In 1991, Carmel Olefins Ltd. was founded (hereinafter: "COL"), under the joint and equal ownership of the Company and Oil Refineries Ltd. (hereinafter: "ORL"). The Company's industrial operations, including its facilities and ORL's ethylene plant, were merged and transferred to COL's ownership, and Carmel Olefins Ltd. became the main supplier of raw materials for the plastics industry in Israel.

As a result of this merger, the Company became a holding company, whose principal shareholding is 50% of COL's share capital. The founders signed a series of agreements regulating the relations between them, the way COL is managed, the feedstock supply from ORL to COL, and the structure of its board of directors.

The Company is actively involved in COL's affairs and provides support to COL during strategic moves, including its entry into the polypropylene production sector and, later on, during its production expansion project. These courses of action have positioned COL as the industry leader in Israel, and have helped to reinforce COL as a competitive player in the global polymers market.

In addition to its investment in COL, the Company engaged in two transactions, as follows:
a. A transaction for the acquisition of approximately 49.39% of the shares of Scailex Corporation Ltd. ("Scailex"), formerly the Scitex Corporation Ltd
b. A transaction for the acquisition of shares of Avgol Industries 1953 Ltd. ("Avgol").

Looking ahead
In order to nurture COL's continued growth, we enhance our core holding, COL, as part of our business strategy, and consider additional investments in the petrochemical industry and in tangential fields.

The management team
As a holding company, the Company operates with a streamlined staff committed to forging the Company's future and implementing its plans. This team includes the Chairman of the Board of Directors, Mr. Jacob Gottenstein, the Company C.E.O., Mr. Eran Schwartz, and the Chairman of the Finance and Investments Committee, Dr. Arye Ovadia.