The second company to be awarded a "special favorite enterprise" status • Sudhurst subsidiary will invest NIS 400 million in expansion of the plant in the Negev, and will absorb more than 500 employees • Minister Cohen: "Expressing confidence in the Israeli economy"

• Economy Minister Eli Cohen and Sudhster Chairman Birnbaum // Photo: Neria Zuckerman

Sudhester will invest NIS 400 million in expanding the Idan Negev industrial area and absorb more than 500 employees. Yesterday, the Director General of the Treasury, the Director of the Tax Authority and the Director General of the Ministry of Economy confirmed that after an economic examination of the viability of the economy, the company would be entitled to benefits under the law.

It is the second company to receive the approval of a "special preferred enterprise" under the Capital Investment Encouragement Act. The plan was approved, among other things, given the factory's geographical location, salary level, innovation level and employee productivity level. The Finance Ministry noted that the company's direct contribution to the state treasury would be significantly higher than the capital grant and the tax benefits it was expected to receive.

The company's investment in a plant in the Negev era began, and it will be deployed until 2023, at which time the plant's production capacity will be doubled. The recruitment of 500 new employees will continue over the decade, and at least 50% of them will be from low-participation populations, especially from Bedouin society. Due to the high productivity expected in the plant, the company will be able to pay employees who will receive high wages relative to what is customary in the area.

If the company meets the set investment and employment goals, Sudhester is expected to pay a 5% reduced corporate tax and dividend tax rate under the "Special Preferred" track by the end of 2029, by virtue of the Capital Investment Enforcement Act.

In addition, the Investment Authority Administration of the Ministry of Economy and Industry confirmed that making the investments in accordance with the approved plan would entitle the company to a grant of 20% of the NIS 80 million investment allocated from the Ministry of Economy and Industry's budget.

The process is followed by the legal offices of the ministries. Due to the fact that this was an approval during the transition government, special permission was also given from the Ministry of Justice for approval of benefits.

According to Eli Cohen, Minister of Economy and Industry, "The choice of PepsiCo Sudhester to continue to invest significantly in Israel and the periphery in particular is an important expression of confidence in the State of Israel and the Israeli economy. A partner in the road, and her re-election to invest in Israel strengthens the economy and employment in Israel. We expect this cooperation to continue in the future. We will continue to encourage and assist entrepreneurs and industrialists to invest in the periphery. "

"Exclusive Manufacturing Site"

Sudhester CEO Eyal Shochat said: "Sudhester has proven that not only does it stay in the country, but it is also expanding significantly. At PepsiCo, we understand that our plant in the Negev era has knowledge and innovation that is not available in the entire world, so they stated that they not only left production in Israel, but also made a large investment to double the plant's production capacity. Through the investment, Sudhester expects to double the company's production and export capacity from Israel, and to maintain the plant in Israel as its sole production site in the world. "

Dr. Nahum Itzkowitz, Director of the Investment Authority, added that "since the law of encouraging a special preferential route, or in its professional name, a strategic route, investments in this route have only been approved for Intel. The acquisition of the plant a year ago and doubling its confidence in society, industry and the economy in Israel should be considered. "