Trinity Industries’ chief executive says he has been warning for years that the industry is “going to collapse” and “we need to make sure it doesn’t”.
Trinity Industries is a major producer of pharmaceuticals and biotechnology products in Israel, including its flagship product, GSK, the world’s largest producer of life-saving drugs.
But the industry’s fortunes have taken a major hit in recent years, with the Israeli government ordering its closure in recent months.
“There’s a danger of a dangerous trend where we’re going to collapse.
If we don’t act, it will be like the United States, which had a collapse in the 1930s and 40s, and the collapse happened because the world took it for granted that it was safe to do business,” said Tristan Golan, Trinity’s CEO.
“We are the first to say this is not a good idea, we are going to stop producing.”
Golan said that when he told senior management in the company that he wanted to step down, they said they would not do so.
“They said they wouldn’t do it because they don’t want to see the company collapse.
It is a lie,” he said.”
They didn’t have any other option.
They couldn’t make a choice.
There was no other choice, it was just impossible for them to say no.”
It’s been like that for decades.
It’s only now that they are starting to realise the magnitude of what is going on and how we’re heading toward it.
We have to act now, otherwise it will just be another one of those collapses.
“This is not just a business problem, this is an economic problem.”
Golans statement comes a day after Golan warned that the company would be losing money if it did not move quickly.
“The current situation has not gone down well with investors.
We are in a very dangerous period, and if we don, it won’t be long before the company collapses,” he told reporters at the company’s headquarters in Tel Aviv.
Golan has repeatedly spoken out against the closure, claiming it was needed to protect its pharmaceutical industry.
He has also criticized Prime Minister Benjamin Netanyahu’s government, saying its “reckless policies” have been causing “death and destruction” in the Palestinian territories and that it has been harming Israel.
In response to his warnings, Netanyahu said on Tuesday that he is “deeply concerned” about the potential consequences of a possible Golan collapse.
“I want to emphasize the fact that we cannot allow the company to fail, and we cannot let its closure affect our future,” he wrote on Facebook.
The government, which has yet to respond to Golan’s concerns, has already ordered the closure of two pharmaceuticals plants and ordered a moratorium on new projects in the area, which is home to around one-third of the country’s pharmaceutical production capacity.
The closures were approved by a government advisory panel on Thursday and have caused “profound damage” to the local economy, Golan said, adding that the closures have cost the economy tens of billions of shekels ($1.3 billion).
Israel’s Minister of Economy, Tourism and Transport, Yuval Steinitz, has warned that if a collapse occurs, it would be “a catastrophe” for Israel.