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 | | | Daewoo International fulfilled its Industrial Cooperation commitments to the sum of $75 million in setting-up the OPC power station at Mishor Rotem for the Israel Corp. April, 2013 | |
Daewoo International fulfilled its Industrial Cooperation commitments to the sum of $75 million in setting-up the OPC power station at Mishor Rotem for the Israel Corp.
(April, 2013)
The ICA at the Ministry of Economy estimates that the Industrial Cooperation achieved by Daewoo created about 750 new jobs annually.
The Korean corporation, Daewoo International, was chosen in 2010 by Israel Corp. to set-up the OPC power station at Mishor Rotem, after winning the Accountant General's BOT tender to build and provide the electricity produced at the power station.
The Korean company undertook an Industrial Cooperation commitment towards the Industrial Cooperation Authority (ICA) to carry out local subcontracting work to the value of 20% of the cost of setting up the power station within 30 months from the start of the project.
ICA Deputy Director General Gabriel Golomb said that Daewoo had fulfilled its commitment completely and carried out local subcontracting worth $75 million, according to the agreed timetable, by teaming with Israeli companies manufacturing metals, electrical and electronic components and performing other work to build and operate the power station. ICA estimates that the Industrial Cooperation that Daewoo undertook has created about 750 jobs annually in Israel.
Israeli companies which took part in building the power station and fulfilling the commitment include engineering companies Yanai and Baran, infrastructure and metal contractors Netivim Darom, Delouya, Issa Khouri and electrical and control equipment contractor Afcon. Water and effluent treatment systems were provided by GES, a fire extinguishing system was provided by Lahavot, air-conditioning systems by SK MKM, and the natural gas supply system was provided by Chemo Aharon.
ICA Director General Bina Bar-On said, "This commitment is an example of the way industrial cooperation maintains business activities in Israel even in instances where the state awards a franchise to a private company to build a power station in Israel. The ICA's activity opens doors and business opportunities to the Israeli industry, maintains jobs and contributes to the Israeli economy."
Bar-On added that two other companies recently won Accountant General tenders to build the solar and thermo-solar power station at the Ashalim Site and undertook industrial cooperation commitments: Ashalim Sun is committed to undertake $20 million and Megalim (a partnership between Brightsource and Alstom) a $100 million commitment. The commitments will be fulfilled through local subcontracting work in building the projects.
The ICA is a unit of the Ministry of Economy, authorized to supervise Industrial Cooperation activities in Israel. Foreign suppliers, to government ministries and other public institutions, are obliged to undertake Industrial Cooperation commitments in Israel, yielding billions of dollars for the Israeli economy each year, developing new markets for the Israeli industry overseas, encouraging technology transfer and creating thousands of jobs annually. |
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Israel’s Offsets Soar; More Local Firms Earn a Share, Defense News, Jan. 2013 |
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| |  | | | Senior Executives in the Procurement Division of Heavy Truck and Vehicle Manufacturer Navistar Came to Israel at the Invitation of ICA Director General Bina Bar-On (Jan. 2013) | Senior Executives in the Procurement Division of Heavy Truck and Vehicle Manufacturer Navistar Came to Israel at the Invitation of ICA Director General Bina Bar-On. These Executives Will Examine Next Week New Business Activities, to be Carried out with Israeli Companies (Jan. 2013).
The Amount of Procurements Made by Navistar from Israeli Companies has Averaged $70 Million Annually, Over the Past Three Years.
Navistar VP Global Procurement, Jim Moise and Manager Procurement - Global Parts, Armando Medina, two of the heavy truck and vehicle US manufacturer's most senior procurement executives came to Israel last Tuesday at the invitation of the Director General of the Industrial Cooperation Authority (ICA) of the Ministry of Industry, Trade and Labor.
The visit, which will last a week, is in cooperation with the Israel Export and International Cooperation Institute and in coordination with Navistar's representative in Israel Shimon Yogev. The visit will bring together the heavy truck and vehicle manufacturer's executives with some new Israeli companies that have the capability to serve as approved suppliers to Navistar. The meetings will be held with Israeli manufacturers Yamar Electronics, Whats & More, Rotech, Foamotive, Polyrit, Newton Propulsion Technologies, Brightway Vision, C-B4, Elspec, Fishman ThermoTechnologies, IMC, King Engine Bearings, A.L. Filter, Alex Original and Nordia Springs.
