Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Defense cos lose $200m on Venezuela arms ban
The US-requested ban was prompted by anti-Israeli declarations by President Chavez.
Ran Dagoni, Washington 7 Jan 07 13:35
Israel has imposed a ban on the sales of arms and military equipment to Venezuela, an important customer of Israeli defense companies. The ban, which has received little media attention, was imposed at the explicit request of the US, and because of anti-Israeli declarations by Venezuela President Hugo Chavez.
“Defense News” reports in its latest issue that the embargo was imposed in August 2006. Israeli defense sources estimate the cost of the ban on Israeli defense companies at over $200 million in the immediate term. The ban led the suspension of negotiations for a contract to upgrade Venezuela Air Force F-16s, which would have also involved the sale of weapons, avionics, navigation pods, and training and support equipment. Excluding this contract, Israeli defense officials in December estimated Israeli arms sales to Venezuela at $50 million a year.
The ban has also led to the suspension of sales of air control radar, naval radar systems, a follow-on order for the Barak Ship Point Defense Missile System, advanced artillery, and unmanned aerial vehicles (UAV) for monitoring the country’s oil pipelines and energy installations.
The Israeli arms ban followed a US arms embargo against Venezuela imposed on May 15, 2006. The US ban not only bans direct sales by US defense contractors, but also equipment and technologies that include US-made components. In May 2005, the Ministry of Defense banned Israeli companies from upgrading US-made military systems used by the Venezuela armed forces. At the time, Israeli officials did not consider Venezuela as a direct threat to Israeli national security, and the Ministry of Defense tended to approve the sale of communications equipment, avionics, naval systems and other equipment that was based on Israeli technology. Each deal was carefully reviewed on its own merits before being approved.
However, during 2006 Venezuela tightened ties with international organizations with suspected terrorist ties, and returned its ambassador to Israel because of the second Lebanon war, began to publicly supporting Iran’s nuclear ambitions and signed strategic cooperation agreements with it.
Published by Globes [online], Israel business news - www.globes.co.il - on January 7, 2007
2006 to be record year for defense exports
“Defense News”: The orders backlog of Israeli defense contractors account for 10% of total global arms sales in 2006.
Ran Dagoni, Washington 6 Dec 06 13:20
2006 will apparently be a record year for Israeli defense exports. Ministry of Defense figures, the orders backlog at defense contractors reached a record $4.1 billion at the end of November. $500 million should be added to this figure on the basis of contracts due to be signed by year-end. These include the sale of 2,600 Spike-ER extended range multi-purpose missiles, made by Rafael Armament Development Authority Ltd., to the Spanish Army for $428 million
The previous orders backlog record was set in 2002: $4.02 billion.
“Defense News” reports that the orders backlog of Israeli defense contractors account for 10% of total global arms sales in 2006. Israel is the world’s fourth largest arms exporter in the world, after the US, Russia, and France.
Last year, US companies signed contracts for the sale of arms worth $12.75 billion, Russian companies signed contracts worth $7.9 billion, and French company signed contracts worth $7.4 billion.
“Defense News” says Israel Aircraft Industries Ltd. (IAI) will have signed contracts worth $2.7 billion at the end of 2006; Rafael will have contracts worth $1.1 billion, up from $830 million at the end of 2005, and is in advanced negotiations for a $400 million deal.
Published by Globes [online], Israel business news - www.globes.co.il - on December 6, 2006
Sky Shield intercepts Katyusha, Kassam rockets in tests
Each Sky Shield costs $15 million. Lockheed Martin: 4-5 systems can provide effective defense for a town such as Sderot.
Amnon Barzilai 29 Nov 06 15:02
Lockheed Martin Corp.’s (NYSE:LMT) Sky Shield air defense system has successfully intercepted and destroyed warheads of Katyusha and Kassam rockets in a series of laboratory tests conducted at the company’s missile and fire control division. Development of the Sky Shield is due to be completed in 2007.
Lockheed Martin presented the Sky Shield’s capabilities before Israeli defense officials. The company believes that the system can provide an effective defense against both Katyusha and Kassam rockets. Each system costs $15 million, and the company believes that four or five systems would provide effective defense for a town such as Sderot.
The Sky Shield system includes a radar and rapid-fire 35mm cannon, which can destroy income rockets using tungsten-tipped munitions positioned in a spiral. Each 35mm shell contains 152 shrapnel that are fired towards the target by a preset precision time-delayed fuse.
A short burst of fire create a lethal cloud of shrapnel that fill the incoming rocket’s path. The bullets penetrate the rocket’s skin causing damage severe enough to prevent it from fulfilling its mission.
The latest tests were conducted on a precise copy of a Kassam rocket; not on an original one. The next stage of development involves packing the shrapnel in a way to minimize their size while retaining their lethality.
Published by Globes [online], Israel business news - www.globes.co.il - on November 29, 2006
Dubi - what a brilliant, fascinating idea.
Linking this one to the Interesting Stuff board - a perfect example!... Aiming4.
Dubi,
Such great news and since I am a doggie lover and owner back to basics is the best route.
Read the article to hubby, he was impressed....
Fascinating post. Woof, woof!
Israeli home security system barks up the right tree
By Nicky Blackburn November 26, 2006
A new Israeli biometric technology can transform your family dog into a sophisticated warning system that can detect an intruder in your home and alert security forces, with just a bark.
DBS (Dog Bio-Security System), created by Bio-Sense Technologies, is a biometric alert sensor integrated into the dog's collar which analyzes a dog's bark to determine if someone has broken into your house or is involved in other suspicious behavior. The computer-based system, which can be integrated into existing security systems like central control systems, home alarms, and CCTV monitoring systems, goes into operation the moment a dog starts to growl or bark.
If an intruder tries to break in, or actually succeeds in doing so, the dog's barks rise rapidly in intensity and the technology goes to full alert, sending out details of the security breach to the homeowner via SMS, triggering the house alarm, and even alerting local security companies.
According to FBI statistics, more than 1.2 million burglaries took place in US residential structures in 2005. The DBS system, which goes on sale in the US next year, can differentiate and decode all the different barks of a dog, from a dog howling at the moon, to barking at a person passing in the street, or welcoming a member of the family home.
"A dog barks differently if he sees a cat, or he wants to play with you, or if he's greeting you when you come in," Eyal Zehavi, the founder and CEO of Bio-Sense, told ISRAEL21c. "If the postman comes in every day week after week the dog gets used to it and it's not a threatening situation, but if the postman comes for the first time, or someone else tries to enter that would not normally come in, then the dog barks the alarm bark.
"Dogs have a specific bark when someone threatens their space. It doesn't matter what breed of dog they are, how big or small, or what sex, all that matters is that they bark in response to a threatening situation. An alarm bark is always the same."
Using dogs as guards is nothing new. They have better night vision than humans, a sense of smell that is 50,000 times greater than man, and a sense of hearing 20,000 times greater. The problem, however, is that humans do not always understand a dog's bark, often dismissing the barks as unimportant or insignificant ? the response to a cat perhaps, or another dog passing nearby.
Zehavi, a passionate dog lover, came up with the idea for DBS while he was serving in the army. A technology specialist, he often worked at bases that were guarded by dogs. He soon discovered, however, that though the dogs were barking, break-ins still occurred because no one was there to hear them. "We decided to close the gap," says Zehavi.
He began researching the subject and discovered that dogs bark differently in response to different situations, and that these barks are recognizable across the species. "If a dog or its owner is threatened they alert their pack that there is a danger," says Zehavi. "Through algorithms we learned how to identify the sounds."
Zehavi founded Bio-Sense in 2000. Since then the company has received $1 million in funding from venture capital firm, Ma'ayan Ventures, and from the Office of the Chief Scientist. Mass sales of its product began this year, and break-even point will be reached in a couple of months says Zehavi.
Bio-Sense began selling its first version of DBS a few years ago to the Israel Ministry of Public Security and the Israel Defense Forces, notably to guard prisons, military bases and other sensitive locations.
"We wanted to prove ourselves in a maximum security environment," says Zehavi. "We had to pass many operational tests, which we did successfully. It gave us a seal of approval from the high security authorities. If we could make it there, then the system was battle proven."
From there, the company has begun offering its solution to the commercial sector, again targeting the Israeli market first. Today Bio-Sense, which employs 10, offers a full service solution. It finds and trains the dogs, installs them, takes care of them every day, and connects DBS to the customer's security system.
"What this provides is a strong security solution at less than one third or even a quarter the cost of human guards," says Zehavi. "As far as being cost-effective, for homeland security it's a must. DBS gives you very high security at very little cost."
