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Elbit Responds to Point Trading Press Release

On September 8th we ran a press release from Point Trading discussing a contract dispute they have with Elbit Systems of Israel. Elbit Systems contracted us and asked to run the following comment about the issue:

“Point Trading breached its commitment to ITL (which has since been acquired by Elbit Systems), and to this day has not paid its undeniable debt of over USD 1 million to ITL. Elbit Systems received the statement of claim and is studying it, though it appears from an initial review of the claim that it does not raise any issue that has not been discussed previously.”

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Turkey To Go Ahead With Israeli UAV Deal

The Turkish Government announced yesterday that they are willing to take delivery of six of the ten Unmanned Air Vehicles (UAV) reconnaissance systems purchased from Israeli companies. The six systems passed performance tests and this will allow Israel to ship them to Turkey. Another four systems that were part of the contract will have to pass similar tests to be delivered.

Israel has been progressively trying to sell equipment to foreign customers and has had some success with Turkey and India. This contract was let five years ago and was a major coup for Elbit and Israel Aerospace Industries (IAI) when they won it. Some development issues have led to the long delivery period. Israel’s defense establishment hopes to garner further sales of such equipment as these UAV demonstrate their capabilities for Turkey.

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Navistar Continues Foreign Sales Of Systems

January 6, 2010 by · Comment
Filed under: BNET, Syndicated Industry News 

Navistar announced that it has been able to sell tactical vehicles to Israel. Despite not winning the U.S. MRAP-ATV contract these kind of sales…

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Israel To Buy The F-35 If Their Conditions Met

Israel would like to buy the F-35 Joint Strike Fighter (JSF) to add modern, stealthy aircraft to its fleet of F-15 and F1-6 aircraft. As with the previous generation of United States aircraft they would also like the ability to integrate their own electronics and weapon systems on it. The Israelis have done this with all the weapons they have bought or captured over the years.

They rely on their own sophisticated defense industry to develop systems that they would like to put on the various platforms that they operate. The U.S. has resisted the Israeli requests in a bid to protect the technology and systems developed for the F-35. The Israelis have been negotiating this issue for several months and have won most of what they want but the desire to put their own electronic warfare system has things stymied. The U.S. will allow radar and weapons to be added but do not want to open the software at that level to Israel.

The contract could be for up to seventy-five aircraft total making Israel one of the largest purchasers and would certainly help the program facing budget issues and delays. The more that the U.S. is able to sell overseas the lower the average price of an aircraft will be. It behooves the U.S., Lockheed Martin and Israel to work out some sort of deal as the advanced capability of this aircraft will only help Israel in the future.

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Israel Buying Armored Trucks In The U.S.

Arotech Corporation of Michigan reported their recent quarterly earnings. The company still performed at a loss but compared to the same quarter last year saw strong improvement. The company almost halved its loss from $1.9 million to $1 million on revenues that were up almost $3.5 million.

One of the prime reasons for this growth in revenues was the sale of armored trucks, the David, to Israel. The company also makes simulators and armored plate for the military market as well as some commercial products. It’s subsidiary, MDT Armor Corp, makes the David in Alabama.

Israel like the U.S. and its allies in Afghanistan and Iraq faces a significant mine and Improvised Explosive Device (IED) threat. The provision of a armored truck makes sense as they must move supplies and troops by road along dangerous borders with the Gaza Strip or West Bank. The David is considered an “ultra light armored personnel carrier” that can defeat small arms and grenades as well as lighter IED attacks. The market for these kinds of vehicles is fairly significant as they can be used for internal security missions as well as light combat duty.

Unfortunately there are many parts of the world where military and police face these kind of threats from terrorist and insurgent groups. The David is one of several kinds of vehicles that would be useful in these kind of situations to move small groups of troops or supplies.

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Egypt To Upgrade Their M1 Tank Fleet

The Egyptian Government moved to buy equipment to upgrade their M1 tank manufacturing line. The tank has been produced their under agreement with the U.S. and General Dynamics. GD signed a contract worth about $45 million to provide the tools, gauges, fixtures and machine tools. This will allow the line to produce an upgraded variant of the tank.

The U.S. has been providing Egypt with significant amounts of modern equipment as part of the aid promised once they signed the peace agreement with Israel. This has extended to aircraft, radars, vehicles and other hardware. There has also been training, maintenance and production help. Prior to this the Egyptians relied on Soviet designed and made equipment as they fought the four wars with Israel between 1948 and 1973.

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Australia Reportedly To Buy F-35

Two days after the roll out of their first F/A-18 aircraft necessary to provide an interim air capability until the nation moves out on its fifth generation buy of either the F-35 JSF or the F-22 Raptor the Government announced that they would invest in the F-35. While the F-22 was attractive due to its longer range and greater payload up to seventy F-35 aircraft will be purchased.

Australia plans to now review their defense procurement plans every four years and readjust as necessary. Australia has been a partner in the F-35 development effort but recently had looked at buying the F-22. This would require an act of Congress as current law bans the sale of the modern aircraft. Japan and Israel have also inquired about the availability of the F-22. With the Obama Administration planning on ending procurement of the F-22 foriegn sales are now attractive to Congress as a way to keep production going.

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Israel Procures New Trainer Aircraft

The Israeli Air Force has procured Beechcraft T-6 trainers. These will replace the old Fouga Magistar aircraft used for the last several decades to start the training of Israeli pilots. The Israeli defense contractor Elbit Systems was awarded a contract to provide for the support of these new aircraft.