Navistar is one of the largest heavy vehicle manufacturers in the US and produces 80,000 trucks of various models each year, as well as diesel engines for buses and military vehicles with an annual revenue of about $15 billion. The company is active in Israel since the mid-90s and has sold thousands of trucks of various sizes to the Israel Defense Forces, as well as buses.
Adv. Bina Bar-On, ICA Director General said, "The visit of Navistar's representatives to Israeli companies is an exceptional opportunity for these companies to break into the US market on the basis of meeting requirements in terms of quality and competitiveness. The very fact that senior representatives came to Israel is an important expression of confidence in the Israeli industry and its capabilities and the new contacts will increase the volume of business between Navistar and the Israeli industry, which already now stands on an average of about $70 million annually for the past three years."
Navistar makes many purchases of truck parts from various manufacturers in Israel. The company began its activities in Israel as a result of its Industrial Cooperation commitments, following a sale of trucks to the Israeli MOD, and went on with the purchase of Israeli made parts and assemblies on a purely competitive basis. The Israeli suppliers that are already working with the company include Supergum, Omen High Pressure Die Casting, Oran, Ditron, Maayan Metals and many others.
The ICA is a unit of the Ministry of Industry, Trade and Labor, responsible for the implementation of Industrial Cooperation in Israel. Foreign companies that have contracts with government ministries, public and other State related bodies are committed to undertake an Industrial Cooperation Obligation towards the State of Israel, which eventually yield billions of dollars annually for the Israeli economy.
This visit is an example of the way that Industrial Cooperation maintains business activities in Israel due to State purchases of goods made abroad. The ICA's activities open doors and business opportunities for Israeli industry, preserve jobs, and contribute to the Israeli economy. |
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| |  | | | A delegation of 25 Israeli technology companies took part in an innovation day at the ABB’s headquarters in Zurich, Switzerland (November 2012) |
A delegation of 25 Israeli technology companies took part in an innovation day at the ABB’s headquarters in Zurich, Switzerland (November 2012)
On November 22, 2012, an innovation day was held by the ABB Company at its headquarters in Switzerland, with the participation of 25 Israeli technology companies. The innovation day was the outcome of joint activities of the Israeli Commercial Attachי in Switzerland, the Industrial Cooperation Authority (ICA), the Foreign Trade Administration (FTA), and the Office of the Chief Scientist (OCS) at the Ministry of Industry, Trade and Labor, the Israel Export and International Cooperation Institute (IEICI) and ABB Israel.
ABB Group is a multinational corporation and a world leader in electricity technology and machinery. ABB is active in over 100 countries and employs about 145,000 employees. In 2011 the Group's annual global revenues amounted to about $38 billion.
ABB Group is engaged in a range of areas such as electronic products, control and automation equipment for electricity generation and industrial processes, energy transfer, distribution solutions, low-tension products, motors and drives, intelligent systems and building robotic systems.
Prior to the innovation day, a call for proposals was published in Israel's financial newspapers with an offer to Israeli companies to submit their candidacy to take part in the innovation day.
The fields that the ABB Group focused on at the innovation day were water technologies, energy generation power stations, renewable energy, electrical switching in delivery and distribution, cyber security, general security like access control, surveillance, personal security, as well as on industrial automation.
Over 90 Israeli companies applied to take part in that innovation day. After a strict filtering process by the ABB Group, the number of companies invited was 25. Each company presented its product and capabilities to 33 of ABB’s Group senior executives from the Engineering Division, R&D Group, the Investments Unit, and other Company Divisions.
ABB has been active in Israel for over 20 years, mainly working with Israel’s Electric Corporation. These activities have resulted in the company's commitment for Industrial Cooperation in Israel, industrial activities with dozens of Israeli companies and recently making investments in two Israeli companies: Takadu and Pentalum. |
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| | | | | South Korea mulls importing Iron Dome (Nov. 2012) |
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| |  | | | Israel's Innovative Homeland and Cyber Security Solutions - New Catalog (Nov. 2012) | Israel's Innovative Homeland and Cyber Security Solutions - A new catalog of Israeli companies in the homeland and cyber security sectors has just been published to coincide with the 2nd Israel HLS Conference (Nov. 2012). To see the online version of the catalog please click here.