In October, Bio-Sense signed a three-year cooperation agreement worth $1.5 million with Team 3 Security Systems, a large Israeli security company, to market DBS in Israel.
The company's next goal is to move into the private sphere. Already the company's technology is being used successfully in a few dozen Israeli homes, and Bio-Sense aims to start selling the technology in the US late in 2007, at the same time that it plans to move into their commercial and security sectors. The home DBS product will cost in the region of $150.
"A system like this makes sense to the private sector," says Zehavi, who uses the system on his own pet dog to protect his home. "The dogs are already there and they know what is happening in the home. What we offer is the opportunity to understand what your dog is actually saying. I feel very quiet knowing that I have this system in place. Even if all the electrical systems are down I know that my home is protected."
The system is fully supported by pet charities. The dogs that Bio-Sense uses come from dog shelters, and most would have been put to sleep without the company's intervention. "We save the lives of hundreds of dogs every year. We find them a good home, take care of them every day, and give them a good life," says Zehavi.
The company is now looking for strategic partners in the US and Europe. It is all also undergoing a new round of fundraising and aims to raise $3 million. In the future, the company plans other products that also decode a dog's bark to help dog owners understand their pets better than ever before.
http://www.israel21c.org/bin/en.jsp?enDispWho=Articles%5El1482&enPage=BlankPage&enDisplay=vi...
Hatehof forms armored-vehicle JV with Rafael
Hatehof is building the “Wolf” armored vehicle in cooperation with Rafael.
Amir Keidan 27 Nov 06 10:08
Heavy-duty vehicle manufacturer Hatehof Netzer Sereni announced yesterday that it signed an MOU with Rafael Armament Development Authority Ltd. for the formation of a jointly-owned company which will develop, build, market and maintain armored and road vehicles.
Under the MOU, Hatehof and Rafael will hold equal shares in the new company, whose officers will be appointed by both companies under a distribution agreed on in the MOU.
Hatehof is currently building the “Wolf” armored vehicle in cooperation with Rafael for the Ministry of Defense. The company is set to begin mass production of the vehicle, having completed most of the experimental and trial stages.
Hatehof shares closed up 6% following yesterday’s announcement.
Published by Globes [online], Israel business news - www.globes.co.il - on November 27, 2006
Israel waiting for answers on Skyguard
By YAAKOV KATZ
Northrop Grumman, the US defense contractor that makes the Skyguard anti-missile laser system, was refused meetings with senior Defense Ministry officials this week, The Jerusalem Post has learned.
Skyguard, also known as Nautilus, is a laser cannon capable of intercepting short-range projectiles such as Kassam rockets. It was developed by the US Army in conjunction with the IDF. Israel, which invested $100 million in the project over the past decade, has suspended its participation following a similar decision by the US Army.
After the recent war in Lebanon, Defense Minister Amir Peretz appointed ministry Director-General Maj.-Gen. (res.) Gabi Ashkenazi to head a committee to choose an anti-missile defense system for purchase. According to ministry officials, the panel plans to issue its recommendation in the coming weeks.
Last week, Northrop Grumman asked to meet with officials from the Defense Ministry's Research and Development Authority about the suspended Skyguard project this week. One system has already been tested at the US Army's White Sands Missile Range in New Mexico and according to Northrop Grumman, it could be deployed in Israel within six months.
According to Israeli defense officials, Northrop Grumman asked for a meeting but did not plan to present any new findings. Northrop Grumman is waiting for Pentagon approval to present improvements made to the product to the Israeli defense establishment.
The main issue concerns the system's range. Israel was last told that the system only covers a three-kilometer area, meaning dozens of systems at a cost of billions of dollars would be needed to protect the entire northern border. The Defense Ministry is waiting to see if the company was successful in increasing the system's range to 10 km.
"There is no point meeting with them if they have nothing new to show us," said one defense official. "We told them that when they have something new to tell us we are ready to listen."
Northrop Grumman was unavailable for comment.
http://www.jpost.com/servlet/Satellite?c=JPArticle&cid=1162378487783&pagename=JPost%2FJPArti...
Defense Ministry chief against Peretz: Privatize IMI
Defense Ministry director general Gabi Ashkenazi and IMI’s board support privatizing the company.
Amnon Barzilai 20 Nov 06 16:18
Ministry of Defense director general Maj.-Gen. (res.) Gabi Ashkenazi has announced that he supports privatizing Israel Military Industries Ltd. (IMI), even though he knows that Minister of Defense Amir Peretz opposes the measure.
Ashkenazi told IMI directors last week that in view of the company’s cash flow it was not possible to oppose the Ministry of Finance, which wants to privatize the company.
Sources inform ''Globes'' that IMI’s board also supports privatizing the company. During a meeting with Peretz yesterday, it was proposed that the company’s employees share in its ownership.
During the meeting, IMI CEO Avi Felder presented figures indicating improvement in the company’s performance, including NIS 1.4 billion in sales in 2006 and an orders backlog of NIS 5.2 billion.
Sources added that IMI workers committee has a legal opinion stating that IMI owns the 5,000-dunam (1,250-acre) site of the company’s Ramat Hasharon plant. The workers committee told Peretz and IMI’s board that it considered the legal opinion as its “doomsday weapon”. The workers committee claims that the legal opinion makes it possible to prove that IMI can use the land to obtain guarantees to ensure a positive cash flow.
Peretz told the Knesset Foreign Affairs and Defense Committee today that he strongly opposed privatizing IMI. In response to a question by MK Ran Cohen (Meretz), he said that he would meet Minister of Finance Abraham Hirchson in early December to discuss the company’s future. Meanwhile, he added, IMI’s orders must be increased to ensure its profitability. He revealed, however, that the shekel’s appreciation against the dollar caused IMI heavy losses.
Published by Globes [online], Israel business news - www.globes.co.il - on November 20, 2006
I'd expect this to go through Midas
Underarmoured Personnel vehicles have been quite a political hot button back here. Canadians are encountering the heaviest fighting in fifty years right now in Afghanistan and troops are getting blown to bits (quite literally) from RPG and suicide bombers.
If it's as good as they say it is quite likely this Israeli firm will be the winner of the tender IMHO. Simple fact is the Canadian army is under funded and under protected. The voters are expressing dissatisfaction with so many casualties so the new conservative government has pledged Billions in military hardware funding. If the Israeli system is what they say it is hard to imagine them getting turned down to my mind. JMVHO
Cheers...Rich
USAF to purchase 20 Python 5 missiles - report
This will be the first time that the US Air Force has purchased air-to-air missiles from a foreign manufacturer.
Ran Dagoni, Washington 7 Nov 06 14:05
US defense news magazine “Defense News” reports that the US Air Force is to buy 20 Python 5 Full Sphere air-to-air missiles from Rafael Armament Development Authority Ltd., for a F-16 fighter squadron stationed at Nevada. Should the negotiations lead to a contract, this will be the first time that the US Air Force has purchased air-to-air missiles from a foreign manufacturer. Sources at Rafael’s US office declined to comment on the report.
“Air-to-air missiles are a matter of masculinity, like fighter aircraft or tanks. Missiles like these are the kind of weapon that fighting organizations find difficult to buy from a foreign party since they represent the core of their being,” said former Pentaon official Frank Cevasco, who managed international development and production programs under four US defense secretaries.
Over the years, the Pentagon has purchased air-to-surface missiles for fighter aircraft in the US Air Force and Navy from foreign manufacturers, including AGM-142 (Popeye) missiles from Israel, Durandal missiles from France, and Penguin missiles from Norway. However Cevasco and other procurement specialists at the Pentagon could not recall a single case where the US Air Force purchased air-to-air missiles from a foreign company.
Published by Globes [online], Israel business news - www.globes.co.il - on November 7, 2006
Israel seventh largest arms exporter
Congressional Research Service: Israel is the second largest arms importer, after Saudi Arabia.
Ran Dagoni, Washington 30 Oct 06 14:31
An annual report by the Congressional Research Service states that Israel was the world’s seventh largest arms exporter in 2005, and was the second largest arms importer, after Saudi Arabia. The Congressional Research Service is the public policy research arm of Congress that operates as a legislative branch agency within the Library of Congress.
The report was sent to legislators on Capital Hill. It relies mainly on US government data, which indicate that the US was the world’s largest arms exporter, delivering $11.5 billion worth of arms to customers, including Israel. The UK was in second place, with $3.12 billion worth of arms exports, followed by Russia ($2.8 billion), France ($1.6 billion), China ($900 million), and Germany ($600 million).
