First Siemens Train Rolls Out – Each Carriage Will Bring Along €3 Million Israeli Added Value (16.03.2009)

First Siemens Train Rolls Out – Each Carriage Will Bring Along €3 Million “Blue and White” Added Value (16.03.2009)

ICA Director-General Bina Bar-On: The strategic importance of the Industrial Cooperation Understanding with Siemens has major potential for cooperation with the company, which is one of the world’s largest electricity and electronics firms.

Israeli companies have been authorized by Siemens to supply products to their railway factories in Austria and the Czech Republic as well as the assembly line in Israel.

Siemens won the tender to provide Israel Railways with 87 single-floor carriages (with an option for 570 additional carriages) worth about €120 million. As part of the deal Siemens undertook Industrial Cooperation Understandings (ICUs) in Israel worth €25 million. Siemens agreed to the demand of the Industrial Cooperation Authority (ICA) to assemble carriages in Israel directly through a subcontractor.

The railway factory in Haifa that was set up by Siemens Israel to fulfill this commitment employs 80 technical professionals and has completed 67 carriages. Local workers who have been trained for the task are performing assembly of the carriage interiors. The added value for Israeli industry is €3 million for each carriage.

Siemens has also integrated local manufacturers into the production of accessories and installation systems for the carriages. These manufacturers have passed quality assurance tests and are authorized to meet Siemens standards and the required quality demands of the European railway industry.

“Blue and white” produced accessories and systems are installed in the carriages: seating, tables, windows, electricity boxes, baggage shelves and more.

Ten Israeli factories are authorized by Siemens to supply products to their factories in Austria and the Czech Republic as well as the assembly line in Israel: Paltechnica, Tamor, Oren, Lordan, Aharon Yoseph, Amit Industries, Orad, Gamatronics, Motorola Israel, Tal and Hadas.

ICA Director-General Bina Bar-On said that the strategic importance of the ICUs with Siemens has major potential for cooperation with the company, which is one of the world’s largest electricity and electronics firms.

Bar-On added that through these funds, which reach Israel from overseas companies committed to ICUs (for purchase orders from government bodies in Israel) it is possible to increase job opening, promote regional development, bring know-how to Israel, increase the number of exporters and more.

Bombardier to carry out Industrial Cooperation (IC) activities in Israel in the amount of about €53 Million (01.03.2009)

Bombardier to carry out Industrial Cooperation (IC) activities in Israel in the amount of about €53 Million (01.03.2009)

Cyclone, part of the Elbit Systems Group, has signed it’s largest-ever supply contract with the aviation division of Canadian company Bombardier. Cyclone will supply Bombardier with aircraft parts worth about €53 million over five years. Most of the parts are designated for the Global Express aircraft – a long haul executive jet.

The contract with Cyclone was signed after the Industrial Cooperation Authority (ICA) of the Ministry of Industry, Trade and Labor, took a strong stand on this matter. The ICA allowed Bombardier Aerospace (Canada) to assist its European subsidiary Bombardier Transportation in fulfilling its Industrial Cooperation commitments due to its sale of railway cars.

“We are long distance runners and our strategy has proven itself with Bombardier,” said Bina Bar-On, Director General of the ICA.

Bombardier, which supplied railway cars to Israel Railways, failed over the last four years to fulfill i its IC obligation and was summoned to a meeting with the ICA’s director general, Ms. Bar-On. Following that meeting, cooperation commenced, which led to a number of transactions with Israeli industry. According to Eran Cohen, Director of Marketing and Business Development of Bombardier Israel, “It is important for us as Israelis to promote local companies aimed at joining us in future deals on the international market“.

Yossi Daskal, President of Bombardier Israel said, “As part of the IC agreement signed between Bombardier and the ICA, over the past two years, supply contracts have been signed with Israel Aerospace Industries - Ramta Division worth about NIS 5-6 million annually, Iscar worth €1 million over the past three years, Paltechnica and Oran.”

Bar-On added, “Bombardier, as part of its Industrial Cooperation Undertaking, is implementing industrial activities in Israel in the railway sector. The company has opened up for us its aerospace division and concluded major supply contracts with Cyclone and other companies, which was a real breakthrough.”     

