Views clash over P&G closure [Archives:2002/25/Business & Economy]

BY MAHYOOB AL-KAMALI
YEMEN TIMES SAFF
Clashing information over the closure of Procter & Gamble in Yemen has become the focus of the public.
Sources at the company said the closure is attributed to poor economic conditions.
In contrast to this statement the products of P&G were in high demand by the people of Yemen due to their high quality.
P&G along with Thabet Bros. Group has agreed to close the Taiz-based plant. Thabet Bros. Group owns 30 percent of the plant. The plant produces detergents, soap and other products.
The investment volume of P&G has been estimated at USD 90 million. The company has operated the plant since its establishment.
Well-informed sources said that the closure of the plant will start in August. More than 245 office employees and more than 1000 factory workers will lose their jobs.
The company will compensate plant employees in accordance to international criterion.
After closure, the company management intends to continue trade activities directly through its Yemeni partner.
Some sources say that the closure of the plant could be regarded as a precautionary measure to a terrorist threat. Proof of this might be that the company will transfer the plant equipment and machines to other countries.
Retailers point out that consumers greatly affected the sales of US-Israeli products in Yemen by boycotting campaigns.
The Country Manager of P&G said previously that the closure of the plant had been discussed earlier and that it had no relation with the call to boycott the Israeli-US products.
More than 60 American or western products have been boycotted in a protest against US policies concerning Palestine. P&G products were include in this boycott.
Local consumers have been negatively influenced by the boycott of Israeli-US products.

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