TEL AVIV, Israel, June 24, 2020 – Boeing [NYSE: BA] strengthened the Israeli aerospace industry by nearly US$1 billion (3.5 billion Israeli shekels) in the last three years thanks to multiple cooperation projects with Israeli companies according to the latest data from the Israeli Foreign Investments and Industrial Cooperation Authority (ICA), Ministry of Economy and Industry.
In 2018, as part of an umbrella agreement with the Israel Ministry of Economy, Boeing committed to a long-term strategy for developing Israel’s aerospace industry. The company agreed to direct at least 35 percent of the contract value from Israeli government defense procurements to Israel-based companies and suppliers.
“This agreement is definitely an opportunity, a vote of confidence, especially these days and a declaration of intent by a leading international business corporation in the capabilities of the local Israeli industry and its products,” said Ziva Eger, ICA chief executive. “By nurturing strategic partnerships such as these, we will continue to promote the Israeli economy forward.”
“This news from the ICA that Boeing helped strengthen the Israeli aerospace sector by US$1 billion in just three years is impressive but not surprising,” said Maria Laine, Boeing vice president, International Strategic Partnerships. “Boeing’s partnership with Israel extends more than seven decades and the country has a robust and capable industry that can provide global support to both defense and commercial businesses.”
The agreement is also a testament to the ICA’s commitment to bridge the gap between small and medium-sized (SME) businesses and multinational corporations. Laine noted that Boeing also worked in coordination and cooperation with the Production and Procurement Directorate of the Ministry of Defense, as well with the Manufacturers’ Association of Israel to train and develop SMEs on the path to becoming Boeing suppliers. Boeing has assessed and provided training to over 60 Israeli SMEs.
Recent examples include:
- Israel Aerospace Industries major structures work for the F-15 program; avionics and spare parts for the V-22 Osprey, the T-38 Talon and T-45 Goshawk;
- Elbit Systems providing sensors, processors and displays on many Boeing platforms, including the helmet mounted display, DIRCM systems and the electronic warfare suite for the H-47 Chinook;
- Key contracts and expertise sharing with small and medium Israeli suppliers, among them RADA Electronics Industries Ltd., Sapphire, Ashot Ashkelon Industries, TAT Technologies Group, and BAZ Airborne.
- Innovative and development projects with small companies such as ALGOLiON and Assembrix.
The considerable investment in Israel’s aerospace industry by both the Israeli government and Boeing has and will continue to serve as an accelerator of growth in the country, and a bedrock for commercial and military customers and suppliers to develop lasting partnerships.
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