Hyundai Motors and ICA signed an Umbrella Industrial Cooperation Agreement (01.03.09)

Hyundai Motors and ICA signed an Umbrella Industrial Cooperation Agreement (01.03.09)

The Industrial Cooperation Authority (ICA) Director General, Ms. Bina Bar-On: “The Agreement with Hyundai Motors is the First of Many Expected Agreements with Companies in the Far East

Zvi Leshem, Director,of Industrial Cooperation in the Automotive Domain at the ICA of the Ministry of Industry, Trade and Labor: The new agreement gives prospect for increased Industrial Cooperation activities carried out by the automobile manufacturers with Israeli industry, that reached in 2008 about $200 million.

Hyundai has committed to purchases from Israel’s automotive and high-tech industries, amounting about $16 million.

Hyundai Motors signed today with the ICA a ten years agreement for Industrial Cooperation with Israel’s industry. This agreement, is the result of great efforts invested over the past year on the subject, by Hyundai’s importer the Colmobil Company and the ICA, aimed at expanding the international automobile manufacturers’ investment in Israel’s automotive industry.

Bina Bar-On, Director General of the ICA said, “The Agreement with Hyundai Motors is the first of many expected agreements with companies in the Far East that will result in a breakthrough for Israel’s automotive industry, as happened in the past after the initial Long term Industrial Cooperation Agreements were signed with automobile manufacturers in Europe and the US.”

She added, “We appreciate Hyundai’s willingness to place industrial activities in Israel and congratulate Ziv Pollak, CEO and President of Colmobil Corp., as well as Dan Ornstein, CEO Hyundai Israel and also Danny Lidai, their consultant on Industrial Cooperation on their welcome endeavors to develop industrial cooperation activities with Hyundai.

Zvi Leshem, Director of Industrial Cooperation in the Automotive domain at the ICA of the Ministry of Industry, Trade and Labor said that the new agreement gives prospect for increased Industrial Cooperation activities carried out by the automobile manufacturers with Israeli industry, that reached in 2008 about $200 million.

Leshem stressed that by signing the Agreement, Hyundai Motors joins a list of companies that enjoy the advantages of an Umbrella Agreement, by virtue of which its Industrial Cooperation commitment of about $16 million will be administrated. The commitment stems from the sale of some 6,000 Hyundai vehicles between 2004 and 2007 to the Ministry of Defense, Israel Aerospace Industries and the Government Vehicle Administration.

Israeli Airlines El Al, Arkia and Israir will be obligated to insist on Industrial Cooperation requirements (buy-back) in their purchases from foreign companies (17.2.09)

Israeli Airlines El Al, Arkia and Israir will be obligated to insist on Industrial Cooperation requirements (buy-back) in their purchases from foreign companies (17.2.09)

In a recently taken government decision, it was decided that the Airlines would implement requirements for Industrial Cooperation in Israel, wherever possible, at rates that will be agreed upon with the Industrial Cooperation Authority (ICA)

Israeli airlines will be ought to insist on Industrial Cooperation requirements  worth tens of millions of dollars annually, in return of the Government’s partaking in funding their security expenditures. Until now Israel’s three airlines – El Al, Arkia and Israir, were exempt from this obligation.

As of now, the Israeli airlines will be required to act in the same way as government companies in their purchases from foreign companies, and will need to implement requirements for Industrial Cooperation in Israel at rates that will be decided by the Industrial Cooperation Authority (ICA) of the Ministry of Industry, Trade and Labor.

The expected volume of Industrial Cooperation by foreign companies with Israeli industry following this decision is estimated at tens of millions of dollars annually. This estimate is based on the volume of Industrial Cooperation implemented by foreign companies as a result of their sales to El Al  in the decade before it was privatized, which amounted to about $570 million,.

Among the prominent foreign companies with proven Industrial Cooperation performance in Israel are Boeing and Rolls Royce with activities totaling $313 million and $196 million respectively. From these activities benefited twelve Israeli companies including; Ashot Ashkelon, Cyclone, RAFAEL, Israel Aerospace Industries, Lahavim Technologies, Tech-Jet, Iscar, El Al and Carmel Forge. The ICA estimates that the volume of Industrial Cooperation activities and purchases from the Israeli industry as part of the new decision will be similar.