The report distinguishes between arms deliveries and contracts. Israel delivered $600 million worth of arms in 2005, making it the seventh largest arms exporter. Israeli defense contractors had arms contracts worth $1.1 billion, putting Israel in tenth place in terms of arms export contracts. The difference between the two figures is for contracts whose deliveries take more than one year.
The report states that Israel imported $1.7 billion worth of arms and military equipment in 2005. Saudi Arabia imported $3.5 billion worth of arms. The report states that Israel signed arms procurement contracts worth an aggregate $9.5 billion in 1998-2005. The report did not provide a figure for contracts signed in 2005 alone, which may indicate that Israel signed no arms procurement contracts last year.
A breakdown of the figures shows that Israel signed $6.6 billion in arms procurement contracts with the US alone in 1998-2001. Four years later, however, Israel has diversified its sources of arms: $2.5 billion from the US, $300 million from Russia, and $100 million from small European countries (i.e. not the UK, France, Germany, or Italy).
Published by Globes [online], Israel business news - www.globes.co.il - on October 30, 2006
IDF to use Polycom battlefield video conferencing system
The portable systems weigh 35kg and are the size of a suitcase.
Amnon Barzilai 23 Oct 06 16:16
Polycom Inc. (Nasdaq: PLCM), a developer of video communications systems, will supply the IDF with portable video conferencing systems for use in the future battlefield. The systems are equipped with a screen, camera and remote control. The deal is estimated to be worth a few million shekels.
The systems, which were specially tailored by Polycom to meet IDF requirements according to predetermined characteristics, weigh 35kg and are the size of a suitcase. This is the first of deal of its kind between the IDF and Polycom. The video systems will be used to relay high-quality video conferences from the battlefield to rear command centers.
Polycom’s video conferencing systems have been used by the IDF and many other organizations, and the latest contract will be the first time that such systems are used on the battlefield itself. Polycom produces unified collaborative communications (UCC) that improve the efficiency and productivity of people and organizations by integrating video, voice, data and web solutions. Supported by an open architecture, they integrate seamlessly with leading telephony and presence-based networks.
Published by Globes [online], Israel business news - www.globes.co.il - on October 23, 2006
IAI to supply UAVs to Indonesia
This is the first time that Israel and Indonesia have publicly disclosed an arms deal between the two countries.
Amnon Barzilai 22 Oct 06 15:41
Israel Aircraft Industries Ltd. (IAI) will supply unmanned aviation vehicles (UAVs) to the Indonesian army in a deal worth tens of millions of dollars. This is the first time that Israel and Indonesia have publicly disclosed an arms deal between the two countries.
Defending his country’s decision to select IAI as the supplier of its UAVs, Indonesian defense minister Juwono Sudarsono said, “The people of Israel are the offspring of the people of Abraham just like Muslims, so this does not pose a problem.”
The Indonesian army has purchased IAI’s “Searcher MK.II” UAVs, which are also in service in the IDF. They are to be deployed along Indonesia’s northern coastline to prevent attacks by pirate ships in the Strait of Malacca, which separates Indonesia from Malaysia.
Indonesia published an international tender for the supply of UAVs and received offers from 42 companies from all parts of the world. IAI and Airkot of Russia were two of the three companies that went forward to the final bidding stage. Indonesian teams visited Israel several times last year to assess the capabilities of UAVs built by IAI.
Published by Globes [online], Israel business news - www.globes.co.il - on October 22, 2006
Israeli solutions to guerilla threats spark interest
Systems by IMI and Rafael that might have aided the IDF in Lebanon are on display in Washington.
Ran Dagoni, Washington 11 Oct 06 16:44
Israeli solutions that could have provided answers to some of the most severe threats in the Iraq and Lebanon wars had the IDF and US Army been equipped with them, are attracting great interest at the Association of the United States Army (AUSA) 2006 Annual Meeting and Exposition in Washington. This is perhaps further evidence that armies always tend to prepare for the last war.
The AUSA Exposition is one of the world’s largest arms fairs, attracting hundreds of defense contractors from many countries, who display their lethal and protective wares. The exposition also attracts multitudes of military officers and defense officials from almost every nation, who come inspect the offerings and perhaps sign contracts, the smallest of which are in seven-digit figures.
Israel’s presence at this year’s AUSA Exposition is limited. Israel Aircraft Industries Ltd. (IAI), one of Israel’s top four defense companies, stayed home this year, which a senior company officer said was “mainly for budgetary reasons.” He added that IAI attended the 2005 AUSA exposition and a recent exhibition by unmanned aerial vehicle (UAV) manufacturers held in the US, so that the relevant professional entities had already seen the company’s products.
Rafael Armament Development Authority Ltd., Israel Military Industries Ltd. (IMI), Soltam Systems Ltd., and Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) subsidiary EFW Inc. were the Israeli participants at the AUSA 2006 Exposition.
One of IMI’s main attractions was its “Magic Shield”, which it portrays as a cheap, effective, and simple solution to the threat of Katyusha rockets. “Globes” first reported about the system on 29 September, one week before IMI unveiled it before the Ministry of Defense directorate of defense R&D. Developed at IMI Givon advanced systems division, Magic Shield is based on a rocket without a homing warhead or internal radar, which lowers production costs. A defense source told “Globes” yesterday that the rocket was redesigned for remote control and that thousands had been sold to foreign armies, although it was not deployed by the IDF.
The source added that Magic Shield could have intercepted short-range Katyusha rockets fired by Hizbullah against Safed or Kiryat Shmona had the changes in its capabilities been made on time. He said, however, “Before the war, deployment was against long-range ballistic missiles.”
IMI also displayed its “Iron Fist” active protection system for armored fighting vehicles. The Iron First is a direct competitor of Rafael’s “Trophy” active armor system, which the US Army rejected. Trophy is now being reevaluated following a report by Congress that sharply criticized the US Army’s procedures for selecting protective systems for its armored vehicles.
An IMI source told “Globes” that the US Army was evaluating a number of active armor systems and he hoped that it would also evaluate the Iron Fist. He said, “Magic Shield and Iron First are attracting a lot of interest at our pavilion. People are flooding us with questions about the systems’ capabilities. The great interest unquestionably is a result of the Iraq and Lebanon wars, which revealed weak points of modern Western armies.”
IMI displayed cluster shells with self-destruct capability. This munitions has attracted a lot of interest following international criticism of Israel’s use of cluster bombs in Lebanon, some of which are only now detonating, wounding people and damaging property.
The star of Rafael’s pavilion was the Trophy, as well as the company’s reactive armor, which the US military is using in Iraq. Rafael also displayed its SADS - acoustic small arms detection system, Spotlite - electro-optic small arms detection system, Thor - mobile counter-improved explosive device solution, SPIKE-ER - multi-purpose missile system for light combat vehicles and helicopters, GREM (Simon) - door breaching rifle grenade, Matador WB - wall breaching munitions, and Skylite B - man-portable, long endurance mini-UAV.
Published by Globes [online], Israel business news - www.globes.co.il - on October 11, 2006
Israel arms sales to India top USD 900 million a year
Israel is India's second largest arms supplier after Russia, Indian Defense Magazine reports
Arieh Egozi Published: 10.04.06, 20:54
India purchases USD 900 million in arms from Israel every year, Indian defense magazine, India Defense reported on its Web site.
The site reported that Indian Air Force chief Air Chief Marshal S P Tyagi and Navy vice-chief Vice-Admiral Venkat Bharathan lately paid secret visits to Israel to get updates on defense systems being developed in the Jewish State for the Indian Army.
The Indian Air Force chief reviewed the progress of the Phalcon early warning system project, which Israel is building for India at the cost of USD 1.1 billion.
The first of the three AWACS (airborne warning and control systems) are scheduled for delivery in November 2007, the site said.
Israel is India's second largest supplier of arms, only second to Russia which supplies USD 1.5 billion in arms to Delhi each year.
The site said India is relying on Israel for improved missiles and anti-missile defense systems.
"A wide array of missiles, ranging from Crystal Maze air-to-surface and Python air-to-air missiles to Popeye cruise missiles, have already been contracted or are being negotiated," sources told India Defense.
The Indian Navy is keen on replacing the Barak-I anti-missile system with new long-range surface-to-air-missile systems which are being developed in Israel.
India also plans to purchase more Aerostat radars to improve air defense capabilities.
"The final acceptance trials of the two Israeli Aerostat radars we got earlier are taking place in Gujarat and Punjab now. But, we need at least 10 more such radars. Though expensive, one Aerostat can substitute for 30-40 ground-based radars in providing three-dimensional low-altitude coverage," sources told India Defense.
http://www.ynetnews.com/articles/0,7340,L-3310835,00.html
Study: 66% of Israeli weapons production is for export
By Haaretz Service
A report published Monday finds that 66 percent of all weapons and weapons components manufactured in Israel are exported, and places four Israeli companies among the world's 100 leading arms manufacturers.