To order printed copies or CDs of the catalog please contact Ms. Leora Hadar: leora.hadar@moital.gov.il |
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| | | | | Summary of the Industrial Cooperation Authority's (ICA's) Activities in the First Half of 2012 | |
Summary of the Industrial Cooperation Authority's (ICA's) Activities in the First Half of 2012
Following the ICA's activities in the first half of 2012, 14 new IC commitments in the value of $196 Million, were undertaken by defense related foreign companies, and 44 IC commitments by commercial companies, worth about $60 million.
In total, 58 companies undertook Industrial Cooperation commitments worth about $256 million.
The balance of commitment to be yet fulfilled by foreign companies in Israel, amounts to about $1.242 billion of which about $450 million is to be carried out by 112 US companies, and about $679 million by 63 European companies, and $113 million by 12 companies from Asia.
Among the commitments received so far this year, the more notable commitments in the defense sector were received from ThyssenKrupp (due to their sale of the sixth submarine to the Israeli navy) and from Boeing DSS.
In the commercial sector, from MAN for their sale of buses and trucks; from Nocsal and STS for their sale of natural gas pipelines to Israel National Gas pipeline Ltd.
For the first time Airbus has undertaken an IC commitment due to their sale of new planes to the Israeli airline Arkia.
As of the beginning of the year, the ICA has signed new Umbrella Industrial Cooperation Agreements (UICA's) with three foreign companies: ABB Electro-Mechanical Corporation, and the automobile and trucks manufacturers Volvo and Fiat.
Notable fulfillments of commitments in the first half of 2012 were carried out by the following Israeli companies: Blades Technologies, Elbit Systems and two of its subsidiaries Cyclone and El-Op, Ashot Ashkelon, Carmel Forge, Israel Aerospace Industries – ELTA and RAMTA, Beit Shemesh Engines, Beit-El Zichron Yaakov, and Yail Noa. In addition foreign investments were made by Gemalto in Trivnet and by ABB in Takadu and Pentalum Technologies.
It should be noted that most of the companies with commitments report about their activities at the end of each year, thus the data reported herein is only partial.
IC commitments registered in 2011 totaled the amount of $951 Million and were undertaken by 93 foreign companies. $354 Million were undertaken by 61 companies in the defense sector, and $597 Million by 40 companies in the commercial sector. (Among these companies are such that undertook commitments in both areas – defense as well as commercial).
The amount of fulfillments reported in 2011 totaled $2.41 Billion carried out by 127 companies. Of this amount $702 million was fulfilled in the defense sector and $1.71 billion in the commercial sector.
In the past five years, the commitments undertaken by foreign companies in Israel have totaled about $3 billion. The fulfillment carried out by foreign companies, have in fact totaled the amount of about $13 billion. The significance of that is 20,000 jobs employment and layoffs prevention, in each of the five years.
The ICA at the Ministry of Industry, Trade and Labor is in charge of managing all Industrial Cooperation activities in the State of Israel. The ICA acts therefore to initiate, monitor, control and coordinate industrial cooperation activities stemming from Industrial Cooperation commitments of foreign companies in Israel. |
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| | | | | | On November 22, 2012, ABB Inc. will hold an Israeli Technology Day in Zurich, Switzerland | On November 22, 2012, ABB Inc. will hold an Israeli Technology Day
in Zurich, Switzerland
ABB is a multi-national corporation with a global leadership in power and automation technologies. ABB is a publicly owned company with head office in Switzerland. The ABB Group operates in more than 100 countries and employs about 145,000 people with total revenues of $38 billion in 2011. The group was formed in 1988, merger of Swiss and Swedish engineering companies, both founded in late 19th century. ABB has leading market positions in diversified businesses, and its portfolio covers: Electricals, Automation, Controls and Instrumentation for Power Generation and Industrial Processes; Power Transmission; Distribution Solutions; Low-Voltage Products; Motors and Drives; Intelligent Building Systems and Robots and Robot Systems.
ABB is interested in meeting with innovative Israeli companies for potential joint cooperation or investment with the following:
1. Companies / Start-Ups that have already developed a product or a service in the first version, also beta, which are interested in a trial with ABB team in the fields of:
§ Water Technology
§ Energy – distributed generation related products (for micro grids such as energy storage technologies), sensor technologies, renewable sectors of solar & wind.
