The Israeli steelmaker Shaul Gueta Iron and Steel Company has declared bankruptcy after suffering a drastic collapse in business following Turkey’s decision to halt all trade with Israel amid the Gaza conflict, according to media reports.
The company’s total debts have reached approximately ILS 105 million ($32.24 million) and as 70 percent of its sales were tied to exports to Turkey, making the embargo a critical blow to its operations.
Trade ban: Major factor in the collapse
Turkey had officially suspended exports, imports, and transit trade with Israel across all product categories as of May 2, 2024, in response to Israel’s military actions in Gaza.
During court proceedings, the firm cited the Turkish trade ban as the primary cause of its financial downfall, stating that the loss of its primary market made continued operations unviable.
Legal and financial aftermath
Following the declaration of bankruptcy, the Beer Sheba District Court appointed a trustee to decide whether the company would be liquidated or restructured.