These two events mirror a trend in the U.S. and England where the trainers used are turbo-prop rather then jets. The use of Contractor Logistics Support (CLS) for training fleets has also gained ground in these two countries. This is because you have a fixed fleet in a non-combat location. There are many benefits to CLS in the areas of cost and reduction in the support tail. Israel has used Elbit for support of training systems for the last seven years. Elbit hopes like all defense contractors to be able to use this experience to win contracts overseas.

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Israel Moves Out On F-35

It is being reported that the U.S. and Israel have come to an agreement on the purchase of the JSF by that country. There had been some rumors in the past that Israel would not be able to get the advanced fighter due to demands that they be allowed to modify the technology with their own. Israel commonly modifies their equipment with indigenous produced systems and weapons.

The initial buy will be for twenty-five aircraft and expected delivery is sometime in 2014. Congress must still approve the request but normally has no issues with sales to Israel of U.S. weapon systems.

Over the last twenty years the U.S. has placed more-and-more restrictions on technology transfers to other countries with worries that the technology sold will end up in unapproved hands. There are often restrictions on what the buyers can do or access with their systems. Israel’s history of modifying and using the foriegn technology they purchase may have caused second thoughts about selling to them although they have been involved with the JSF since almost program inception.

The JSF will be used by a variety of countries across the globe as it is designed as a replacement for the F-16 and is the only modern U.S. aircraft available for export. Australia and Japan are in discussions with the U.S. about buying F-22 as they would like an aircraft with longer range among other things. Right now the sale of the F-22 is prohibited by law but some in Congress are looking at changing that to keep the production going.

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India Releases Helicopter Requests For Proposals

India has released this week two separate Requests for Proposals (RFP) for new helicopters. The first one is to purchase twenty-two advanced attack helicopters. The second for fifteen heavy lift aircraft. India faces many of the same problems that the Allied forces in Afghanistan do because of the high, hot environments that aircraft must fly in.

The country had released a RFP last year for attack helicopters but withdrew after receiving non-responsive bids. India has looked at major upgrades to its armed forces by broadening the base of whom they buy from. Rather then relying primarily on Russian or British equipment Israel and the United States have begun to make inroads into the market. India also had invested heavily in domestic development and production but to get more technology faster has started buying overseas in greater amounts.

With the new proposals Boeing is considering a bid for each. They make the AH-64 Apache and CH-47 Chinook both heavily used in Afghanistan by the U.S. and Allies. Boeing is also looking at taking major hits in the Obama budget and will try to counter that with sales overseas.

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India Rejects Rafale For New Fighter

Update — Flight International is reporting that India says it has not ruled out any competitor in the program.

The Indian Air Force is looking to purchase an advanced fighter to add to their inventory. Six foreign companies had submitted bids for the 126 aircraft order. Now word comes that the French proposed Dassault Rafale was eliminated from the competition. The Indianexpress.com reports that publicly it was stated the aircraft did not meet certain “qualitative” requirements. It was also said that the proposal submitted showed the aircraft did not meet some of the technical requirements for the program. This means that the contest will continue with Boeing, Lockheed Martin, SAAB, MiG and Eurofighter participation for now.

The deal is one of several that India is proceeding with in an attempt to upgrade the technical capability of their armed forces. In the past the country had tended to buy from Russia or England. India has also spent the last several years developing an indigenous arms industry. Although lately they have turned to outside sources to include Israel and the U.S. for advanced weapons.

Currently there are several nations looking at buying advanced fighters. The Rafale has not been bid for many as most of the competition has been between the F/A-18G, SAAB Gripen, F-35 JSF and the Eurofighter Typhoon. The Indian contract is certainly one of the largest percolating.

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US announces Israeli JSF buy

The US Department of Defense announced that Israel has agreed to buy 25 F-35 Joint Strike Fighters (JSF) and support. The contract is worth about $15 B. While eight partner countries will also fly the JSF, Israel becomes the first FMS customer. The JSF will be a short take-off and landing aircraft to replace F-16 and AV-8 aircraft.

See the story at Rueters.com.

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Israel passes Britain to become fourth largest defense exporting country

May 30, 2008 by · Comment
Filed under: FMS, Israel 

According to this article in 2007 Israel passed Britain to become the fourth largest defense exporting country. They follow the US, Russia and France now. The two biggest customers are the US and India. The recent win of the Indian AWACS contract, reported here, had a great deal to do with that. The Israeli government and industry have made major strides in recent times increasing their exports rather then just focusing on domestic needs.

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Japan to modernize E-2C aircraft

Northrop-Grumman received a contract worth $37 M to upgrade Japan’s E-2C aircraft. See an article here. Originally a carrier based Airborne Warning and Control System (AWACS); several countries like Egypt, Israel, Singapore and Japan have bought it to base on land and use in their restricted airspace.

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Navistar Defense Wins Foreign Military Sale from Israel

WARRENVILLE, Ill.--(BUSINESS WIRE)--Navistar Defense, LLC today announced that it has made a new foreign military sale to the Israel Ministry of Defense. Under the $12 million contract, Navistar will deliver 114 medium tactical vehicles by June 2010. In addition to the Israel contract, the company also received a second four-year, System Technical Support (STS) contract for up to $78 million to support its International® MaxxPro® Mine Resistant Ambush Protected (MRAP) vehicles. “

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Friends of the Israel Defense Forces (FIDF) Invite Haitian Community Leaders to the 2010 FIDF Solidarity Dinner on March 11, 2010

MIAMI--(BUSINESS WIRE)--Friends of the Israel Defense Forces (FIDF) invite Hatian Community Leaders to the 2010 Solidarity Dinner on March 11, 2010

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