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)

$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.

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.

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.

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.

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.

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.

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.

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.