SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934
For the Month of January 2006
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AMERICAN ISRAELI PAPER MILLS LTD.
(Translation of Registrant's Name into English)
P.O. Box 142, Hadera, Israel
(Address of Principal Corporate Offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
|X| Form 20-F |_| Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(1): |_|
NOTE: Regulation S-T Rule 101(b)(1) only permits the submission in paper
of a Form 6-K if submitted solely to provide an attached annual report to
security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in
paper as permitted by Regulation S-T Rule 101(b)(7): |_|
NOTE: Regulation S-T Rule 101(b)(7) only permits the submission in paper
of a Form 6-K submitted to furnish a report or other document that the
registrant foreign private issuer must furnish and make public under the
laws of the jurisdiction in which the registrant is incorporated,
domiciled or legally organized (the registrant's "home country"), or
under the rules of the home country exchange on which the registrant's
securities are traded, as long as the report or other document is not a
press release, is not required to be and has not been distributed to the
registrant's security holders, and, if discussing a material event, has
already been the subject of a Form 6-K submission or other Commission
filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the
information contained in this form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under the
Securities Exchange Act of 1934:
|_| Yes |X| No
If "Yes" is marked, indicate below the file number assigned to the
registrant in connection with Rule 12g3-2(b): 82-______________
Attached hereto as Exhibit 1 and incorporated herein by
reference is the Registrant's press release dated January 10, 2006.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
AMERICAN ISRAELI PAPER MILLS LTD.
(Registrant)
By: /s/ Lea Katz
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Name: Lea Katz
Title: Corporate Secretary
Dated: January 10, 2006
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
1. Press release dated January 10, 2006
EXHIBIT 1
NEWS
CLIENT: AMERICAN ISRAELI
PAPER MILLS LTD.
AGENCY CONTACT: PHILIP Y. SARDOFF
FOR RELEASE: IMMEDIATE
AMERICAN ISRAELI PAPER MILLS LTD. DISCUSSES COST SAVINGS PLANS
Hadera, Israel, January 10, 2006... American Israeli Paper Mills Ltd. (ASE:AIP)
(the "Company" or "AIPM") announced, today following publications in the Israeli
press and at the request of the Israeli Securities Authority, that it is taking
measures to achieve synergism between the companies within the AIPM group, in
order to leverage the size of the group and attain savings in different costs,
including energy and raw material costs.
The Company's goal, if the full potential of the savings will be realized, is to
achieve gradually over the next years, annual savings of approximately NIS 80
million, based on the groups existing costs and the current activity level.
These savings include, among others, the expected savings resulting from
switching to natural gas in the Company's plant in Hadera, if its plans will be
realized, as described in previous publications. These steps are aimed, among
others, at mitigating the influence of the extraordinary price increases in
energy and raw materials on the Company's results.
As part of the above mentioned steps, the companies in the group signed an
agreement with a fuel company, in the amount of approximately NIS 60 million per
year, in lieu of previous agreements, which will result in estimated annual
savings in the whole group (including associated companies) of approximately NIS
1.2 million.
Since the realization of the above mentioned savings is also contingent on
external factors, which are not under the Company's control, such as the date of
the completion of the natural gas pipeline and any further energy cost
increases, the Company cannot estimate the influence of the savings on its
profitability, as shall be expressed in its financial reports. The Company
wishes to clarify that there is no intention within the efficiency measures to
dismiss employees, only to decrease to an immaterial extent the hiring of new
employees, instead of retiring employees.
This press release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements predicting
AIPM's future growth. These forward-looking statements are inherently difficult
to predict and involve risks and uncertainties that could cause actual results
to differ materially, including, but not limited to, projections of future
performance including predictions of future profitability and expectations of
the business environment in which AIPM operates. For a detailed discussion of
these and other risk factors, please refer to AIPM's filings with the Securities
and Exchange Commission, including Form 20-F and Reports on Form 6-K.