Israel Aerospace Industries (IAI) has announced an agreement worth $1 billion over five years with an unnamed third party. The company expects completion of the deal by 2029 and IAI and said that it would provide surety of a changing amount to the customer according to progress in the work, implementation and guarantees.
"Globes" has also learned that IAI chairman Amir Peretz was seen boarding a flight to Morocco. The company said, "We do not comment on the travels of the chairman."
The latest $1 billion deal comes after the historic sale of the Arrow 3 air defense system to Germany for $3.5 billion last year. The record deal broke the previous IAI record of a $1.6 billion sales of a Barak 8 system to India in 2017. IAI is committed to provide Germany with its first Arrow 3 system next year and overall systems to cover the entire country by 2030.
In addition to the sale of the Arrow 3 system, another impressive deal recently signed was by Rafael Advanced Defense Systems, which will provide Finland with the David's Sling air defense system for €316 million. While the Arrow 3 system is designed to intercept ballistic missiles in space, outside the atmosphere, the David's Sling intercepts medium-long range rockets and missiles as well as cruise missiles. As has been illustrated in the current war, Israel's multi-layered air defense capability is of great importance, with IAI's Arrow 3 and Arrow 2 covering long range threats, and David's Sling and Rafael's Iron Dome covering medium and short range threats.
This latest IAI deal illustrates the position of the major defense companies regarding the influence of Israel's geopolitical status on the industry. Although the banning of Israeli companies from the prestigious Eurosatory defense exhibition in France was a tough marketing blow, Israeli products are still in high demand. This is due to two main reasons: first and foremost Israeli technologies are at the highest level in the world, and secondly Israeli products are proven on the battlefield. Israeli products like Rafael's Trophy defense system for tanks measures have proven their value to customers and the reliability of the products by protecting the IDF's Merkava 4 in Gaza from anti-tank missiles.
Published by Globes, Israel business news - en.globes.co.il - on July 9, 2024.
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