§ Cyber Security
§ General Security - access control, surveillance, physical security, personnel security
§ Industrial Automation
2. Technological Companies / Start-Ups which can offer components of services to integrate with existing ABB products in the respective fields mentioned in point 1 above.
3. Early Stage Companies / Start-Ups looking for investment in the respective fields mentioned in point 1 above.
If you believe you fit to this description, please email contact@il.abb.com noam.bargal@ocs.moital.gov.il and gabriel.golomb@moital.gov.il by 14 September 2012 a proposal that will comprise your: (a) Company Name + Company Website; (b) Company Profile (up to 1 page); (c) Brief Statement of Relevance (up to 1 page); and (d) Contact Person Details.
We are looking forward to get your proposal in the requested format and will let you know if it fits ABB scope of interest.
Thank you!
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Within the framework of its Industrial Cooperation commitments in Israel, ABB expands and deepens its activities and invests in two Israeli companies – TaKaDu and Pentalum (April 2012) | |
Within the framework of its Industrial Cooperation commitments in Israel, ABB expands and deepens its activities and invests in two Israeli companies – TaKaDu and Pentalum (April 2012)
Adv. Bina Bar-On, Director General of ICA, expressed satisfaction with ABB's activities to fulfill its Industrial Cooperation commitments in Israel
ABB announced its decision to invest in TaKaDu, a provider of advanced monitoring solutions for water distribution networks and in PENTALUM, a VC funded company, providing advanced wind sensing technology for control and optimization of wind turbines and wind farms. The investments were led by ABB Technology Ventures, ABB's venture capital arm in order to increase its involvement and activities in Israel.
This comes as part of ABB's Industrial Cooperation activities in Israel.
Adv. Bina Bar-On, Director-General of the ICA, said: "ABB's extensive activities in Israel in accordance with its umbrella industrial cooperation agreement, has resulted in long-term benefits for the Israeli economy, the Israeli industry, Israeli research and development, and for ABB itself."
The investment in TaKaDu gives ABB access to a field-proven monitoring system that complements its automation portfolio for the water sector. This includes a range of power and automation products and integrated solutions that allow customers to produce, transport, distribute, treat and utilize water efficiently, reducing energy consumption, minimizing losses and improving reliability.
"TaKaDu's innovative solutions enables commercial water network operators to monitor their distribution networks efficiently and reduces losses" said Franz-Josef Mengede, head of ABB's Power Generation business within the company's Power Systems division. "Water is a key focus area for ABB and this investment will further strengthen our power and automation offering for the sector".
"This strategic investment will facilitate marketing and technical synergies with ABB, a global leader, and help us to purse our vision of making water networks smarter through advanced technology" said Amir Peleg, Founder and CEO of TaKaDu. "TaKaDu's innovation in the water space is a great match to ABB's market position and approach."
Pentalum was established in 2009 with the aim of developing the SpiDAR, a revolutionary, cost effective, patent pending wind LiDAR (Light Detection and Ranging) system, for remote sensing of wind, providing a wind measuring solution to all three major wind energy applications: Wind resource assessment, Wind farm operation optimization and Wind forecasting.
The innovative LIDAR technology remotely senses the wind vector in front of wind turbines in order to optimally align them to incoming wind flow.
Pentalum's system is also applicable to wind forecasting and site assessment, and is designed to significantly increase wind farm efficiency at a lower cost per site than existing measurement technologies.
Pentalum's system will become part of ABB's wide range of products, integrated solutions and expertise, enabling the efficient generation of wind power and its smooth integration into the grid.
Gabriel Golomb, Deputy Director General of the ICA notes that "We are very proud that ABB decided to upgrade our excellent industrial cooperation relations, which exist for many years, by investing in innovative industries with cutting edge technological products for the mutual benefit of all the parties." |
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$2.5 billion – 20% More Than in 2010 – This is the Result of the Industrial Cooperation activities carried out By Foreign Companies with 541 Israeli Enterprises and Businesses in 2011 (Apr. 2012). | |
$2.5 billion – 20% More Than in 2010 – This is the Result of the Industrial Cooperation activities carried out By Foreign Companies with 541 Israeli Enterprises and Businesses in 2011 (Apr. 2012).
