IAI signs largest ever deal (Israeli defense company)

Globes, Israel ^ | 12 January 12 | Yuval Azoulai

[sukhoi-30mki]

IAI signs largest ever deal

Israel Aerospace Industries' $1.6 billion contract with an Asian country includes the Green Pine radar - part of the Arrow anti-ballistic missile system.

12 January 12 21:31, Yuval Azoulai

Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) has signed the second stage of a huge deal with an Asian country, which makes the deal the largest in the company's history - $1.6 billion.

IAI notified the TASE on Sunday about the first stage of the deal for the supply of a range of arms system for $1.1 billion to an Asian country. It did not disclose the name of the country or the systems to be supplied.

IAI will supply unmanned aerial vehicles (UAV), state-of-the-art missiles, including sea-to-sea missiles, and sophisticated radar systems, including the Green Pine, made by IAI's Elta Systems subsidiary, which is part of the Arrow anti-ballistic missile system.

IAI will supply the systems over four years. The second $500 million deal was signed after IAI met the customer's demand for guarantees, and the procedures for their approval were completed.

The deal surpasses the $1.4 billion contract with India signed two years ago for the supply of Barak ship defense missiles and other defense systems.

A confidential client

At the request of the customer in the present deal, the details of the country have been kept confidential, and IAI and the defense establishment are not disclosing its identity. However, this is the first time that the country has signed a contract with IAI, a fact which itself indicates the complexity of the deal and the need for confidence building measures by the parties

Defense establishment sources involved in the deal said that IAI representatives recently held intensive negotiations with the unnamed country's team, after two years of talks. IAI CEO Yitzhak Nissan handled the critical stages of the negotiations.

In an earlier report about the deal, "Globes" incorrectly said that the customer was India.

[sukhoi-30mki]

Green Pine radar

[James C. Bennett]

South Korea?

[Yorlik803]

And/or Taiwan.

[katana]

In 2000 I was standing in line to catch a taxi outside the Renaissance Hotel (I think - can't recall for sure since I've stayed in several) in Beijing where I was seeing a potential distributor for the medical products company I was working for then. The fellow in line in front of me (a Caucasian) was holding a folder showing the name and logo of the Israel Aerospace Industries. That struck me as interesting and never forgot.

I think it's quite possible (not exactly likely, but possible) this "Asian country" is the PRC. I'd probably rule out North Korea or Pakistan but nobody else. Everybody sells to and/or owns factories and buys stuff in China, including the Taiwanese.

[Oztrich Boy]

South Korea?

No

At the request of the customer in the present deal, the details of the country have been kept confidential, and IAI and the defense establishment are not disclosing its identity. However, this is the first time that the country has signed a contract with IAI, a fact which itself indicates the complexity of the deal and the need for confidence building measures by the parties

Previous Green Pine sales to S. Korea in 2009, and India in 2002. So this customer in new.

[sukhoi-30mki]

The likes of South Korea, India, Singapore and Thailand all rule them out since they have been Israeli customers for a while and have (relative) transparency regarding these deals.

Taiwan would have been too politically hot for Israel to handle since the Chinese would have known very early.

An educated guess would be either Vietnam or Indonesia. Both are trying to diversify away from Russian systems but don’t have the clout to purchase everything they want from the West. So Israel is a reasonable bet. A couple of years ago, there were reports that Israel was planning to sell/had sold UAVs to Indonesia.

[sukhoi-30mki]

That would have caused a ruckus with Washington at a time when Israel least needs it. The Israelis wound down cooperation with China around the time-period you mentioned.

[ravager]

Kinda skeptical Indonesia (worlds largest Muslim country) would make a 1.6 billion dollar deal with Israel. Indonesia has been very vocal anti-Israel country. This deal will not remain a secret for too long in this day and age. The world will eventually know. And it is not going to go down very well with Muslims in Indonesia and elsewhere. Indonesia didn't accept any Israeli systems on the Su-30 MKI, highly unlikely they would go ahead and make a 1.6 billion dollar deal secretly.

[MHGinTN]

I buy their 5.56 ammo for my ‘home defense’ tools. Good stuff, properly annealed.

[sukhoi-30mki]

I believe you are referring to Malaysia asking for Israeli subsystems to be removed from their SU-30 MKM variants; Jakarta purchased a very basic SU-30 MK model with few non-Russian systems.

While we should be skeptical, the ‘confidentiality’ clause is what strikes me. Most other (non-Muslim) countries would not need to bother with that. The nature of systems ordered-UAVS and naval missile means also point to a country with significant naval needs for which Indonesia and Vietnam fit the bill.

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