ISRAEL: GERMAN CARMAKER VOLKSWAGEN AND ISRAEL'S DEAD SEA WORKS SIGN PARTNERSHIP TO EXTRACT MAGNESIUM FROM THE DEAD SEA

Record ID: 249963

  • Title: ISRAEL: GERMAN CARMAKER VOLKSWAGEN AND ISRAEL'S DEAD SEA WORKS SIGN PARTNERSHIP TO EXTRACT MAGNESIUM FROM THE DEAD SEA
  • Date: 16th May 1996
  • Summary: TEL AVIV, ISRAEL (MAY 16, 1996) (RTV - ACCESS ALL) 1. WIDE OF ROUNDTABLE TALKS BETWEEN ISRAELI PRIME MINISTER SHIMON PERES AND VOLKSWAGEN (VW) DELEGATION 2. VOLKSWAGEN CHAIRMAN, FERDINAND PIECH SEATED 3. PERES SEATED 4. CHAIRMAN OF ISRAEL CHEMICAL, SHOUL EISENBERG SEATED 5. SIGN "DEAD SEA MAGNESIUM" 6. VW DELEGATION AND ISRAELI GOVERNMENT OFFICIALS AT RECEPTION 7. PIECH AT RECEPTION / PAN OF RECEPTION 8. PIECH ADDRESSING RECEPTION / SAYS THEY WILL BUILD UP A CAPACITY OF 27 THOUSAND TONNES A YEAR. TOTAL INVESTMENT FOR THIS FIRST STAGE WILL AMOUNT TO 390 MILLION UNITED STATES (U.S.) DOLLARS. AS SUCH THIS JOINT VENTURE IS THE LARGEST INVESTMENT BY A EUROPEAN COMPANY IN ISRAEL (ENGLISH) 9. PEOPLE LISTENING 10. CHAIRMAN OF DEAD SEA WORKS, URI BEN-NOON, ADDRESSING RECEPTION / SAYS THE DEAD SEA WORKS EMPLOYEES WILL RUN THIS COMPANY AND VOLKSWAGEN SHOW THE CONFIDENCE IN OUR WORKERS AND MANAGERS THAT THEY ARE READY TO INVEST A LOT OF MONEY AND TO PUT THAT MONEY IN OUR HANDS, WHICH WE WILL TAKE TO BUILD A PLANT AND WE WILL MAKE IT A SUCCESSFUL VENTURE (ENGLISH) 11. PEICH LISTENING 12. ISRAELI FINANCE MINISTER, ABRAHAM SHOHAT, ADDRESSING RECEPTION / SAYS THIS JOINT VENTURE SYMBOLISES THE CHANGE IN ISRAEL'S ECONOMY (ENGLISH) 13. PEOPLE APPLAUDING Initials Script is copyright Reuters Limited. All rights reserved.
  • Embargoed: 31st May 1996 13:00
  • Keywords:
  • Location: TEL AVIV, ISRAEL
  • City:
  • Country: Israel
  • Reuters ID: LVA1B2DQ6J2JZYNAOOZG4NIMC8KO
  • Story Text: INTRO: German carmaker Volkswagen AG and Israel's Dead Sea Works Ltd last week signed a partnership to extract magnesium from the Dead Sea. The largest investment in Israel by a European company, the 700 million U.S. dollar project will be used by Volkswagen to build lighter, more fuel efficient cars.

    German carmaker Volkswagen AG and Israel's Dead Sea Works Ltd on Thursday (May 16) signed a partnership to extract magnesium from the Dead Sea.

    Volkswagen will hold 35 percent of Dead Sea Magnesium. Dead Sea Works, a subsidiary of Israel Chemicals, will retain 65 percent.

    Volkswagen chairman, Ferdinand Piech, said the magnesium plant in Sedom would build up to a capacity of 27 thousand tonnes in the first year. He said total investment for this first stage would amount to 390 million U.S. dollars.

    Production would increase to 55,000 tonnes in the second stage, to be initiated within two years, making Israel the world's third-largest producer of magnesium, after Norway and Canada.

    Magnesium, 30 percent lighter than aluminium, will be used to build lighter, more fuel efficient cars. While it is a little more expensive than aluminium, Piech said the price of a car would not differ much because less material would be needed.

    At the height of production of Volkswagen Beetle in the 1960s, the company used 42,000 tonnes of magnesium a year for its various parts such as the gearbox. However cheaper aluminium took over at a time when the cost of fuel was not a major concern.

    Volkswagen, which plans to introduce four new models before the end of the year, will use magnesium in the gearbox of one.

    Addressing a reception in Tel Aviv, chairman of Dead Sea Works, Uri Ben-Noon, assured VW of the dedication of all his employees to making the plant a successful venture.

    In addition to the 700 million U.S. dollar project, which will receive a 38 percent subsidy from the Israeli government, the partnership anticipates within two years the creation of a die-casting facility for the manufacture of car parts made from magnesium at an additional investment of 50 million U.S. dollars.

    A magnesium research institute will be created in Israel, for which 70 million U.S. dollars has been allocated, including 30 million from Volkswagen.


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