sector is divided into four main divisions: furniture factories, foodstuff factories, textile mills, and factories manufacturing construction materials. Ninety percent of furniture factories have been closed down while 95 percent of timber workshops are out of business.

Statistics also indicate that in the furniture industry local products and those manufactured for export have been damaged as a result of being stored for long periods of time in storehouses.

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These products are normally exported to the West Bank and Israel using an estimated capacity of 400 cargo trucks. The goods are valued at approximately US $8 million. The closure of furniture factories has cost over 6,000 employees their jobs and the estimated losses over that period in the furniture industry are believed to be US $12 million.

As for the textiles and clothing sector, estimates indicate that all the enterprises operating in this sector have been closed down; over 960 factories that used to produce 5 million garments annually of which 95 percent is exported to Israel. Textile mills have reported a US $10 million loss in terms of actual value, in addition to approximately one million articles of clothing that had been manufactured for the summer season and ready to export to Israel. Sewing factories are believed to have 25,000 employees, however manufacturing clothes for the local market is likewise paralyzed as a direct consequence of the shortage of fabrics and the cost of materials required for sewing. The estimated losses impacting this sector are believed to be US $20 million.

As for the foodstuffs factories in Gaza, they currently only operate 30 percent of the original capacity which is why production is limited and moreover cannot be imported to the West Bank and elsewhere. The three major carbonated beverages factories that previously had a workforce of 900 laborers are now closed down since Israel bans the entry of carbon dioxide into Gaza – an essential ingredient in the carbonating process. The beverages industry has suffered the loss of an estimated US $3 million. The General Union of Palestinian Industries has stated that the blockade has resulted in the closure of all construction factories, which include 13 tile factories, 30 cement plants, 145 marble factories, 250 brick factories – all of which has resulted in the loss of 3,500 jobs.

Samih al Haddad who owns Al Haddad Factory for Electrical Appliances told Asharq Al-Awsat that he has not purchased the required raw materials for the past eight months. He added that the factory, which he part-owned with his brothers, has suffered the loss of US $1 million as a direct result of the economic embargo and another million in goods and supplies that have been seized and held in Israeli port warehouses. Al Haddad explained that before the blockade, he had 63 employees, however today he only has 20 workers who work part-time shifts. He said that he was pessimistic and added that he expected the situation to deteriorate even further.

To read the full article please visit Asharq Al-Awsat.


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