The Industrial Cooperation Authority (ICA) presented the Minister of Industry, Trade and Labor the results of the authority's 2011 Industrial Cooperation activities.
Minister Shalom Simhon: The significance of these activities is the maintenance and creation of 20,000 jobs, with a large portion in traditional industries in the periphery.
ICA Director General Bina Bar-On added that in 2011 new Industrial Cooperation commitments worth $917 million were recorded, a rise of 30% over 2010.
In 2011, 541 Israeli enterprises benefitted from business deals with foreign companies as part of their Industrial Cooperation commitments. These deals were reflected in orders for systems, components and parts produced domestically, technology and know-how transfer, R&D investments and more.
$710 million worth of these deals were directed towards the periphery, benefitting 90 enterprises. Small and Medium Businesses (SMBs) (of up to 100 employees) accounted for 30% of the overall number of enterprises that enjoyed Industrial Cooperation transactions. The volume of orders they received in 2011 amounted to $212 million.
44 of these Israeli industries were each awarded transactions worth $10 million, and over 30 enterprises were awarded with transactions worth between $5 million and $10 million. 124 Enterprises were awarded deals worth between $1 million and $5 million, 63 enterprises were awarded deals between $500,000 and $1 million, and 280 enterprises were awarded deals worth of up to $500,000.
These figures were given to the Minister of Industry, Trade and Labor, Mr. Shalom Simhon as part of a summary of the ICA's activities in 2011. The number of foreign companies having Industrial Cooperation Agreements with the ICA in 2011 was 174, of which 71 have Umbrella long-term Agreements.
The Minister of Industry, Trade and Labor, Mr. Shalom Simhon said that the figures are encouraging and are of great importance because of the positive impact that Industrial Cooperation activities of foreign companies have on Israeli employment. "For a new job or preserving an existing job in a traditional industry for one year requires an order of $100-120,000. The significance of Industrial Cooperation activities worth $2.5 billion is the creation of about 20,000 jobs in Israeli industry, a substantial part of them in the periphery. These are good news from an economic and social standpoint for the Israeli economy, on top of the professional know-how gained in Israel, employees and enterprises qualification to comply with required disciplines, and investment in R&D.
In the wake of ICA's policy of encouraging foreign companies to form contacts with new Israeli suppliers, 159 new Israeli industries benefited this year from Industrial Cooperation activities worth an overall $184 million.
Most of Industrial Cooperation activities, carried out in Israel by foreign companies, were this year in the areas of; computers, communications and electronics (25%), aerospace and metal industry (14%), engineering and infrastructures (10%), software, biotech and medical equipment (8% each), railways and automotive sector (5%).
Ms. Bina Bar-On, ICA Director General added that an especially interesting figure was, that about 30% of foreign, Industrial Cooperation committed companies, even after their commitment has been fully accomplished, continued their Industrial Cooperation activities by purchasing Israeli products, services and investing in Israel, since they found in Israel, with ICA's assistance, quality and competitive business partners and suppliers. The volume of the surplus activity carried out by these companies has totaled $8 billion over the past ten years.
2011 Highlights
· A major success was recorded in negotiations conducted by the State of Israel related to the new Government Procurement Agreement (GPA), in which it was approved that Israel is entitled to require Industrial Cooperation in civil procurements, for another 15 years as of the day of the agreement's ratification.
· Intel committed to carry out Industrial Cooperation worth $300 million following the last Government grant it was awarded with. In one year, the company implemented Industrial Cooperation activities in Israel worth $628 million while authorizing dozens of new suppliers.
· Bombardier has allocated industrial activities to Dimona to a factory with over 70 employees. Bombardier chose Paltechnica (which manufactures seats for railway carriages) and Karmocrome (which manufactures stairs for carriages), as preferred suppliers in tenders that the company competes in Germany and India.
· As part of its activities for the advancement of the country's armored vehicles industry, three conferences were held in Israel by the US Company GL-DS, as required by the ICA. Recently, eight of its executives visited more than 60 industries in Israel.
· Outgoing delegations: Israeli suppliers in the railway sector visited Siemens Company in Austria.
· Incoming delegations: Hyundai, Ford, Navistar, Elgin Sweepers, MTU, ABB, GDLS.
