ISTANBUL

An Israeli steel and scrap metal company has gone bankrupt following Türkiye’s decision to ban trade with Tel Aviv over the Israeli genocidal war in Gaza.

The Israeli business daily Calcalist reported Wednesday that the Shaul Gueta Company, based in Ashdod in southern Israel, collapsed as a result of the trade embargo imposed by Türkiye in response to Israel’s genocide in the Gaza Strip.

The company specializes in collecting, purchasing, sorting, crushing, compacting, and selling scrap metal, mainly to foreign clients, said Calcalist, adding that the company’s operations were mainly conducted from its Ashdod plant, built on 11 dunams (approx. 2.7 acres) in the city’s industrial zone.
Shaul Gueta Company had relied on exports to Türkiye for 70% of its sales, according to the newspaper.

It added that the company’s total debts amounted to about 105 million shekels (over $32 million), after its business volume fell from 200 million shekels ($61 million) in 2022 to roughly 35 million shekels ($11 million) in the first half of this year.

Shaul Guetta's largest creditor, the International, presented a debt of 18 million shekels in court. Other creditors include Bank Hapoalim (15 million shekels), Mercantile Bank (11 million shekels), and Mizrahi-Tefahot Bank (1.5 million shekels).

The company also owes 5 million shekels to the Max credit card company and 4 million shekels each to the non-banking credit companies S.R. Accord and Ampla, according to the Israeli daily.

Before the attacks on Gaza, the company earned around 70% of its income from exports to the Turkish market, leading to a sharp collapse in its trade volume after bilateral commerce was suspended.

The Beersheba District Court in southern Israel accepted a petition by the Israel International Bank and appointed attorney Doron Tishman as the trustee, who will decide whether to liquidate or restructure the company, said Calcalist.

Company representatives told the court that Israel’s attacks on Gaza and Türkiye’s trade embargo were the most significant factors behind the decline in sales, as most of the company’s income had depended on exports to Türkiye.

Türkiye had reduced its trade with Israel by about 30 percent from the start of the Gaza genocide until May 2, 2024.

On May 2, 2024, Türkiye completely halted all export, import, and transit trade operations with Israel across all product categories, ending all commercial activity, including customs and free-zone transactions, between the two countries.