Sunday, July 06, 2008
Herut sold for 3 million dollar
I did work for Herut in the Achziv Wastewater Treatment Plant construction and running in. That was about 18 years ago and already then I wondered how the company was surviving while paying such good salaries. My boss, Shmuel S., had a service luxury car, and his salary was like a Tahal's vicepresident. Herut was founded in 1918 and specialized in electromechanical projects, such as air conditioners, elevators, fire fighting, water softening equipment, and package wastewater treatment plants through it subsidiary ALCID. Herut was bought together with Shikun & Bnia by Sari Arison, and then joined with TAHAL, and then --- I dont know. It disappeared from my sight.
3 million miserable deflated dollars are nothing for a prestigious electromechanical contracting operation, only its large Holon Industrial Area plot is worth much more. Probably the company was making losses for a long time, since the time when it was owned by the Histadrut, the Workers Union, in the fifties.
But this low prices is a bad sign, it means that the branch I am working in, electromechanical installation, is not profitable, and has poor perspectives. That is the explicit reason why Sari Arison is selling it. The contracting business in Israel, she says, is very competitive and will offer no profitable opportinities in the near future. Which I knew for a long time, but am unable (unwilling) to internalize.