· Ford is working to set up a Development Center in continuation of its Industrial Cooperation activities in Israel.
· The Korean companies Doosan and Daewoo became involved in Israel's energy sector and implemented Industrial Cooperation activities in Israel amounting over $90.
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| |  | | | Ford Motor Co. to increase involvement and activities in Israel; Two consultants appointed to assist in locating and selecting technology and R&D entities, in continuation of the company's Industrial Cooperation activities in Israel (March 2012) | |
Ford Motor Co. to increase involvement and activities in Israel; Two consultants appointed to assist in locating and selecting technology and R&D entities, in continuation of the company's Industrial Cooperation activities in Israel (March 2012)
Ford Motor Co. announced that it has appointed two consultants in Israel - both are experts in locating companies - that will survey the industry and technological companies in order to increase its involvement and activities in Israel. This comes in the wake of Ford's Industrial Cooperation activities in Israel. The two experts, Ronen Keinan and Zeev Aley-Raz, are currently taking up their appointments and over the next two years will survey and classify some 1,200 Israeli technological companies and R&D centers of various sizes and range of activities.
Ford's announcement follows a pledge given at the end of 2011 during a visit to Israel by a delegation headed by Mr. James Buczkowski, Henry Ford Technical Fellow & Director Electrical and Electronics Systems Research and Advanced Engineering at an event organized by the Israel Export and International Cooperation Institute and the Ministry of Industry, Trade and Labor's Industrial Cooperation Authority (ICA).
Ford Motor Co.'s Israel representative Dan Bialick said "Israel is in the forefront of technological progress and we want to leverage these advanced Israeli resources and integrate them into Ford's future products. In the past four years, the company has focused on the development and installation of advanced technological systems, especially in the area of vehicle IT and communications. We are witnessing a growing interest taken by international carmakers and their subcontractors in unique Israeli technologies and Ford is interested in them as well."
ICA director-general Bina Bar-On said that ICA's policy requires Israeli industries, wishing to participate in a share of the work and business received from overseas companies having Industrial Cooperation obligations, to be competitive in quality, price and delivery terms, the only way to prove their long-term advantages again and again.
Next week Ronen Keinan and Zeev Aley-Raz will meet Ford engineers in the US for an update on Ford's development programs. On behalf of the Ford Company, Matthias Duex, a leading expert in casting suppliers' qualification will be in Israel to visit 11 companies engaged in the casting of plastics, aluminum and magnesium. The visit was prepared by Ford's Industrial Cooperation Coordinator, Yossi Porat and ICA's Automotive Industries Director, Zvi Leshem. Both will accompany the guest during his stay in Israel.
Ronen Keinan has 30 years of experience in management, marketing, and business development with both young and well-established companies in Israel and the US in the technological field and other companies in the communications, software and Internet, industrial automation, defense and other sectors. Ronen Keinan is familiar with dozens of technological companies, investors, and bodies in the technological field in Israel and overseas.
Zeev Aley-Raz gained extensive experience during his service in the Israel Air Force in the field of high risk R&D and subsequently in the private sector in management, marketing and business development with both young and well-established companies in senior positions in Israel and the US in the technological field and other companies in the communications, software and Internet, industrial automation, defense and other sectors. Zeev Eli-Raz is familiar with dozens of technological companies, investors, and bodies in the technological field in Israel and overseas.
It should be stressed that Ford, has had decades of business and Industrial Cooperation contacts with many Israeli companies and manufacturers in such areas as software, plastics, aluminum and magnesium castings, measuring equipment and devices, cutting tools, protection solutions, valves, thermostats, and car accidents prevention. Since Y2000, Ford has fulfilled Industrial Cooperation obligations totaling millions of dollars through contracts with 23 Israeli companies including: Technomatix; Tadir-Gan; Cognitens; Alex Original; MobilEye; Raval; Iscar; Ortal; Check Point; Enigma; Raviv; Arkal and others. |
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| |  | | | After fighting in Gaza and Lebanon, the Merkava tank has now gone to war over its future – in the Knesset, Feb. 2012 | |
After fighting in Gaza and Lebanon, the Merkava tank has now gone to war over its future – in the Knesset, Feb. 2012
(Unofficial translation of an article which appeared in Globes, 28 Feb. 2012)
Yuval Azulai
310 million Dollars. This is the total amount of exports in products and services attributable to the Merkava tank project in 2011. Defense industry sources say that sales revenue will be similar this year as well.
