Jan 11, 2006. /Lesprom Network/. American Israeli Paper Mills Ltd. announced on Tuesday 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 ILS 80 million ($17.3 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 ILS 60 million ($12.9 million) per year, in lieu of previous agreements, which will result in estimated annual savings in the whole group (including associated companies) of approximately ILS1.2 million ($259 000). The American Israeli Paper Mills Group is the leading Israeli manufacturer and marketer of paper and paper products.