[This is a translation of an article that appeared on 31 October 2008 on the National Swedish Radio, news program "Ekot", available in original form here: http://www.sr.se/ekot/artikel.asp?artikel=2412000 – translated by International Humanitarian Law Program, Diakonia Regional Office in Jerusalem, www.diakonia.se]
Soda Stream manufactured in West Bank
The Soda Stream machine, used for making drink carbonate, a big seller in Sweden is partly manufactured in the West Bank, which Israel occupies in violation of international law. The Empire company, that sells the machine in Sweden, is led by former party leader of Ny Demokrati, Ian Wachtmeister.
The company's chief executive Johan Kallinge about the production:
- There are different parts to the machines. Both carbon dioxide cartridges and other plastic parts," said Johan Kallinge.
The factory where the drink carbonating machines are manufactured is located in Maale Adumim, the largest Israeli settlement in the West Bank just outside Jerusalem. The settlement is highly debated, particularly since an international brawl flared up around a planned expansion.
The EU has called Israel's settlements the main obstacle to peace in the region, and Israel has been repeatedly asked to stop settlements and settlement building, which according to the UN, contravene international law. This has not happened; on the contrary, the settlement industrial parks offer generous tax incentives to companies establishing themselves there and rent is low.
The drink carbonating machine factory is owned by Soda Club company, whose largest shareholder is an Israeli venture capital firm. But in Scandinavia, since four years Ian Wachtmeister’s Empire sells the drink carbonating machines. Empire’s CEO Johan Kallinge visited the factory.
- It’s a factory where all sorts of people work. Many are Palestinians, then you have Jews, it’s a mixture. Let’s say the factory wants everybody to be able to work in harmony," said Johan Kallinge.
Salwa Alinat is the West Bank coordinator for Kav la Oved, an independent Israeli labour organisation. She met workers from the factory a month ago and they didn’t recognise the claims of harmonious work conditions.
- Palestinian workers say they are discriminated against. They don’t even make half the minimum wage and working conditions are poor. If they demand their rights, they will be fired. This is the story at many factories in this area but Soda Club’s factory is one of the worst," said Salwa Alinat.
For Swedish Empire, drink carbonating machines have proven very good business. Last year, revenue rose by stunning 380 percent to 160 million SEK. Pre-tax profit reached 20 million SEK and the future looks bright. In a few years, Empire has sold 600 000 machines.
- The development has been tremendous," said CEO John Kallinge.
When did you realise that the factory is located on land occupied by Israel according to the UN?
- It was really when you called me," said Johan Kallinge.
When Empire’s chairman Ian Wachtmeister learned that Ekot had called and asked about the factory, he immediately contacted the state department.
The Foreign Ministry said that “the opinion of the Swedish government is that establishing business, or business relations with companies in the settlements is inappropriate.”
As a consequence, Ian Wachtmeister wants to move production of the drink carbonating machines and Wachtmeister alerted Soda Club president Daniel Birnbaum of this both verbally and in writing.
- We think they should move the manufacturing of our products. We can not determine where they should have their factories, but we may have influence over where they manufacture our products," said Ian Wachtmeister.
Eko has tried to reach Soda Club president Daniel Birnbaum for a comment, without success.
The author of the article, Daniel Öhman, has asked to add the following on 5 November 2008:
Mr Daniel Birnbaum CEO of Soda Club did respond to the report. Late Friday he sent an email to Swedish Raadi Ekot with the following information. The comment was also published in the news broadcast on Swedish Radio.
"Soda-Club will supply the Scandinavian markets with product sourced from any of our 7 facilities other than the Mishor plant which is located in the area in dispute, outside Jerusalem. Personally, I feel this is a shame for the hundreds of employees who have found employment, healthcare, and a future for their families in this facility"