NEW YORK (Jul. 26)
Israel’s industrialization program was given new impetus today with the signature of a contract initiating construction there of a $3,500,000 paper mill which will be the first in the Middle East to produce printing and writing paper as well as Kraft multi-wall bag paper.
Start of the project to launch a paper industry in Israel as a means of helping to offset the current world-wide shortage of paper products was announced by its two major sponsors, the Palestine Economic Corporation and the Mazer family of the Hudson Pulp and Paper Company, both of New York.
Plans for the mill, scheduled to be placed in construction this Fall and to be in operation by 1953, were jointly outlined by Robert Szold, chairman of the Board of the Palestine Economic Corporation, and Joseph M. Mazer, treasurer of Hudson Pulp and Paper Company. The Palestine Economic Corporation has been active for the past 25 years in pioneering the development of Israel through the establishment of new industries. The Mazer family has been identified with the paper industry for than 50 years.
Mr. Szold and Mr. Mazer said the new Israeli mill will be owned and operated by the American Israeli Paper Mills, Ltd. The latter, an Israeli Corporation with headquarters at Tel Aviv, was organized early this year by P.E.C. and the Mazer family. Paper manufacturers and merchants in the United States, Israel, South America, Europe, and Australia, also are participating in the project, Mr. Szold said.
The American Israeli mill is initially designed for the production of printing paper, multi-wall bag paper, semi-fine writing paper and tablet paper, with an annual capacity of approximately 12,000 tons. Exclusive of newsprint and tissue papers, it is estimated that the new plant’s output will meet 60 percent of the country’s current over-all annual paper requirements. At present, Israel imports all paper. It is estimated that domestic production of 12,000 tons per year will mean an annual saving for Israel of up to $1,000,000 in foreign exchange.