Government Ministries, Authorities, Health Funds and Government Companies will be obligated to report purchases of more than $5 million to the ICA (20.11.2008)

Government Ministries, Authorities, Health Funds and Government Companies will be obligated to report purchases of more than $5 million to the ICA

The Knesset approved an amendment to regulations regarding the Industrial Cooperation Understandings (offset agreements) for deals of more than $5 million and $500,000 in subsequent deals.

Director of the Industrial Cooperation Authority (ICA) Adv. Bina Bar-On has informed the director generals of government ministries, health funds, and public purchasing bodies that they are bound by regulations, according to an amendment just approved by the Knesset, which requires them to report to the ICA every purchase deal amounting to more than $5 million.

Bar-On stressed that the regulations allow for sanctions enabling the ICA to freeze tenders and purchase deals that are not reported to the ICA on time, and she is confident that purchasing bodies will cooperate with the ICA in order to leverage the potential contained in Industrial Cooperation Understandings for employment and business opportunities.

Adv. Bar-On said that in the past three years the scope of industrial cooperation has totaled $8 billion, and this amendment will enhance the work of the ICA, increase the volume of deals on which Industrial Cooperation Agreements will be mandatory, and will leverage industrial cooperation between foreign companies and Israeli industry.     

In the first half of 2008 new Industrial Cooperation Undertaking commitments were received from 78 foreign companies in the value of $350 million (20.11.2008)

In the first half of 2008 new Industrial Cooperation Undertaking commitments were received from 78 foreign companies in the value of $350 million

Director-General of the Industrial Cooperation Authority (ICA) Adv. Bina Bar-On:

The commitments from foreign companies to Industrial Cooperation Undertaking in the first half of 2008 should create over 5,000 jobs for a year in industry.

The ICA initiated new industrial cooperation activities with corporate giants General Electric and Siemens to locate new Israeli technologies and suppliers in the energy, environment, water technology, installation defense and medical devices sectors.

The commitments by foreign companies to Industrial Cooperation Undertakings (ICUs) in the first half of 2008 should create over 5,000 jobs for a year in industry – said Bina Bar-On, Director-General of the ICA following publication of new figures about the ICU commitments by 78 overseas comp[anies.

Bina Bar-On points out that since the start of 2008 new commitments worth about $350 million from 78 foreign companies have been obtained.

Included in these figures are ten new companies with commitments of $80 million, the most outstanding of which are:

Thales Alenia Space Italia, which made purchases from Israel Aerospace Industries; L-3 Com. Combat Propulsion Systems, which made acquisitions from the Ministry of Defense; Ansaldo Energia, which made purchases of turbine engines and generators from the Israel Electric Corporation.

Ms. Bar-On also mentioned a balance of $1.05 billion in commitments to be realized by 2017, of which $305 million is from US companies, $708 million from European companies and $37 million from Asian companies.

Framework Agreements

During 2008 the ICA signed new framework agreements for industrial cooperation with eight companies and corporations, among them:

BAE Sys. Land & Armament, Dell, Ford Motors, Honeywell Aerospace, IBM, Rheinmetall.

Last week, says the ICA Director General the Knesset approved an amendment to the ICU regulations to the effect that threshold for agreements will stand at $5 million instead of NIS 25 million, and $500,000 for repeat purchases instead of NIS 500,000.

Adv. Bar-On also said that as part of the amendment, a regulation was added that requiring the purchasing body to make an annual report every January on deals that are expected in the coming work year with overseas suppliers. They are also obliged to report every tender or potential deal 60 days prior to publication. 

It should also be noted that the ICA initiated new industrial cooperation activities with corporate giants General Electric and Siemens, to locate new Israeli technologies and suppliers in the energy (for setting up power stations), environment, water technology, installation defense and medical devices sectors. Following purchases by the Israel Electric Corporation from these two corporations, the ICA initiated contacts with General Electric and Siemens to locate these technologies in Israel. Among other things the production package encompasses power stations overseas, including turbine parts, gas and motors through purchasing parts from Israeli industry.

In addition, four companies that were stalling in realizing their ICU commitments were put on an observation list, warning them that they must take immediate action to realize their commitments, otherwise the ICA will be forced to place them on a blacklist.

Consequently, these companies are taking measures to realize the arrears in their commitments, and detailed plans have been submitted to the ICA on fulfilling the balance of their obligations.