The report was published by the Control Arms Campaign, and was initiated by the international human rights organization Amnesty International.
The study, dubbed "Arms without Borders," also adds five other nations - Brazil, Inida, Singapore, South Africa and South Korea - to the list of top 100 arms manufacturers.
According to the report, global military spending will reach an unprecedented $1,058.9 billion by the end of the year, a sum roughly 15 times the amount spent on global humanitarian aid. This sum will break the global military spending record of $1,034 billion set in 1987, during the Cold War.
The report states that in 2005, the United States, Russia, the United Kingdom, France and Germany together accounted for an estimated 82 percent of all arms transfers.
http://www.haaretz.com/hasen/spages/769478.html
Congress okays joint project funding
By NATHAN GUTTMAN
WASHINGTON
The US Congress approved an increase of $460 million in funding for joint Israeli-American defense programs over the weekend, including $20 million for the development of a short-range ballistic missile defense system which will provide protection from Katyusha rockets.
The funding, approved as part of the defense appropriations bill, is double the amount the administration initially requested for joint projects.
It is not part of the foreign aid package which Israel receives annually.
The main component of the funding package is the Arrow anti-missile system, which will receive $135 million for coproduction of the system components in the US and for developing improvements.
The Arrow, which is intended to provide protection from medium- and long-range missiles, is gaining special importance due to Iran's threats to attack Israel and its known missile capabilities.
The bill will also provide funding for the Litening targeting and navigation pod, an Israeli development which increases the striking ability of aircraft.
According to sources in the US, this system is being used successfully by the US in Iraq for targeting and attack missions.
Two unmanned aerial vehicle (UAV) projects, the Hunter and the Pioneer, were funded with $35m.
Congress also gave final approval to a previous decision to provide $137m. for special tiles to protect Bradley armored fighting vehicles against anti-tank missiles.
The increased funding is seen as a major achievement for Israel.
Josh Block, spokesman for the American Israel Public Affairs Committee, said that "Congress is continuing its strong support for cutting-edge defense programs, which benefit both the United States and Israel and strengthen their strategic partnership."
http://www.jpost.com/servlet/Satellite?cid=1159193348715&pagename=JPost%2FJPArticle%2FShowFull
What a great idea! Sounds to me like they are measuring the stress level in the dogs bark.
I can tell the change in my dogs only because they have a happy bark when they chase bunnies and dear and such, but they bark different when they go into defense mood...
Very interesting!
Shalom Dubi!
Bio-Sense signs distribution agreement with Team 3
The three-year contract to market Doguard in Israel is worth an estimated NIS 7 million.
Gali Weinreb 28 Sep 06 17:50
Maayan Ventures Ltd. (TASE:MAYN) today announced that its portfolio company Bio-Sense Technologies Ltd. has signed a cooperation agreement with Team 3 Security Systems Ltd. to market the company’s Doguard system in Israel. Maayan said the three-year contract is worth an estimated NIS 7 million ($1.5 million).
The Doguard system analyzes the behavior of guard dogs, identifying situations in which the dog spots an attempted break-in. Dog’s sound the alarm by barking during unusual incidents, such as a break-in, the discovery of explosives, the fainting of a member of the family, and so on. The problem is that the person hearing the barking, either directly or via a monitor, does not always know why the dog is barking a dangerous intruder, or merely a cat.
Bio-Sense has developed technology that can decode the dog’s bark by monitoring the types of barks and various physiological markers during the barking.
Published by Globes [online], Israel business news - www.globes.co.il - on September 28, 2006
Rafael close to signing $239m deal with Indian Air Force
“Aviation Week”: Rafael will supply its Spyder short-range air defense system.
Amnon Barzilai 25 Sep 06 15:07
The Indian Air Force (IAF) is in advanced negotiations with Rafael Armament Development Authority Ltd. and MBDA of France for a $239 million contract to procure the Spyder SR short-range air defense system.
The Spider air defense system combines two types of air-to-air missiles developed by Rafael which have been converted into an air defense system. One missile is the Python 5, designed for short-range aerial combat; the other is the Derby, designed for medium-range aerial combat of up to 50 kilometers.
“Aviation Week” reports that the parties are waiting for the Indian cabinet’s defense committee to give final approval for the deal.
The Spyder will replace India’s current Russian-made OSA-AKM air defense system and the Strela-10M surface-to-air missile.
Rafael says the Spyder provides rapid response to air attack by planes, helicopters, and unmanned aerial vehicles (UAV), and is also effective in intercepting precision weapons. The Spyder is intended to provide air defense both for ground forces in the combat zone and for strategic sites. The Spyder’s two missiles are equipped with internal radar systems and a combined radar system made by Elta Systems.
The missiles are fired from a truck based launcher with four missile launchers, which can be fired simultaneously at different targets at different ranges. The missiles’ interception envelope is 1-15 kilometers, and at altitudes of 9,000-20,000 meters.
Rafael said that the company’s representatives were holding serious negotiations with Indian Ministry of Defence officials, but that it had not yet been notified if it had won the tender.
Published by Globes [online], Israel business news - www.globes.co.il - on September 25, 2006
IAF receives first new Gulfstream AWACS plane
Elta will install $500 million worth of the radar and command and control systems in all three planes.
Amnon Barzilai 19 Sep 06 16:28
The Israel Air Force (IAF) today received its first AWACS plane at a ceremony at Air Force Base 27 at Ben Gurion Airport. The Gulfstream G-550 plane is equipped with airborne radar systems made by Israel Aircraft Industries Ltd. (IAI) subsidiary Elta Systems.
Called the “Eitam”, the plane will be flown by the Nachshon squadron. It is the first of three Gulfstream G-550 AWACS to be delivered to the IAF over the next 2-3 years. Elta will install $500 million worth of the radar and command and control in the three planes, to be spread over several years. The Gulfstream G-550 planes were bought with US military aid money.
The Eitam will provide a comprehensive aerial picture of the combat zone, including identifying friend and foe aircraft, target acquisition, communications with other aircraft and with base stations. The plane’s system can handle large quantities of information in real time.
Published by Globes [online], Israel business news - www.globes.co.il - on September 19, 2006
Report: Rafael participates in Canadian armor tender
Rafael and General Dynamics Land Systems Canada are jointly offering Rafael’s Trophy active protection systems for Canadian Army APCs.
Ran Dagoni, Washington 17 Sep 06 11:48
“Defense News” reports that Rafael Armament Development Authority Ltd. is participating in a Canadian Ministry of Defense tender for active protection systems for Canadian Army armored personnel carriers (APCs). Rafael is offering its Trophy active protection system, less than a year after the US Army rejected the system.
Rafael is competing against Raytheon Co. (NYSE:RTN) in the Canadian tender. Raytheon beat Rafael in the US Army tender.
Rafael USA president and CEO Yigal Ben-Hanan says Rafael has joined forces with General Dynamics Land Systems - Canada, a subsidiary of General Dynamics Corp. (NYSE:GD), to participate in the tender. He said that Canadian officers were present during tests of the Trophy system at the US Naval Surface Warfare Center in Virginia on March 30. He said, “I believe that the Trophy will be the perfect active protection system for Canada’s military vehicles,” he said. “I think that this is the only system that has successfully demonstrated its capabilities in trials, in which it neutralized two RPGs fired simultaneously at the vehicle.”
Published by Globes [online], Israel business news - www.globes.co.il - on September 17, 2006
Plasan Sasa acquires US automotive composites company
Plasan's sales grew from $7.4 million in 2000 to $145 million in 2005
Globes Correspondent 13 Sep 06 11:20
Plasan Sasa has announced the acquisition of the automotive composites business of Vermont Composites, a US company located in Bennington, Vermont, a manufacturer of carbon fiber component parts for the automotive market.
According to Dan Ziv, CEO of Plasan Sasa, “The US is our largest market and this was an important strategic decision for us. This acquisition will provide Plasan with armor production capabilities in the United States and will enable us to deepen and expand our relationships with our U.S. customers and partners. We are also enthusiastic about the prospects of the automotive parts business and feel it will grow significantly in the future."
Plasan's sales grew from $7.4 million in 2000 to $145 million in 2005 - with more than 70 percent of the orders coming from the USA and Europe.
Established in 1985, Plasan Sasa develops, manufactures and assembles armor for lightweight military tactical trucks and APC’s, for fixed and rotary wing aircraft, commercial vehicles, and also supplies personnel protection armor
Published by Globes [online], Israel business news - www.globes.co.il - on September 13, 2006
“Aviation Week”: Israel to unveil armed UAV in 6 months
The IDF is developing a combined piloted and unpiloted operational concept to attack ballistic missiles.
