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.