The Merkava has also gained operational success. In the Second Intifada, on the Gaza front the tank coped with powerful explosives. On the Lebanon front, the tank overcame Russian anti-tank missiles fired by Hezbollah, thanks to theTrophy Missile Defense System provided by Rafael. Now the tank has gone to battle over its future – no defense industry has yet developed a system that can intercept budget cuts.
Whether we are talking about genuine intentions or media spin to put the Ministry of Finance under pressure, there are substantial hardships on the ground. Factories responsible for manufacturing components and parts related to the Merkava have not been receiving orders for months and the Manufacturers Association believes that hundreds of employees will be fired.
The first round of fighting took place several weeks ago in the Knesset's Foreign Affairs and Defense Committee. Committee chairman Member of Knesset Mr. Shaul Mofaz declared that the Israel Defense Forces needs the Merkava and nobody will be turning out the lights in the hangars at Tel Hashomer's renovation and maintenance center, where dozens of tanks are produced each year.
Yesterday it was the turn of Member of Knesset Ms. Ronit Tirosh who convened a special session of the Knesset's Science Committee to discuss the ramifications of cancelling the project.
Technological engine
The Defense Ministry presents the Merkava project as a "technological engine" of the defense industries. Senior ministry officials say that the tank serves as a platform for many technologies and long term R&D that was designed to improve its battlefield performance, lead to a wide range of products that on the surface would seem to have no connection to the tank.
This includes dozens of components with civilian uses in such areas as medicine and transportation. Operational performance requirements of the Armor Corps have sped up in recent years the race between the defense industries that ended in the development of the Trophy Missile Defense System.
If we are not talking about a spin and this is the swansong of the Merkava, then somebody will need to take care of about 200 researchers, 500 engineers and over a 1,000 technicians who are the "human capital" responsible for the development and manufacturing of the Merkava tank.
The many industries in Israel that might be in real trouble due to the MERKAVA project termination may try and find some comfort in the special delegation from General Dynamics, the US company that won the MOD contract for the manufacturing of the NAMER hull, that is currently visiting Israel.
Under the terms of this transaction, Israel will be equipped with parts and components which will be procured from this company with US Foreign Military Funds (FMF). Following the contract award, GD is expected to implement Industrial Cooperation programs with the Israeli industry. The a.m. delegation, totaling 8 high ranked executives from the US Company are about to visit 60 Israeli industries from all over the country, to examine their technological capabilities, quality standards and above all their seriousness.
The Industrial Cooperation Authority's Director General Ms. Bina Bar-On said to GLOBES: "Among the industries to be visited by this delegation are companies that were impacted by the transfer of the NAMER project to the US, many of them SME's located in peripheral areas of the country". Ms. Bar-On added: "There are still difficulties in concluding sizable business agreements with the Israeli industries. I appreciate however the efforts invested by the American company to carry out its commitment for Industrial Cooperation in Israel". |
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| |  | | | Elbit Systems has Exported Over $1 billion Due to Industrial Cooperation Activities of Foreign Companies in Israel (22 Jan. 2012) | |
Elbit Systems has Exported Over $1 billion Due to Industrial Cooperation Activities of Foreign Companies in Israel (22 Jan. 2012)
Minister of Industry, Trade and Labor Shalom Simhon has visited Elbit Systems' headquarters in Haifa. Elbit's President Joseph Ackerman presented the minister with the details of the company's cooperation with the various arms of the Ministry of Industry, Trade and Labor. In his words, Elbit has over the past decade exported more than $1 billion to companies with Industrial Cooperation commitments with the industrial Cooperation Authority (ICA). That scale of industrial exports, he said, means about 1,000 jobs. Over the past year alone, Elbit sold about $125 million worth of products to several companies with Industrial Cooperation commitments.
Simhon called on Elbit's President to continue expanding the company's activities in the periphery and to direct future growth of the company to the Galilee or the Negev. Elbit currently has about 2,500 employees in the periphery, from Tel Hai and Kiryat Shmona in the Upper Galilee to Sderot in the south, and is one of the country's largest employers in the north. Simhon proposed that the Elbit president plan together with him and examine how the Ministry of industry, Trade and Labor can assist the company in increasing its strength in these regions where the government is interested in expanding development and the impact of economic growth. Ackerman replied that he will meet the challenge and intensify the company's activities in these regions.