Amnon Barzilai 13 Sep 06 17:09
“Aviation Week” reports in its latest issue that Israel will unveil a large armed unmanned aerial vehicle (UAV) in six months. The UAV is reportedly the Heron 2, with a weight of 1.8 tons and a 37-meter wingspan, the same as a Boeing 737.
“Aviation Week” adds that the IDF is developing a combined piloted an unpiloted operational concept to attack ballistic missiles in both the boost phase intercept (BPI) and boost phase launcher intercept (BPLI) stages. The weekly quotes an Israel Air Force (IAF) source as saying, “Merging the two missions is the way we are going. Each platform brings manned and unmanned relevant advantage. Developing only one tool or one platform is the wrong approach.”
“Aviation Week” also quotes a senior US Air Force (USAF) source as saying that the IAF reflects a tendency to rely on piloted combat aircraft because it believes that it must be as forward as possible on the front line and as close as possible to the battlefield. Both the USAF and IAF give flight leaders the freedom of action at the point of contact, within some limits, to make decisions unseen, rather than from centralized air operations centers. The source said that, in contrast, remotely operated UAVs do not fit that proven tactical doctrine.
Published by Globes [online], Israel business news - www.globes.co.il - on September 13, 2006
IAI, European partners successfully test new UAV
The Eagle’s most important feature is an automated take-off and landing system.
Amnon Barzilai 12 Sep 06 19:01
Israel Aircraft Industries Ltd. (IAI), European Aeronautic Defence and Space Company NV (EADS), and the French Ministry of Defense Arms Procurement Agency (DGA) successfully conducted the maiden flight of a new long-range mid-altitude unmanned aerial vehicle (UAV), called the Eagle. The Eagle is derived from IAI’s Heron UAV, which is in operational use with the Israel Air Force.
The Eagle was built under a $35-40 million development program begun three years ago. The Eagle’s most important feature is an automated take-off and landing system. When development is completed, France’s Ministry of Defense will decide whether to procure the Eagle for the French Air Force. IAI hopes that EADS will lead the marketing of the Eagle in other European countries.
In the test flight, the Eagle took off from a testing ground in southern France, carrying a complete satellite and line-of-sight communications system. The flight, controlled from a ground station, demonstrated the effectiveness of the UAV, especially its automated take-off and landing system, satellite communications and combined command and control capabilities.
The Eagle has a take-off weight of 1,250 kg. and can carry a payload of 250 kg. It has a 16.6-meter wingspan, a maximum altitude of 30,000 feet, a flight endurance of over 24 hours, and mission range of over 1,000 kilometers.
IAI’s partner in the Eagle program, EADS, is a global aerospace and defense leader It had €34.2 billion ($43 billion) in turnover in 2005 and has 113,000 employees in various European countries.
Published by Globes [online], Israel business news - www.globes.co.il - on September 12, 2006
Terrorist snakes on a plane
By Terry Paulson September 10, 2006
The sure-to-be cult classic, Snakes on a Plane, is now showing at a neighborhood theater near you. No doubt, a plane full of snakes would certainly be a frightening experience. Hollywood even makes the threat seem realistic.
After learning more about the terrorist suspects arrested in the United Kingdom and Pakistan, it's clear that there are many "terrorist snakes" eager to do more than generate fear. Instead of depending on Hollywood special effects, they planned on killing thousands of people 10 planes at a time. Evil again has a face, and our war on terrorism moved another step closer to American shores.
As a very frequent flyer, I've experienced my share of airport-screening experiences. After the recent terrorist plot was thwarted, airport security forces around the world went into action. As I arrived at the Columbus Airport, I was prepared for delays and new rules. I was relieved to find out that I could carry on my computer and briefcase, and I placed all liquids into my checked luggage.
As a man, it was easy - no perfume, lotions, gels or lipstick would get in my way. The TSA professionals checked my briefcase twice - at the initial screening and again before we boarded the plane. I passed screening without incident. There were no passenger complaints. We were all eager to safely get on our way.
Once on board, I noticed that I had left my small plastic bottle of Scope in my pocket! I had gone through all that security and still had a "liquid" with me. As I shared my discovery with my neighbor, we noticed the final passenger walking down the aisle. The older gentleman slowly made his way. On the outside netting of his carry-on, there was a clearly visible bottle of water. He had walked past security and the flight attendants without a problem. My neighbor and I decided that stopping liquids was not going to be easy for our security professionals.
Our security system is based on profiling possible weapons and stopping them from getting on board. Stopping metal box cutters and nail clippers was hard enough. Now, we're searching millions of travelers daily for items that our equipment can't detect.
Explosive charges can take almost any possible shape, color or smell and can be produced from a great variety of materials. Simple manual search is not enough. Thorough checks can take up to an hour for a single passenger with one checked bag. Such checks would bring our airlines to their knees!
There are very expensive screening units that can detect liquid substances, and dogs can be trained in days to detect certain liquids. But by the time such plans are in place, what is to stop terrorists from finding another weapon? After all, weapons don't kill people; people kill people. People are more constant than the weapons they use. It's time to switch from targeting weapons to profiling terrorists.
Unfortunately, terrorists don't walk through airports waving a banner announcing who they are, and profiling passengers is fraught with legal and ethical challenges. So how can airport security identify potential terrorists?
Capitalizing on expertise developed by Israeli police and Mossad intelligence experts, Israel's Suspect Detection Systems has developed an automated filtering tool for identifying potential suspects based on the belief that the terrorist's fear will be reflected in measurable psycho-physiological parameters.
With a success rate of 95 percent, the SDS-VR-1000 system uses artificial intelligence to imitate polygraph capabilities, making an initial assessment within three minutes. If the system identifies a suspect, that person is interviewed by a personal agent, completing the investigation. The automated system does not rely on ethnic or religious profiling.
When passengers approach the machine, they put their passport in a scanner and their other hand on a sensor. They respond to a series of written questions in the language indicated by the passport; an audio mode with earphones is also available.
The SDS-VR-1000A measures physiological responses. Based on their responses and the data, the passenger is either cleared for the flight or is referred for further questioning. They've created a single-minded machine with only one task: identify a terrorist.
This frees security personnel to invest their time in checking the "high-risk" passengers. The follow-up interviews, modeled to imitate those used in Israel, involve checking documents and asking questions regarding their journey and background.
Interviews can be as short as 90 seconds or as long as 20 minutes. The interview techniques used by Israel have been 100 percent effective in preventing terrorist attacks on airplanes for more than three decades.
Shabtai Shoval, the chief executive officer of SDS, confessed that this unique product could only have been developed in Israel's political climate, where terrorism is common. Are conditions in our war against terrorism bad enough yet for us to consider passenger profiling, or do we have to wait for 10 planes to be destroyed and thousands to die?
I'm ready. Are you?
(Originally appeared in The Ventura County Star)
http://www.israel21c.org/bin/en.jsp?enZone=Views&enDisplay=view&enPage=BlankPage&enDispW...
US airport security enters a 'new age' thanks to Israeli expertise
By ISRAEL21c staff September 10, 2006
Five years after the tragedy of 9/11, airport and rail security personnel are rapidly adopting an Israeli method for spotting terrorists by their body language.
Labeled SPOT - Screening Passengers by Observation Technique - the program, which has been introduced by the Transportation Safety Authority (TSA) in the US and the British Aircrafts Authority (BAA) in England, was devised by Rafi Ron, former chief security officer of the Israeli Airport Authority.
Ron is the founder and CEO of Maryland-based New Age Security Solutions (NASS) which was established shortly after 9/11 according to their website 'in order to answer the new emerging security needs of governments and private sector organizations'. The SPOT method is buit upon the gold ribbon security standards at Ben-Gurion Airport in Tel Aviv.
NASS's behavior pattern recognition program, which aims at recognizing terrorists through observation of their mannerisms, has caught on big time in an era in which metal detectors aren't the be all and end all to airport security. The methods include observing small movements of the lips, eyebrows and nose, to detect nervousness and suspiciousness.
"Terrorists have a characteristic of coming up with new inventive solutions. They overcome our technology. The TSA's strategy during the last five years has been almost purely technological. There's no human interaction," Ron told The Denver Post. "We must go back to the basic human-factor element and improve our performance in this realm."
The company started its activity with a major security revamp at Boston's Logan International airport immediately after 9/11, when the TSA began testing a version of SPOT. Ann Davis, the agency's Boston-based spokeswoman for the Northeast, told the LA Times that the Logan program "is a derivative of a program by the Israelis."
