SodaStream to Move Factory From Over Green Line

YERUSHALAYIM (AP/Hamodia) -
Palestinians and Jews working at a SodaStream factory in the Mishor Adumim industrial park, next to Maalei Adumim. SodaStream says it employs 800 Palestinians and 500 Israelis at the Mishor Adumim plant.  (Nati Shohat/Flash90)
Palestinians and Jews working at a SodaStream factory in the Mishor Adumim industrial park, next to Maalei Adumim. SodaStream says it employs 800 Palestinians and 500 Israelis at the Mishor Adumim plant. (Nati Shohat/Flash90)

A representative for Israeli drink maker SodaStream International says its factory in Maaeli Adumim will be relocated next year to southern Israel, inside the 1967 lines.

Nirit Hurwitz said Wednesday that the facility will move in 2015 to Lehavim, in the  southern Negev. She said the decision to move is for “purely commercial” reasons.

Palestinian activists had launched a campaign boycotting the company because of the factory in Maaeli Adumim, which is in the Judean Hills, in Yehudah.

SodaStream has said it employs hundreds of Palestinians and gives them equal benefits as Israeli workers.

SodaStream CEO Daniel Birnbaum said: “We are working with the Israeli government to secure work permits for our Palestinian employees.”

Meanwhile, Globes said on Wednesday that SodaStream lowered its guidance for 2014 while reporting its third quarter results.

The company now sees full year 2014 revenue decreasing 9% from $562.7 million in 2013. SodaStream also sees full year 2014 EBITDA decreasing 26% over 2013 EBITDA of $62.2 million, while full year profit is expected to be down 42% from 2013 profit of $42 million.

SodaStream reported revenue of $125.9 million in the third quarter, down from $144.6 million in the third quarter 2013.

Net profit was $9.5 million in the third quarter down from $16.4 million in the third quarter 2013. Diluted earnings per share were $0.45, compared with $0.76 in the corresponding quarter of 2013.