Turkey’s trade ban pushes 'Israeli' steel company into bankruptcy

An 'Israeli' steel and scrap metal company has declared bankruptcy following Turkey’s suspension of trade with 'Israel' in response to the ongoing war on Gaza.

According to 'Israeli' business daily Calcalist, the Ashdod-based Shaul Gueta Company, which specializes in collecting, sorting, crushing, and selling scrap metal to foreign markets, was heavily reliant on exports to Turkey, which accounted for 70 percent of its sales.

The newspaper reported that the company’s revenue fell sharply from 200 million shekels (USD 61 million) in 2022 to roughly 35 million shekels (USD 11 million) in the first half of this year, leaving it with total debts of around 105 million shekels (USD 32 million).

Shaul Gueta’s largest creditor, the International, filed for 18 million shekels in court, while other creditors include Bank Hapoalim (15 million shekels), Mercantile Bank (11 million shekels), Mizrahi-Tefahot Bank (1.5 million shekels), and non-banking credit firms Max, S.R. Accord, and Ampla, each owed millions.

The Beersheba District Court accepted a petition by Israel International Bank and appointed attorney Doron Tishman as trustee. He will determine whether the company will be liquidated or restructured.

Company representatives told the court that the drop in revenue was largely due to 'Israel’s' attacks on Gaza and Turkey’s subsequent trade embargo. “Most of the company’s income had depended on exports to Turkey,” they said.

Turkey had gradually reduced trade with 'Israel' by about 30 percent at the start of the Gaza genocide. On May 2, 2024, Ankara fully suspended all trade operations, including imports, exports, and transit, across all product categories, effectively ending all commercial activity between the two nations.

Shaul Gueta’s operations were primarily conducted from its Ashdod plant, covering approximately 11 dunams (2.7 acres) in the city’s industrial zone, but the trade halt brought its business to an abrupt halt, ultimately forcing the company into bankruptcy.