Nefatim, an Israeli-developed manufacturer of precision agriculture equipment, announced on Sunday the inauguration of one of its largest factories to date in Hermosillo, Mexico.
The 30,000-square-meter plant will supply farmers across North and Central America, and will be equipped with advanced automation systems to “ensure quality, efficiency, and reliability,” the company said.
“The opening of the new plant in Mexico is another important step in Netafim’s growth and in strengthening our global presence,” said Gaby Miodownik, CEO and President of Netafim.
The plant is expected to create approximately 200 direct jobs, while also pushing development and growth of local suppliers and service providers in Hermosillo and the region, the company statement said.
“The opening of the plant is a significant milestone for Orbia and Netafim in the Americas, and reflects our continued commitment to innovation, growth, and investment in the future of agriculture,” Miodownik added.
From a kibbutz in Israel to world leader in irrigation
Nefatim was founded in Kibbutz Hatzerim in 1965 and rapidly became one of the world’s leading companies in drip irrigation, a system that delivers plants a precise amount of water to use resources more efficiently.
The company currently has 33 subsidiaries, 19 manufacturing plants, 2 recycling plants, and more than 4,500 employees worldwide, making it a global leader in precision agriculture.
In 2017, it was acquired by Orbia, a Mexican giant conglomerate that operates in precision agriculture, building and infrastructure, fluorine, polymer solutions, and data communications.
Currently, Oriba owns 80% of the company, while Kibbutz Hatzerim owns the remaining 20%.
Chinese billionaire in talks to buy Israeli irrigation giant Netafim
Back in February, the Chinese billionaire Haoyu Wang was in talks to acquire control of Netafim from Orbia, with the Mexican company in discussions with various parties to sell its Netafim holdings to reduce its leverage.
Negotiations for a deal to sell control of Netafim to Israeli private equity fund Fortissimo, managed by Yuval Cohen, failed. Now, a senior source said that Orbia is examining the sale of its holdings to Wang as part of a group of investors he will join.
Wang currently lives in Maryland, US. He is of Chinese descent and has served as chairman of Dayu Conserving Water Group for the past nine years. This company, founded by his father, specializes in drip micro-irrigation systems, like Netafim.
Orbia acquired Netafim for $1.5 billion, based on the company's valuation. It is believed that Fortissimo sought to acquire the irrigation company at a valuation of $1 to $1.1 billion, but the deal did not go through. Now the final price tag in the deal may be higher.
Globes/TNS contributed to this report.