Israel Aircraft Industries/Elta and Koor/Tatiran Establish A Joint Venture For Marketing Electronic Defense Systems
Jul 28, 1999
Elta and Koor/Tatiran Establish A Joint Venture For Marketing Electronic Defense Systems
The Board of Directors of Israel Aircraft Industries approved in its meeting today a memorandum understanding regarding the establishment of a joint venture between its subsidiary ELTA Ltd. and Tadiran/Elisra for the marketing of electronic defense systems. The Board of Directors praised the Companys management on it initiative and efforts which brought about the memorandum.
The objective of the cooperation is to consolidate the capabilities of both sides and to enhance the value of the knowledge and infrastructure they possess, by reducing competition between the companies and expanding the scope of business and profitability. The initiative is the continuation and expansion of a cooperative agreement, which was signed in the past between ELTA and Elisra.
According to the agreement, during the first stage, the joint venture will focus on marketing, and the companies will compete on bids in Israel and abroad together. At the same time, the companies will work together on preparation of a long-term business plan, which will incorporate selected additional activities into the joint venture.
With approval of the plan, and within the framework of the joint venture, the companies will establish a jointly-owned company. The new company will guide the activities of the two companies in establishing contracts with various customers in Israel and abroad, and will consolidate the activities between them.
Moshe Keret, President of Israel Aircraft Industries, warmly acknowledged the collaboration between the two corporations. Israel Aircraft Industries is the heart of technology and business within the Israeli defense industry. The unification of marketing efforts between ELTA and Tadiran/Elisra will provide greater advantage and strength, providing customers in Israel and abroad with points of technological and marketing excellence.
Danny Biran, President of Koor, who is also Acting Chairman of Tadiran, said that the joint venture will bring about the realization of the unique technological capabilities which are possessed by each of the companies, on one hand, and the great marketing and business potential which will be revealed through this collaboration on the other hand.
Danny Biran added that Koor will continue in its strategic policy to seek joint ventures with other defense companies with the objective of converting the Israeli defense industry to a global leader in this field.
The establishment of the venture is dependent upon the approval of the relevant authorities.
For more information, contact:
Doron Suslik
Deputy Corp VP for Communications
Tel: 972 (3) 93 5-8509
Fax: 972 (3) 935-8512
Email: hpaz@hdq.iai.co.il
|
NEWSLETTER
|
| Join the GlobalSecurity.org mailing list |
|
|
|