In the TSA version, uniformed officers in and around security checkpoints scan passengers for "involuntary physical and psychological reactions" that behavioral scientists say may signal stress, fear or deception. Officers also "may engage the passenger in casual conversation to observe the response," Davis added. If there are enough suspicious signs, the passenger may then be sent to secondary screening or questioned by police.
Since its initial testing at Logan Airport, the TSA version of SPOT has been tested in Portland and Bangor, Maine; Providence, RI; and Minneapolis-St. Paul. A TSA spokesperson said that TSA officers had been able to detect suspects who were arrested on such charges as smuggling drugs or possessing fake passports.
Over the summer, the TSA upped the ante further by announcing that it would train more than 500 "behavior detection officers," in SPOT techniques over the next two years.
In London, the BAA has started using the SPOT method at the Heathrow Express rail service, following a two-day training program for security personnel by Ron's staff. The trials have been so successful that the BAA was considering training all frontline staff at its seven airports, including 6,000 at security checkpoints.
Andrew Sharp, director of the International Air Rail Organization, said that Heathrow staff would attempt to engage in casual conversation with anyone who exhibited suspicious signs, such as sweating or a clenched fist. "They try to make friendly eye-contact and talk to the person to see if they react normally. If they feel unhappy about a person they can report them," he told The Times of London, adding that the techniques were less controversial than picking out passengers according to race or clothing.
Ron explained to Chief Security Officer MagazineSecurity systems that the lessons of 9/11 prompted the increasing popularity of the SPOT method, and insisted that it has nothing to do with racial profiling.
"[9/11] led us to the conclusion that it is not enough to look for things, we have to look for malicious intentions. They can be identified by a level of search and the other security procedures that could substantially mitigate the risk of a successful attack. So in [some] countries, specifically Israel, the solution to that is the vast use of profiling. The problem when it comes into the United States is that profiling is racial. It is not only unethical but it is illegal.
In addition, Ron explained that from his experiences while heading security at Ben Gurion Airport in Tel Aviv, racial profiling is not an effective way to single out terrorists.
"The major attacks at Ben Gurion Airport were carried out by Japanese terrorists in 1972 and Germans in the 1980s. [They] did not belong to any expected ethnic group. Richard Reid [known as the shoe bomber] did not fit a racial profile. Professionally as well as legally, I oppose the idea of racial profiling. So we are left with behavior, because behavior is probably the Achilles heel of the terrorist.
"In the Reid case, there were at least five crew members who later told me they had a suspicious feeling about Reid when he boarded the aircraft. The technology that was supposed to have dealt with the threat failed to do so. The clear conclusion from that is that when you [a terrorist] have to overcome a certain technological screening process, you can find a way to overcome it, but human behavior is where you will fail. Because a person carrying out a major terrorist attack that will probably end his life as well as the lives of many others cannot be in a sane state of mind. Even people who can control their behavior still fail to do so frequently. Crew members thought Reid looked suspicious."
According to Ron, behavior pattern recognition teaches that more objective criteria than racial profiling must be used that is focused on behavior.
"We provide the trainees with a great understanding of terrorist behavior. It is extremely difficult for people to disguise the fact they are under tremendous amount of stress, that they are going to kill themselves and a lot of people around them in a short amount of time, and all the other factors that affect their behavior."
http://www.israel21c.org/bin/en.jsp?enZone=Technology&enDisplay=view&enPage=BlankPage&en...
Defense contractors' privatization derailed by Amir Peretz's opposition
10.9.06 | 11:07 By Ora Coren
Israel Aircraft Industries and Israel Military Industries will not be privatized in the near future, say sources close to the cabinet.
Privatization moves were suspended because of tensions between Defense Minister Amir Peretz, who opposes privatization, and Finance Minister Abraham Hirchson and Prime Minister Ehud Olmert, in the wake of the war in Lebanon.
The sources say that in the interest of preserving the coalition, Hirchson and Olmert are unlikely to open another front against Peretz.
The sources also believe Peretz will continue to oppose the sale of the major defense contractors in order to garner the support of their huge unions in the next election.
Olmert, already on a collision course with the Labor Party chairman for the management and results of the war, will try to preserve his coalition. Hirchson, who should provide a tailwind to privatization agency Government Companies Authority, will likely avoid that role for the same political reasons.
Olmert and Hirchson will attribute the slowdown in privatization to the $150 million bond that IAI is slated to issue this year and that will finance its business activity for the year. Politicians are likely to pressure the GCA not to demand IMI repay a major loan, thus allowing it to continue operating and trying to improve its profitability.
In October 2003, the cabinet decided on a public offering of 33 percent of the defense contractor that was approved by the IAI board. IAI's recovery program has led to profitability in recent years, albeit minor.
Sources close to the company say it needs to be restructured and several hundred layoffs must be implemented to raise its profitability. However, the strong union and former CEO Moshe Keret torpedoed any pink slips. So far, there is an agreement on 150 early retirements, after 147 new hires in 2006.
IMI had been slated for sale to an outside investor, and several Israeli and foreign defense contractors have expressed interest. Reportedly, the state had hoped that Elbit Systems would buy IMI; however, former company chairman Ovadia Eli is believed to have hoped to delay privatization to improve profitability and boost the company's value.
Prior to the last elections, Peretz said he would oppose privatizing major defense contractors. In his first tour of IMI headquarters after the elections, Peretz announced he was reconsidering his predecessor's decision on the matter.
http://www.haaretz.com/hasen/spages/760814.html
>>According to press reports in Taiwan, Taipei has also
purchased arms from Israel. Among other things, Israel is said to have aided Taiwan in developing a 100-kilometer-range missile that would counter a missile threat from China. A report on GlobalSecurity.org claimed that if it were deployed, the Sky Horse missile would put the eastern part of mainland China within striking distance. >>
http://www.jpost.com/servlet/Satellite?cid=1154526039158&pagename=JPost%2FJPArticle%2FShowFull
Report: India to buy Israeli Spyder
By ASSOCIATED PRESS
NEW DELHI
India is set to purchase an advanced short-range air defense system from Israel to bolster its aging Russian-made equipment, a news agency reported Sunday.
India has agreed to buy the Spyder system, the Press Trust of India news agency reported, adding that the military was awaiting Cabinet approval for the deal worth about US $240 million.
The army plans to buy four batteries of the system, PTI quoted unnamed senior officers as saying.
Military officials were unavailable for comment Sunday.
The truck mounted system is made by Israel's Rafael armaments company. In India, the missiles would be mounted on locally made Tata trucks, PTI said.
The Spyder is designed to counter attacks by aircraft, helicopters, unmanned aerial vehicles and precision guided munitions, according to Rafael's Web site.
It uses a combination of two missiles, the Derby active radar missile and the Python 5, which uses infra red to track incoming objects, according to Rafael. The system's radar can track up to 60 targets at a time.
The company had no immediate comment on the purchase.
Israel has emerged as a leading arms supplier to India in recent years as it tries to modernize its large military.
In 2004, Israel agreed to sell three PHALCON airborne early warning systems to India. The US $1.1 billion dollar deal was Israel's biggest one-time sale of military hardware.
http://www.jpost.com/servlet/Satellite?cid=1154526041859&pagename=JPost%2FJPArticle%2FShowFull
New hope for Rafael tank protection system in US
The US Senate has ordered a reassessment of the “Trophy” active defense system.
Ran Dagoni, Washington 7 Sep 06 11:49
Several months after the US Army rejected Israel’s Trophy active armor system made by Rafael Armament Development Authority Ltd. in favor of a US system made by Raytheon (NYSE: RTN) the Senate has instructed Secretary of Defense Donald Rumsfield to bring in outside experts to reassess all US and non-US active defense systems.
Congressional sources claim that Senate decision is a slap in the face to the US Army. Other sources said the decision raised hopes that the Rafael would ultimately succeed in selling the Trophy in the US military market. Orders could amount to millions of dollars.
Yesterday, NBC aired an in-depth investigation into why the US Army preferred Raytheon’s active protection system, which will only be ready for operation deployment in five years, over the Trophy, which has already accumulated hundreds of tests. The findings are unflattering. NBC claims that there was too close collaboration between the Army and Raytheon, including the presence of Raytheon staff in the Army team that rejected the Trophy.
“Globes” and “Defense News” published initial information about the affair in April.
The US Army rejected the Trophy despite successful tests of the system at the US Naval Surface Warfare Center in Virginia on March 30. The Army rejected the Trophy even though the Army lacks an alternative active protection system available for its Stryker 8x8 combat vehicles operating in Iraq, and which are vulnerable to attacks from RPGs.