Additional activities by the ICA have reduced the debt of one of the companies by €25 million.

Note: $100,000 = I job for a year

Epicos.com - The Portal for Aerospace & Defence Professionals published a special focus on Israeli defence industry (05.11.2008)

Epicos.com - The Portal for Aerospace & Defence Professionals published a special focus on Israeli defence industry (05.11.2008)

In the publication you will find an exclusive interview with Mrs Bina Bar - On, Director General of the Industrial Cooperation Authority (ICA) in Israel . Additionally, you will find presentation of one of the most important Israeli Aerospace and Defence companies (Elbit Systems) and an exclusive interview with Joseph Ackerman, President and Chief Executive Officer of Elbit Systems.

All the articles originally appeared in the newsletter of Epicos.com – The Portal for Aerospace & Defence Professionals. Its appears herein with their kind permission.

Click Here to read it

The Industrial Cooperation Authority (ICA) has informed the Chairman of the Board of the Haifa Port, that the Port is not entitled  to sign any Contract with the Winning Bidder of the Ship to Shore (STS) Cranes Tender

The Contract for the STS Cranes acquisition should be signed, only after the company which won the tender, submits for the ICA’s approval a Fulfillment Plan for the completion of its Industrial Cooperation Undertaking

The ICA’s Director-General, Bina Bar On, has notified in writing the Chairman of Haifa Port, Mr. Ben-Zion Salman, that the contract with the winning bidder can only be signed after the ICA has confirmed that the provisions of the regulations pertaining to the Mandatory Industrial Cooperation, have been fulfilled, and that the process is in concert with the Ministerial Committee decision made about seven months ago, stating that “the scope of Industrial Cooperation  required from the winning bidder in the STS cranes tender will be in a value of 35%, of which 20% will be carried out by way of sub-contracting with local industries from the cranes manufacturing domain”

ICA also requires to be furnished with a copy of the Tenders Committee decision, a signed by the winning bidder Industrial Cooperation Undertaking form and a detailed Fulfillment Plan of its commitment.

The Chairman of the Haifa Port announced in response, that, “the Haifa Port company is aware of the winning bidder’s liability to comply with buy-back requirements as well as local sub-contracting, and Haifa Port will act accordingly.”

The ICA’s Director-General, Ms Bina Bar-On said, that implementing sub-contracting related to the cranes project, will provide many new jobs in the country, thus Israel has a major interest in promoting this subject.    

Representatives of Heavy Vehicle Manufacturer Navistar Plan to Visit Israel in August to Search for Industrial Cooperation in the Defense Sector  (28.07.2008)

Representatives of Heavy Vehicle Manufacturer Navistar Plan to Visit Israel in August to Search for Industrial Cooperation in the Defense Sector

The Visit is a Joint Initiative of the Industrial Cooperation Authority (ICA) and Navistar, and Provides an Opportunity to Deepen Existing Cooperation

During August Mr. Armando Medina, International Purchasing Directorof Navistar will visit Israel. He was recently also placed in charge of the offset program with the State of Israel. Mr. Medina’s job includes responsibility for locating Israeli technologies and manufacturers and examining the possibility of integrating them into Navistar’s roster of suppliers.

Navistar, one the largest heavy vehicle manufacturers in the United States, producing about 120,000 trucks and buses each year, is estimated to be worth about $12.5 billion. Over the past decade, following its Industrial Cooperation Understandings with Israel, the company has purchased about $70 million of products from Israeli suppliers. Navistar has authorized 13 Israeli suppliers.

The upcoming visit will focus on possible cooperation by the corporation’s Defense Division and representatives will tour the facilities of Israel’s defense and automotive industries. The corporation seeks to identify cooperation opportunities with Israeli companies that can provide technologies and applications for armored vehicles.

Mr. Zvi Leshem, Director of Cooperation for Special Industries said, “The ICA is investing major efforts in maintaining Navistar’s activities in light of the fact that it is realizing purchases from Israeli industry worth far more than its obligations.”

Ms. Bina Bar On, Director-General of the ICA adds that, “Navistar’s attempts to locate additional suppliers and the expansion of its cooperation with Israeli industry testifies to the fact that Navistar recognizes the manufacturing capabilities of Israeli industry and views it as an attractive source for the supply of high quality products for its needs.”

