Corona virus: Israeli companies with activity in China indicate no significant impact on business

The reports of Israeli public companies holding significant activity in China indicate that there is currently no significant impact on business. However, the expected harm is mainly in the tourism sector of Chinese who will not come to Israel.
 It is estimated that about 24,000 tourists from China will be canceled in the next two months. Most of them spend an average of seven nights per night. This is a loss of close to 170,000 overnight stays in February and march. 
As mentioned, the condition of the companies is better. Hamlet's share - which manufactures fasteners, taps and valves for gas transport and command and control systems - dropped 4.3% yesterday, completing a 22% drop from its January record. Hamlet (+ 0% 5973) informed that the administration in the area where the company is located announced the extension of the local holiday break this week. In order to fulfill the orders and not to damage the company's supplies from a factory in China, the company's management intends to temporarily transfer the factory in China in the form of seven working days per week upon return of employees in China.
In recent days, the Manufacturers Association has come to the attention of Israeli industrial companies that are already affected by the Corona virus. These are companies that manufacture in Israel and use raw materials imported from China or from suppliers operating in other countries, but use Chinese produce in their manufacturing process. The Manufacturers Association opened a special situation this evening to assist Israeli manufacturers who are currently not receiving shipments or payments as a result of the spread of the virus.
As a result of discontinuing shipments from China and failing to stop production, many companies are turning to suppliers in other countries to continue to receive raw materials. Importing these materials from suppliers in other countries is expected to drive up production and lead to price increases. If the crisis persists, a shortage of shelves may occur. It should be emphasized that, unlike the SARS epidemic, companies all over the world now rely on the Chinese economy, so stopping industrial activity in China affects suppliers all over the world who work with Israeli companies.
The purpose of the situation is to assist Israeli industrialists in finding suppliers capable of delivering raw materials to Israel, assisting in the regulation of bureaucracy as a result of the events, and addressing a number of problems that arise among companies as a result of the paralysis of the Chinese economy.
According to the Central Bureau of Statistics in 2019, imports of goods from China are estimated at $ 6.7 billion. The head of the situation room is headed by Elad Netzer, director of the Department of Business Economics at the Manufacturers Association, who is in continuous contact with the various government ministries to update any new developments.
President of the Manufacturers Association, Dr. Ron Tomer: "The Corona virus that is currently paralyzing the Chinese economy proves that the State of Israel must not lose productive and economic independence and we must take care to establish an independent industrial infrastructure that will address this independence in times of political, security or medical crisis. We are a country that has become addicted to cheap imports and now this addiction is starting to hurt. If this trend continues, the Israeli consumer may run into empty shelves. "

A wave of cancellations of Israeli travel to China in the coming months. Tens of thousands of airline tickets have been canceled so far, including organized trips and vacation packages. Senior Tourism Marketing Manager in the Far East told our correspondent Sharon Idan that almost all bookings were canceled until after the Passover holiday
In the meantime, the death toll from the Corona virus in China rose to 100. This is an increase of twenty-five deaths from the virus. Another thousand and three hundred were added to the count. Yesterday, China extended the holiday period to prevent citizens from leaving their homes. Soon, Beijing decided to postpone opening universities and schools.