Israel plans to shut major industrial zone in Haifa and go green

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08/06/2021 10:49

By Ari Rabinovitch
    JERUSALEM, June 8 (Reuters) - Israel is looking to shut a
major industrial zone in the coastal city of Haifa that health
officials say has been hazardous for years and turn it into an
ecofriendly commercial and residential hub.
    The plan is to phase out within a decade a number of
factories, including the country's largest oil refinery, that
supply much of the country's fuel products and petrochemicals
used in materials like plastics and asphalt.
    A 'metropolitan park' will be built in their place, with a
focus on green businesses, tourism, residences and nature.
    The move, which has drawn union opposition over potential
job losses, was recommended on Monday by a cross-ministerial
panel for government approval. The new government to be sworn in
next week has already said it intends to remove the factories.
    To meet its energy needs Israel will rely more heavily on
imports of refined petroleum products and will need to boost
storage of vital industrial materials. The environmental
protection minister welcomed the move, saying it was "serious
news for the health of residents and the future of Haifa."
    The labor union at Oil Refineries  ORL.TA , Israel's largest
refining and petrochemicals group that sits on 526 acres in the
bay area, has rejected the proposal. It says the company's
business is critical to the economy and has promised to use "all
tools at its disposal" to ensure its workers' future.
    Haifa, Israel's third largest city, juts off the coastline
into the eastern Mediterranean. Neighborhoods sprawl along the
slopes of Mount Carmel and descend into the bay that has grown
over the past century into a crossroads for trade and industry.
    Landmarks like the gold-enamelled domed shrine and pristine
terraced gardens of a hillside pilgrimage site for the
lesser-known Baha'i faith overlook smokestacks by the shore.
    The city, in turn, has high levels of air pollution and
residents suffer from an "excess" of ailments linked to air
pollution such respiratory disease, malignancies and birth
defects, a report by the ministerial panel said. The panel found
Haifa has become "stagnant" with low population growth.
    There has been, however, "significant improvement" in air
quality in the past decade with increased regulation, it said.
    If the recommendations are approved, the country will have
10 years to make alternative arrangements for imports and
storage before the deadline to end petrochemical activity.
    The government will have to negotiate terms with Oil
Refineries and ICL Group  ICL.TA , which operates a fertilizer
and specialty chemicals factory in Haifa, the committee said.
    Close to 2,000 will lose jobs in the change, though many
more will be gained in the long term, the committee said.
Industry officials say tens of thousands of jobs will be lost.

 (Editing by William Maclean)
 ((ari.rabinovitch@thomsonreuters.com;  +972-2-632-2202; Reuters
Messaging: ari.rabinovitch@thomsonreuters.com@reuters.net))