The factory had sustained about NIS 10 million in damages since the rocket strikes began. It employs 86 workers
Following last Thursday's Qassam missiles attack, in which the factory was hit, Hollandia CEO Avi Barssessat said that the company was considering relocating the factory in Sderot to an alternative site out of the range of Qassam missiles.
Hollandia, which manufactures sleeping systems, has been operating out of Sderot for the past 11 years and employs 86 workers.
Hollandia International has been manufacturing and selling advanced sleep systems in the world since 1981.
Barssessat added that the factory had sustained about NIS 10 million in damages since the rocket strikes began.
"We've been considering relocating the factory for the fast few months," he also noted that "After the factory was hit, we decided it was time… this was a joint decision of both the management and the workers and we intend to suggest to all our workers that they should relocate to a rocket-free zone".
It first obtained the support of about 90% of its factory workers for the move. The factory is lagging in deliveries to customers, and half of its employees left due to the rocket fire.
A half-empty container was shipped to Spain yesterday, because the factory was unable to meet its production obligations to a customer.
Shipment of an order designated for Russia has been delayed for the same reason.
Nehara Industries in the South also reports that 20% of its employees have abandoned the production floor, and that it has sustained NIS 1.8 million in damages. Industrialists in the South near the Gaza Strip are expressing their worries by the lack of a warning system and protection mechanisms within the firms.
Company owners say the cost of insurance is rising, while the price of the land used to secure bank loans is falling, creating liquidity concerns.
Shraga Brosh president Manufacturers Association said last week following Hollandia's announcement that "The state of factories in Sderot and along the Gaza border is worsening - the direct and indirect damage has already cost more than NIS 60 million, and some 300 workers have already left".
The Manufacturers Association called on the government to support the initiative proposed by Minister of Defense Ehud Barak to give priority to local factories in government tenders.