Published by Globes [online], Israel business news - www.globes.co.il - on September 7, 2006
Skyshield air defense being considered
By YAAKOV KATZ
With Hizbullah still in possession of more than 10,000 short-range Katyusha rockets, the Defense Ministry has contacted Lockheed Martin - one of the world's largest defense contractors - and asked it to run tests and make adjustments to a high-powered, rapid-fire cannon built by the company to intercept incoming aerial targets.
The Skyshield 35 Air Defense System is a cannon that fires a unique 35-mm. AHEAD (Advanced Hit Efficiency And Destruction) shell that destroys incoming targets. It ejects 152 sub-projectiles that are released just ahead of the incoming target up to distances of close to 10 kilometers.
The projectiles create a cloud ahead of the incoming rocket and penetrate it, inflicting enough damage to prevent it from striking its target. The system was developed by the Switzerland-based Oerlikon Contraves Corporation.
Initially developed to intercept incoming aircraft, and specifically unmanned drones, Lockheed Martin has been testing the system for the past few weeks to see if it is also suitable to intercept and destroy Katyusha rockets fired by Hizbullah. Before the war, the Defense Ministry had asked Lockheed to run tests to see if the system would be effective against the Palestinian homemade Kassam rocket.
The main changes that need to be made to the system are with the ammunition used to intercept the rockets.
According to officials close to the project, the quality and amount of explosives inside the shells need to be increased for the system to accurately intercept primitive rockets such as Katyushas and Kassams. The testing is expected to be completed in the coming weeks. Israeli defense officials have visited the US test site to watch the system's performance.
Hizbullah fired close to 4,000 rockets and missiles at northern Israel during the war.
Defense Minister Amir Peretz convened a meeting last week with senior defense officials and appointed Defense Ministry Director-General Gabi Ashkenazi to coordinate the defense establishment's efforts to find a quick answer to counter the Katyusha rockets.
But while Peretz has pointed specifically to Northrop Grumman's Skyguard land-based, air-defense system - also known as the Nautilus - as a possible answer, high-ranking defense officials have told The Jerusalem Post the system would not be chosen.
Some 10 years ago, Israel invested several hundred million dollars in the development of the system with the Hizbullah threat in mind, but the project was ditched after the defense establishment decided it was not suitable for Israel's needs.
Another possible answer to the Katyusha threat is the Vulcan Phalanx cannon, already installed on Navy missile ships and used to intercept incoming anti-ship missiles. Similar to the Skyshield, the Vulcan Phalanx cannon hones in on an incoming missile and shoots dozens of shells in a rapid-fire sequence.
The defense establishment is also considering using the Rafael-developed Barak antimissile system, which is used by the Navy.
http://www.jpost.com/servlet/Satellite?cid=1154526003804&pagename=JPost%2FJPArticle%2FShowFull
FMS plunges on delays in US flak jacket contract
The company said, in a notice to the TASE, that the US Army did not pass the final samples of its product.
Gil Shlomo 3 Sep 06 12:44
FMS Enterprises Migun (TASE: FBRT), controlled by Daniel Blum, published its financial report for the second quarter of 2006 last Thursday.
The notes to the financial statements reveal that the supply of flak jackets to the US Army has been delayed after the company’s main subcontractor on the project informed it that the product samples had not been given final approval by the US Army. FMS previously predicted that production of flak jackets for the subcontractor would generate monthly revenue of $1.3 million. Including the cost of raw materials the company’s monthly sales would total $4 million.
FMS believes that production will return to full capacity by the first quarter of 2007, provided that the product is approved and that production begins by mid-October this year. The company expects a deferral in revenue from the project and does not expect to meet the orders backlog forecast it made in its annual report.
FMS posted sales of NIS 72.9 million in the second quarter, down 13% on the preceding quarter. Net profit fell 58% to NIS 9 million. The company says that the decrease in revenue was caused by a change in revenue reporting method - sales to the primary customer are recorded net without attributing revenue, and recording costs for raw materials. FMS says that had these been included, sales volume would have been higher, compared with figures for the preceding quarter.
Last week, FMS distributed a dividend of NIS 27.5 million. FMS fell 19% in morning trading on the Tel Aviv Stock Exchange (TASE) today, and had the highest volume on the market.
Published by Globes [online], Israel business news - www.globes.co.il - on September 3, 2006
16 Israeli defense companies at Polish weapons exhibition
A year ago, the Israeli Ministry of Defense accepted an invitation by Poland’s minister of defense to sponsor the 2006 MPSO exhibition.
Amnon Barzilai 3 Sep 06 17:16
16 Israeli defense companies will participate in the 14th International Defense Industry Exhibition 2006 MPSO opening tomorrow in Kielce, Poland. A year ago, the Israeli Ministry of Defense accepted an invitation by Poland’s minister of defense to sponsor this year’s exhibition. Israel replaces France, the sponsor of the 2005 MPSO exhibition. SIBAT - Foreign Defense Assistance and Defense Export Organization is responsible for the 650-sq.m. Israeli pavilion.
The Israeli participants are Aeronautics Defense Systems Ltd., Azimuth Technologies Ltd., Beth-El Zikhron Yaaqov Industries Ltd.CI Systems Ltd., Control Precision Technologies Ltd., Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT), Hydro-Noa Ltd., Israel Aircraft Industries Ltd. (IAI), Israel Military Industries Ltd. (IMI), Motorola Israel, Rafael Armament Development Authority Ltd., Soltam Systems Ltd., Tadiran Communications Ltd. (TASE: TDCM), Tamor SMR Ltd. and Verint Systems Inc. (Nasdaq: VRNT).
The Israeli pavilion includes a wide range of systems for antiterrorist, homeland defense, coastal defense, and border control, including intelligence gathering and observation systems, unmanned aerial vehicles (UAV), communications systems, atomic, biological and chemical warfare kits, and search and rescue systems.
Published by Globes [online], Israel business news - www.globes.co.il - on September 3, 2006
Defense establishment favors Rafael tank protection system
Rafael’s system is less advanced than IMI’s Iron Fist, but it is at a more advanced stage of development.
Amnon Barzilai 29 Aug 06 17:29
52 IDF Merkava tanks were damaged during the war against Hizbullah in Lebanon. 50 tanks were hit by anti-tank missiles and two were damaged by roadside bombs, according to the Ministry of Defense Merkava tank program administration.
One lesson from the war is need to quickly provide Merkava tanks with active protection systems able to destroy incoming missiles. The Merkava tank program administration and IDF Ground Forces Command, which is responsible for weapons procurement, are monitoring two active protection systems for armored fighting vehicles: Israel Military Industries Ltd.’s (IMI) Iron Fist, and Rafael Armament Development Authority Ltd.’s Trophy.
A senior defense establishment source told “Globes”, “Although development of Iron First has made very good progress over the last two years, it is far less developed than Rafael’s Trophy system. On the other hand, the potential of IMI’s system is much greater than that of Rafael’s system.”
The Merkava tank program administration believes that, were it not for the risk of a new war, it might be better to wait for testing of Iron Fist to be completed, because it is considered more advanced. In order to create a critical mass of tanks able to deal with the threat of anti-tank missiles, one to two brigades (200 tanks) need to be equipped with active protection systems, at a cost of at least $100 million.
According to Merkava tank program administration figures, missiles penetrated 22 tanks, killing 23 crewmen. The missiles in these cases were heavy Russian-made RPG 29, Kornet E, Metis-M, and Concourse missiles, used by Hizbullah. These are tandem missiles, with a double warhead that can penetrate the Merkava’s reactive armor and steel plates 70-90 cm thick. Tests conducted on the damaged tanks indicated that Hizbullah had full information needed to identify the Merkava’s weak spots. 18 of the damaged tanks were the most modern Merkava Mark IV. Eight of the tanks were still serviceable, despite being hit.
The Merkava tank program administration said five of the damaged tanks cannot be returned to service, including two Merkava Mark II and one Mark III. The two tanks damaged by roadside bombs were a Mark II and Mark IV, which will not be returned to operational use. The Mark IV tank was equipped with underside armor, which prevented a large number of casualties among its seven-man crew; only the one soldier was killed.
18 of the 23 crewmen killed were in five tanks hit, half of them in clashes in Wadi Salouki. The Merkava tank program administration noted that when counting the tank casualties, it should be taken into account that some of the tanks hit were carrying additional troops in addition to their four-man crews, which increased the potential casualties. The tanks protected 90% of the soldiers they were carrying.