Ackerman made clear that Elbit's success and ability to be ahead off its rivals in the market, depends to a great extent on the assistance from the Office of the Chief Scientist (OCS) at the Ministry of Industry, Trade and Labor. In his words, Elbit's global leadership in Helmets Mounted Systems has been made possible, among other things, by OCS support in the early stage of development. Ackerman also mentioned the major contribution of the Investment Center to the company's success.
Ackerman called on the Minister to increase the R&D budget and offer preferential conditions for projects that provide the highest returns for the economy in terms of jobs.
Elbit mainly rests on the ability to receive insurance coverage for foreign trade deals from the government's Ashra - The Israel Foreign Trade Risks Insurance Corporation Ltd. The company has so far insured export deals worth more than $1 billion and this allowed Elbit to win strategic deals. According to Ackerman, increasing credit lines and Ashra's support for exporters, especially at the present time of weakened global stability, will enable Israeli companies to better compete with their rivals.
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Industry Conference in Association with General Dynamics Land Systems – GDLS (17 Jan. 2012) | |
Industry Conference in Association with General Dynamics Land Systems – GDLS
(17 Jan. 2012)
As part of the promotional activities for the advancement of Industrial Cooperation between General Dynamics Land Systems (the American company who was awarded with the manufacture of the Namer by the Ministry of Defense at the beginning of 2011) and the Israeli industries, GDLS accepted ICA's proposal to hold a conference, under the auspices of the Manufacturers Association in Israel, with the participation of marketing and Industrial Cooperation executives of the GDLS company and the Israeli industry.
Mrs. Bina Bar-On, Director General, ICA
At the beginning of 2011, GDLS was awarded the MOD tender to manufacture the Namer in the US. Following the award, GDLS made a commitment to carry out Industrial Cooperation in Israel, in excess of $160M. In order to expose GDLS to the Israeli industry and implement GDLS commitments, the ICA, together with the Manufacturers Association, initiated a conference for the benefit of major Israeli industries that have been impacted by the Namer project activities being transferred to the US. Key representatives from GDLS have answered questions raised by the ICA, Manufacturers Association representatives, and Israeli companies. It was a unique conference focused on helping Israeli industries to successfully respond to business opportunities offered by GDLS. It has highlight business opportunities in the range of tens of millions of shekels which can lead to continual business activities for many of the armored vehicle industries in Israel.
Mr. Yehuda Heiman, Vice President, Manufacturers Association
I welcome the cooperation of GDLS with the ICA and the Manufacturers Association.
The conference was a catalyst for increasing the business opportunities standing before many Israeli industries represented by the Manufacturers Association Forum.
It has been a professional conference, where the parties have outlined all the requirements for creating a business environment and mutual understanding of the counterparty's needs, in order to be an active link in the supply system of GDLS.
We anticipate that in 2012, purchase orders in scopes of tens of millions of shekels will be placed and hope that this volume of sales will continue in subsequent years.
General Dynamics Land Systems is a leading manufacturer of wheeled, tracked and amphibious combat vehicles, offering a spectrum of design, production and lifecycle support to customers worldwide. Its portfolio of vehicle platforms includes the Stryker and LAV families of wheeled combat vehicles, the Abrams main battle tank and the MRAP class of tactical vehicles. The company employs world-class manufacturing and systems-integration processes to develop vehicles designed to meet current and future ground-combat requirements. GDLS expects its Industrial Cooperation plan to benefit the Israeli companies impacted by the transfer of project operations to the US.
The ICA is the department in the Ministry of Industry, Trade & Labor responsible for Industrial Cooperation carried out in Israel. Foreign companies, with whom Government Ministries and other public entities make contact, commit to carrying out Industrial Cooperation in Israel – an activity that yields billions of dollars for the Israeli economy every year.
This conference was an example of how Industrial Cooperation can protect the business activities in Israel in situations where the main activity has been transferred to another country. The ICA is working to open doors to business opportunities for the Israeli industry, protects jobs and is contributing to the Israeli economy.
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