Industrial Cooperation Authority (ICA) Activities Report for 2007

Industrial Cooperation Fulfillments Rose by $158 Million to $3.1 Billion

In 2007, 106 foreign companies including 14 new firms undertook Industrial Cooperation obligations in the value of $461 million. Industrial Cooperation Fulfillments grew by $158 Million to $3.1 Billion, representing a 5% increase over 2006, out of which $700 millions were in the defense sector and $2.4 million in the civilian sector, so reported Adv. Bina Bar-On, Director General of the ICA.

The total IC fulfillments over the past five years have amounted to $11.5 billion,  of which  $6 Billion has been achieved in the past two years. 

The outstanding commitments to be fulfilled until to 2017 amount to $973 million, of which $303 million are from American corporations, $644 million from European companies and $26 million from Asian enterprises.

ICA holds IC Agreements with 206 foreign companies of which 62 have carried out IC fulfillment activities over and above their original commitments.

Four companies have been put on a special observation list which includes companies that failed to fulfill their undertaking on time.

10 companies signed in 2007 long term umbrella IC agreements with  ICA, among them: IBM, HP, Ford, DRS and ABB.

Outstanding IC fulfillment performance was achieved in 2007 by Intel ($1.1 billion); General Electric ($396 million); Spirit ($200 million); Pratt & Whitney ($182.5 million); IBM ($143 million); Lockheed Martin ($128 million); Siemens ($120 million); and GM ($97 million).

287 Israeli enterprises benefited from IC activities in 2007. Of these 50 companies have less than 50 employees while 200 factories have up to 250 employees. As result of ICA’s policy to encourage foreign companies in diversifying their fulfillment activities in Israel by including additional factories, 50 Israeli companies benefited for the first time in 2007 from the fulfillments of commitments, among them three enterprises which provided engineering services.

38 factories received orders worth $10 million, 25 factories were given orders ranging between $5-10 million, 62 factories has orders ranging from $1-5 million and 152 factories enjoyed orders of less than $1 million.

New Regulations

In 2007 new Mandatory Tenders Regulations (Industrial Cooperation Obligations) came into force.

The principles of the new regulations are:

- The threshold of Mandatory IC undertaking was raised to transactions exceeding NIS 25 million by Government Ministries, Government Companies, Statutory Authorities, Health Funds and Local Corporations.

-         The extent of IC amounts to 50% of defense purchase transactions that are not funded by foreign aid and 35% of civilian purchases (28% for suppliers from GPA member states).

-         Enforcement tools were determined enabling ICA to freeze a tender that does not comply with the mandatory industrial cooperation regulations and to black list a foreign supplier that did not comply with its industrial cooperation undertaking pursuant to these regulations.

Enforcment of the Mandatory Industrial Cooperation on Government Companies 

The Knesset Finance Committee approved ICA’s request to apply the mandatory industrial cooperation regulations on  government companies that were established after 1995: Israel Ports Company, Haifa Port, Ashdod Port, Eilat Port, NTA –Metropolitan Mass Transit System, Israel National Roads Co. (formerly Public Works Auth.), Natural Gas Lines, Israel Railways, RAFAEL, Israel Post and its subsidiary the Postal Bank.

Transferring IDF Bases to the Negev

During a series of meetings at the Ministry of Defense with the head of this project, it was mutually agreed to maximize the Israeli content during execution of this project (Training Base City, Base 27 and Base 8200) and to enforce the industrial cooperation regulations on foreign suppliers participating in the project’s execution, even if the work will be carried out by an Israeli integrator.

EPICOS

In Sept. 2007, ICA launched its EPICOS project providing Israel’s aerospace, defense, high-tech and dual use industries free access to international tenders in these sectors, published on the web site of the program operators by various countries and the leading western aerospace, and defense industries.

Since lunching the program,108 small and large Israeli factories, that joined the program to locate business opportunities published there, performed thousands of entries into the web site.

According to reports, carefully gathered from participating factories in the program, potential customers have already been identified by some participants, achieving substantial connections with them.

The program will be operated for a period of two years. During this period the effectiveness of the program will be monitored, so decision about continuing the project can be made.

Haifa Port Co.

