Palestinians penetrate world market
Palestinians penetrate world market
By Sami Aboudi
NABLUS, West Bank (Reuter): Despite stiff Israeli security
restrictions, one West Bank factory has broken into the export
market with a "Made in the West Bank and Gaza" label.
The al-Akkad Fashions Factory broke new ground in June when it
put 3,000 pairs of trousers on sale in Britain in a deal made
under the auspices of the privately owned Palestine Garments
Company (PGC).
The trousers are selling at Marks and Spencer (M&S), the chain
of stores founded by a Russian Jew and a Englishman a century
ago.
Building on its success, the Nablus-based al-Akkad company has
embarked on another contract to produce 75,000 pairs of blue
jeans for M&S by the end of the year. Further contracts are
expected for next year.
Working with PGC -- Marks and Spencer's exclusive agent in the
West Bank and Gaza Strip -- the al-Akkad factory expects to turn
a handsome profit and help put the Palestinian garment industry
on the world map.
"This is the largest single deal in the history of our
company. I am sure that this deal will open the way for us to
enter the European and world markets," said Mufeed al-Akkad,
manager of the company.
Peter Wiegnad, chairman of Claremont Garments, a major M&S
supplier which brokered both deals, told Reuters the second
contract was for around one million pounds sterling (US$1.55
million).
With about 150 workers, the al-Akkad company is one of the
largest and best organized industrial ventures in the West Bank.
It has a potential to employ up to 500 workers and a capacity to
produce about 100,000 garments a month.
Its three-story factory is furnished with modern sewing,
washing and ironing machines. The factory has power generators
enabling it to work during power cutoffs.
For nearly 25 years, the company had relied on subcontracting
work for Israeli companies. Its products, marked with the label
"Made in Israel", are being sold across the Jewish state or
exported to Europe and the United States.
Like most garment factories in the West Bank, al-Akkad started
out as a small family business. It has since grown into a major
West Bank enterprise.
The prospect of exporting directly to Europe and the United
States promises to raise the company's profits allowing it to
expand its activity.
"Instead of making orders for Israelis to export to Europe, we
would like to export products ourselves and get all the profits
ourselves," said company vice-president Issam al-Akkad.
Under an economic accord signed when Israel and the PLO sealed
their 1993 self-rule, Palestinians are entitled to trade directly
with the outside world. But Palestinians complain that Israel's
security restrictions make trade with the outside world a costly
business.
The vice-president said products shipped through Israeli ports
must go through security checks, requiring storage fees and
possible penalties for potential delays in deliveries.
A five-month-old Israeli closure on the West Bank and Gaza
Strip, imposed when Islamic suicide bombers killed 59 people in
February and March, made trade even more difficult.
The closure pushed unemployment in the West Bank and Gaza
Strip to more than 50 percent and caused an economic slowdown.
Al-Akkad's only attempt at direct exports earlier this year
failed to yield any profits when Jordan imposed a customs tax on
products intended for sale in the kingdom.
The deal with Claremont Garments provided the al-Akkad factory
with an opportunity to reach the international market using the
"Made in the West Bank and Gaza label" without the headache of
handling exports.
Under the contract, PGC handles import and delivery of raw
materials and the export of the finished products. PGC experts
along with Claremont's engineers train workers and supervise
production to ensure compliance with international standards.
"We have learned to rely on ourselves and we are happy with
the results," said Issam al-Akkad.