Officials in Haifa Chemicals announced on Sunday they have sent letters to 800 employees in two plants informing them production was coming to an abrupt halt, explaining a 600% in the cost of potash over the past five years has compelled the decision.

Plant operators explain the government has given exclusive rights Dead Sea Minerals for the production of potash in Israel and as such, they are dictating unacceptable realities in the marketplace, explaining that in 2009 alone, the price of potash has doubled, added the potassium derivative is required in their products.

Haifa Chemical officials explain the decision to halt production comes following two months of intensive talks with Dead Sea officials in the hope of reaching a mutually acceptable price for potash.

(Yechiel Spira – YWN Israel)