Following Haifa Port Co.’s appeal against ICA’s decision imposing mandatory  local sub-contracting on the port cranes tender, the Governmental Appeals Committee–headed by the Minister of Justice Prof. Daniel Friedmann, and members of which were the Minister of Transport Mr. Shaul Mofaz and the Deputy Prime Minister and Minister of Industry, Trade and Labor Mr. Eli Yeshai - unanimously rejected the appeal and approved ICA’s decision.  The Committee decided that the scope of industrial cooperation should be at a rate of 35% of which 20% should be performed by the way of local sub-contracting in the cranes’ production and instructed Haifa port management to notify all the tender participants’ to meet ICA’s requirements.

Industrial Cooperation Directors Conference

ICA convened a conference in Jerusalem for Industrial Cooperation directors from 20 countries. At the conference professional topics were discussed and ways of strengthening cooperation between the various industrial cooperation authorities in the world for the benefit of industry were investigated.

Offset Abatements

In 2007, ICA initiated and achieved mutual abatements of offset obligations of Israeli industries in European countries, having offset obligations related to defense exports in the value of $40.5 million.

In the past five years, the ICA initiated abatements for Israeli industry in the value of $205 million.

ICA Catalogues

ICA has produced a new, updated edition of its comprehensive industrial directory in English, which includes surveys of all industrial sectors, and updated information about the Israeli industry and its capabilities.

ICA has also published an updated directory of Israeli suppliers for the world’s automotive industry.

ICA’s Website

ICA’s website www.ica.gov.il in English and Hebrew has been rebuilt. The website contains all legislative information, foreign supplier undertaking wording and relevant forms in both languages, the Israeli industries directory, together with sector surveys and an advanced search capability. The website also contains lists of foreign companies having IC agreements with the State of Israel and information about offset policy and legislation in other countries.

ICA’s website also enables users to make contact with the ICA.      

Among the Outstanding Companies Active in Israel Who Have Fulfilled Their Industrial Cooperation Understandings Are Siemens and Volkswagen (20.03.2008)

During the visit of German Chancellor Angela Merkel toIsrael there was a meeting between Deputy Prime Minister and Minister of Industry, Trade and Labor Eli Yeshai and his German counterpart Minister for Economics and Technology Michael Gluss. During that meeting, ICA Director General Bina Bar-On pointed out that there exists industrial cooperation offset commitments from 26 German companies in the automotive, railway, computers, electronics, mechanical engineering equipment and metals sectors and more.

The commitments accumulated by these German companies totals about €656 million and Israel’s exports stemming from these commitments amounts to €1.54 billion – double the commitments.

In addition, the ICA holds commitments for undertakings worth about €358 million.

Among the outstanding German companies active in Israel are Siemens, which purchases products from some 150 Israel factories in a range of sectors. The amount of orders from Israeli industry between 2001 and 2007 reached more than €1.1 billion. (Total fulfillment of understandings from Israeli companies since the start of activities stands at about €1.4 billion).

Since 2000 Volkswagen has undertaken Industrial Cooperation Understandings worth €135 million, which is 11 times its commitments. The company purchases products from about 15 Israeli factories (total fulfillments from companies in Israel since the start of activities amounts to €224 million).          

Ford and the Industrial Cooperation Authority (ICA) Have Signed a Framework Agreement for Industrial Cooperation

ICA Director General Adv. Bina Bar-On: “Ford is one of the outstanding companies in fulfilling Industrial Cooperation Understandings commitments, and which realizes them well in excess of those commitments.”

A new agreement for industrial cooperation in Israel has been signed between Ford and the Industrial Cooperation Authority (ICA). This is an extension of the previous agreement concluded in 1998 during which period Ford has authorized more than 12 new suppliers for its production lines in the U.S., Germany and England as well as a number of new technologies in the automotive sector. The industries benefiting include a wide range of technologies and factories located in development regions in the North and South of the countries and on kibbutzim. The leading suppliers are: Tadir Gan – Afula Illit; Ortal – Bet Shean Valley; Rio – Kibbutz Kabri; Ravel – Kibbutz Revivim; Arkal – Bet Shean Valley; Raviv and EMC – Haifa Bay; as well as leading technological companies such as Technomatix, Mobil Eye, Cognisense and Yammar.

ICA Director General, adv. Bina Bar-On said that, “Ford is one of the outstanding companies in fulfilling Industrial Cooperation Understandings commitments, and which realizes them in well in excess of those commitments.”

She added that, “We must appreciate Ford’s readiness to continue its industrial cooperation endeavors in the country despite its relatively small amount of commitments and we especially value Ford’s executives in Israel, Mr. Noah Miller, the Office Manager in Israel and Mr. Yossi Porat advisor on industrial cooperation understandings, on their welcome activities in developing Ford’s suppliers.

Zvi Leshem, Director in charge of IBM’s Industrial Cooperation Undertakings and industrial cooperation activities in Israel said that the new agreement reflects Ford’s satisfaction with Israeli suppliers and the technological capabilities of those suppliers.

Noah Miller, Regional Manager of Ford made clear his company’s outlook regarding purchases from suppliers in Israel when he said, “Even though Israel is physically small, the offerings of quality suppliers and particularly innovative technologies is very large, much more so than one would expect and we would greatly miss this if we did not have a presence in the country.” He expressed his wishes for many more years cooperative activities in Israel.  

In the picture from right to left:

Joseph Porat – Ford's Offset advisor, Bina Bar-On – ICA's director General,  Noach Miler – Ford Israel Sales & marketing Director, Zvi Leshem – ICA's Automotive Director

ICA Director General Bina Bar-On: “The winner of the tender will implement local subcontracting in building cranes for the port of at least 20 percent of the value of the tender.”  

This will account for about 300-500 jobs in Haifa, Yerucham, Tamra, Beer Sheva, Bet Shemesh and other locations.

The Ministerial Committee comprised of Justice Minister Prof. Daniel Friedmann, Transport Minister Shaul Mofaz, and Deputy Prime Minister and Minister of Industry, Trade and Labor Eli Yeshai yesterday discussed the appeal submitted by Haifa Port against the Industrial Cooperation Authority’s (ICA) decision that local subcontracting must be implemented on the cranes tender.

The Committee unanimously rejected the appeal and decided to accept the ICA’s position on the matter. The Committee determined that the scale of local purchases will be about 35% of which 20% will be local subcontracting in the local cranes domain and instructed the Port to inform the tender’s participants that they must meet this demand by the ICA.

The significance of the ICA’s decision is that between 300-500 places of employment will be created in many factories around the country (in Haifa, Yerucham, Tamra, Beer Sheva, Bet Shemesh and other locations) and that the ability of Israeli industry to handle international tenders has been acknowledged.

ICA Director General Bina Bar-On said that the tender will be implemented local subcontractors in the ports crane construction sector to a value of at least 20% of the tender.

In its decision the Committee determined that local subcontracting strengthens Israeli companies engaged in this area and may enable them in time to bid for tenders in Israel and abroad. In this manner jobs can be created in Israel if the ICA’s position is accepted. It is highly likely that this will happen in regions in which the State has a special interest in adding employment opportunities.

The Committee based its decision on the ICA’s experience over the years in this field and its sense of professional responsibility.

ICA Director General Bina Bar-On points out, that undertakings as a result of buy-back agreements between 2004-2006 amounted to $2.34 billion. Realizing these agreements over this period amounted to $6.347 billion.

Obligations Worth $225 Million in Industrial Cooperation Undertakings Completed in 2007 of which $144 Million was in the Defense Sector and $81 million in the Civilian Sector

Obligations Worth $225 Million in Industrial Cooperation Undertakings Completed in 2007 of which $144 Million was in the Defense Sector and $81 million in the Civilian Sector

ICA has Industrial Cooperation Agreements from 271 Companies Worth $1.08 billion

In 2007 Regulations Requiring Mandatory Tenders (Industrial Cooperation) Come Into Force Which Set Out to Make More Efficient Industrial Cooperation Undertakings and Adapt Them to Global Developments

Industrial Cooperation Undertakings commitments amounting to $225 million were completed in 2007, of which $144 million was in the defense sector and $81 million in the civilian sector, said Bina Bar-On, Director General of the ICA.

The Director General of the ICA also noted that the number of companies recording commitments in 2007 stood at 99, of which 13 were new firms. In total the ICA has Industrial Cooperation Undertakings commitments from 271 companies amounting to $1.08 billion.

It should be noted that the volume of commitments in 2007 decreased when compared to 2006 by about 85%. This reduction resulted principally from exceptional one-off commitments in 2006 by Intel worth $810 million and HDW Shipyards worth $340 million.

During 2007 the ICA signed long-term industrial cooperation agreements (framework agreements) with 14 overseas companies. Among companies signing these agreements with ICA were: ABB, the Swiss firm producing equipment for electrical conductors; DRS, engaged in electronics and avionics; HP; and Kodak.

Over the year the ICA also assisted six Israeli defense companies to offset Industrial Cooperation Understanding commitments in other countries worth about $23.5 million.

In 2007 regulations requiring mandatory tenders (industrial cooperation)  2006 came into force – the main points of the regulations Are:

·         Broadening the circle of bodies requiring industrial cooperation commitments

·         Changing the existing threshold for imposing industrial cooperation commitments from $0.5 million to $5 million.

·         Separate percentages for required Industrial Cooperation Understandings for civilian imports and security imports

·         Providing topical priorities – according to government policies

·         Methods of enforcement

The aim of these regulations, says Bina Bar-On, is to make Industrial Cooperation Understandings more efficient and adapt them to global developments.

IBM and ICA Renew Framework Agreement for Industrial Cooperation.

IBM and ICA Renew Framework Agreement for Industrial Cooperation

ICA Director General Adv. Bina Bar-On:

“IBM represents an excellent example of successful and ongoing industrial cooperation, which yields long-term fruits for all parties.”

An additional agreement for industrial cooperation in Israel was signed this week between IBM and the Industrial Cooperation Authority (ICA). This follows the previous agreement that was signed in 1996. Over that period IBM implemented Industrial Cooperation Undertakings purchases amounted to $1.1 billion as part of Israeli government orders from the company worth $516 million.

ICA Director General Adv. Bina Bar-On pointed out that “IBM is one of the outstanding companies in fulfilling its Industrial Cooperation Undertakings commitments. By the end of 2007 IBM realized and implemented Industrial Cooperation Undertakings worth $1.1 billion, which was far in excess of its commitments.”

Adv. Bar-On added that, “the ongoing preparedness of IBM to assist in developing contacts with Israeli suppliers represents an excellent example that other companies and economic organizations should follow.”

Zvi Leshem, ICA’s Director in charge of IBM’s Industrial Cooperation Undertakings and industrial cooperation activities in Israel said that IBM’s new agreement reflects the ICA’s policies of developing new suppliers and providing opportunities for exposure to IBM of Israeli technologies.

Meir Nissanson, CEO of IBM Israel said that IBM’s contribution to Israel, where it has been operating for 59 consecutive years is expressed clearly in the industrial cooperation sector, as well as in additional outstanding activities such as: substantial investments in R&D laboratories in the country, acquisition of Israeli companies and their subsidiaries, R&D Centers in Israel and more.        

The Industrial Cooperation Authority (ICA) host Ms. Mary Hershey, International Purchasing Manager of the International Co. in order to broaden cooperation. 

Director-General of the ICA, Ms. Bina Bar-On said, “This is an opportunity to broaden cooperation which will benefit both sides – The State, Israeli industry and the International Company. Seeking additional suppliers and broadening cooperation with Israeli industry shows that International recognizes production capability of Israeli industry and sees it as an attractive source for supplying components for the corporation’s production and assembly lines.” 

International is one of the world’s leading manufacturers of trucks and diesel motors. Following its commitment for reciprocal purchases the company has acquired about $50 million worth of Israeli components over the past decade for its production and assembly lines.  

Recently the company has added to its list of suppliers TadirGan, which provides the engine factories of the company with about $6 million of aluminum high pressure dies per year. 

Addition Israel suppliers to International include Omen Metal products which provides metal casting (since 2006 the company has supplied orders of about $5.5 million annually), SuperGum, Iscar, Ornit and Deutsch Dagan. 

Ms. Mary Hershey, who serves as the International Purchasing Manager of the company, has requested on behalf of International’s management to take advantage of her visit to Israel to make new contacts and hold business meetings with potential Israeli suppliers. She will visit 12 Israeli factories: Raviv, Ravel, Deutsch Dagan, Mag-Eh, Eltam, Fishman Engineering, Frikso, Tiroche, SuperGum, TadirGan, Foamotive and Polyrite. 

The corporation sees the possibility of increasing orders from suppliers by about $5 million annually.

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