Published by Globes [online], Israel business news - www.globes.co.il - on August 30, 2006
Rabintex to supply ballistic helmets to US army
Manufacturer of defense equipment and military textile receives order worth USD 1.9-million from US, as part of project estimated at USD 250-million divided between four companies
Eli Shimoni
Rabintex, a company that manufactures military defense equipment and textile owned by the Rabinowitz family, announced that it received the authorization of an order from the United States army to produce and supply material worth USD 1.9-million.
The company will supply the US army with an advanced model of ballistic helmets. The company announced that it sees this as a confirmation of its participation in a project worth approximately USD 250-million that will be divided among up to four suppliers over a number of years.
It is estimated that Rabintex's share will amount to a total of tens of millions of dollars over five years.
As a result, Rabintex shares went up 8 percent in the energetic trade cycle in the Tel Aviv Stock Exchange. The company's shares are traded at a value of NIS 185-million.
Rabintex develops, manufactures and sells defense equipment, especially soft and hard ballistic defense equipment: Bullet-proof vests, plates and helmets.
http://www.ynetnews.com/articles/0,7340,L-3293563,00.html
Pentagon awards Rafael $1m for tank armor development
Competition between Rafael and IMI over their active protection systems is intensifying.
Amnon Barzilai 13 Aug 06 17:26
The Pentagon has awarded Rafael Armament Development Authority Ltd. $1 million for the development of active protection system, called “Trophy” ahead of possible trials on armored fighting vehicles (AFVs) operating in Iraq. Rafael Armament Development Authority Ltd. is now completing development of the Trophy for the IDF Land Forces Command, and is about to begin full production. After the war against Hizbullah, the IDF will decide on which types of AFVs it will install the armor.
Meanwhile, the Ministry of Defense has authorized Israel Military Industries Ltd. (IMI) to market its own active protection system, called “Iron Fist”, internationally. IMI is negotiating joint marketing agreements with a number of US companies.
Competition between Rafael and IMI over their active protection systems is reportedly intensifying. IMI claims that it cannot participate in a US Army tender because it obtained a Ministry of Defense marketing permit too late, two months after the trials in the US.
Rafael’s Trophy system includes threat detection and warning subsystem and countermeasures. In internal discussion, IMI CEO Avi Felder claimed that Iron First was better than the Trophy, because the Trophy only protected AFVs from antitank missiles, whereas the Iron First also provided solutions against hits by kinetic munitions (shells). He also claimed that Rafael’s threat neutralization system that destroys incoming missiles creates ricochets that fly dozens of meters at high speed, endangering friendly troops. In contrast, the Iron First uses shock waves to destroy incoming missiles.
On Friday, a defense source said that, were IDF Merkava tanks equipped with active protection systems today, many hits by antitank missiles fired Hizbullah fighters by could have been prevented.
Published by Globes [online], Israel business news - www.globes.co.il - on August 13, 2006
Defense Ministry to reexamine anti-missile laser
The decision was taken in view of the threat posed by Hizbullah attacks on strategic sites such as Oil Refineries Haifa.
Amon Barzilai 13 Aug 06 17:05
The Ministry of Defense has asked the US Department of Defense for information about the new model of the Skyguard Laser system for intercepting short-range Katushya and Kassam rockets. The letter, which listed a number of queries about the system, was sent by Ministry of Defense directorate of defense R&D head Brig.-Gen (res) Shmuel Keren on the instructions of Minister of Defense Amir Perez, and was forwarded to the Pentagon by Israel’s military attaché in Washington, Major General Dan Harel.
The decision to reconsider use of the Skyguard system was taken in view of the strategic threat posed by Hizbullah rocket attacks on strategic sites such as Oil Refineries and chemical factories in the Haifa Bay area. The latest model of the Skyguard is still on the drawing boards, so no evaluation of its performance can be made at this point.
In its letter the Ministry has requested, among other things, the following data: models prepared by the project’s main contractor Northrop Grumman (NYSE: NOC), that served as the basis for the determining of an effective target range of 6-8 kilometers; findings corroborating the determination that the system can provide a response not just to mass produced rockets but also those built using makeshift methods and which lack a standard aerodynamic structure; the rate of possible evasion of laser detection by isolated rockets which could then hit sensitive sites; and the ability of contractors to appropriate the requisite funding for completing the modeling technology, building operational systems, and completing the project within a predetermined timeline.
Sources inform ''Globes'' that Keren is the strongest opponent to the continued development of the laser system. Formerly Chief Artillery Corps. Officer, Keren has claimed in internal discussions that that it would not take long for a multiple rocket attack to expose the system’s saturation point. Having exposed this, Hizbullah or Hamas would simply step up their barrages next time round, in order to penetrate the system’s defensive shield.
Northrop Grumman said in response that it had managed to develop software that would enable surplus interception using existing radar systems, in a similar mode to the Green Pine system used by the Arrow anti-ballistic missile. This software can provide the radar system with retroactive data on the precise location of rocket launches and anticipated points of impacts, based on the characteristics of the trajectory of each Katushya or Kassam rocket.
According to its plan, Northrop Grumman will need $300-400 million to complete development and build a prototype of the Skyguard. The company said that the new model will retain the original effective target range of 6-8 km and that the development would be completed within 12-18 months. Each interception system will cost an estimated $30-50 million. Northrop Grumman has proposed that the laser systems be stationed near every sensitive site or densely populated town near Israel’s borders such as Sderot.
Published by Globes [online], Israel business news - www.globes.co.il - on August 13, 2006
Eltam to supply armored vehicle lighting to BAE Systems
The contract could be worth $10 million a year.
Amnon Barzilai 13 Aug 06 17:23
Eltam Ein-Hashofet Ltd. has signed a contract with BAE Systems (LSE: BA) to provide lighting for armored fighting vehicles (AFVs). The contract follows successful trials in which Eltam Light Emitting Diodes (LED) based dome light, emergency light, battery status indicator (LEBSI) was installed in US Army M2 Bradley armored fighting vehicle operating in Iraq.
Eltam marketing manager special projects Yaakov Shofar said the contract could be worth $10 million a year, and that several European countries, including the UK, France, Germany, Italy, and Finland were interested in the system.
Eltam’s AFV smart interior lighting was developed four years ago, on the basis of an idea by Sofer, and replaces the old single function incandescent dome light. It was recently installed in several models of the IDF Merkava tank.
BAE Systems director of survivability solutions Matt Riddle said, “The LED-based LEBSI represents an available and proven technology solution that addresses several urgent operational needs - increased safety, survivability, and reduced maintenance cost. It is a direct replacement for the 60-year-old plus legacy systems and provides much higher performance and capability.”
Eltam’s LEBSI costs $400 each.
Published by Globes [online], Israel business news - www.globes.co.il - on August 13, 2006
Which Travelers Have 'Hostile Intent'?
Biometric Device May Have the Answer
http://online.wsj.com/article/SB115551793796934752.html
>>
By JONATHAN KARP and LAURA MECKLER
August 14, 2006
At airport security checkpoints in Knoxville, Tenn. this summer, scores of departing passengers were chosen to step behind a curtain, sit in a metallic oval booth and don headphones.
With one hand inserted into a sensor that monitors physical responses, the travelers used the other hand to answer questions on a touch screen about their plans. A machine measured biometric responses -- blood pressure, pulse and sweat levels -- that then were analyzed by software. The idea was to ferret out U.S. officials who were carrying out carefully constructed but make-believe terrorist missions.
The trial of the Israeli-developed system represents an effort by the U.S. Transportation Security Administration to determine whether technology can spot passengers who have "hostile intent." In effect, the screening system attempts to mechanize Israel's vaunted airport-security process by using algorithms, artificial-intelligence software and polygraph principles.
Neither the TSA nor Suspect Detection Systems Ltd., the Israeli company, will discuss the Knoxville trial, whose primary goal was to uncover the designated bad guys, not to identify threats among real travelers. They won't even say what questions were asked of travelers, though the system is generally designed to measure physical responses to hot-button questions like "Are you planning to immigrate illegally?" or "Are you smuggling drugs."
The test alone signals a push for new ways to combat terrorists using technology. Authorities are convinced that beyond hunting for weapons and dangerous liquids brought on board airliners, the battle for security lies in identifying dangerous passengers.
The method isn't intended to catch specific lies, says Shabtai Shoval, chief executive of Suspect Detection Systems, the start-up business behind the technology dubbed Cogito. "What we are looking for are patterns of behavior that indicate something all terrorists have: the fear of being caught," he says.
Security specialists say such technology can enhance, but not replace, existing detection machines and procedures. Some independent experts who are familiar with Mr. Shoval's product say that while his technology isn't yet mature, it has potential. "You can't replicate the Israeli system exactly, but if you can incorporate its philosophy, this technology can be one element of a better solution," says Doron Bergerbest-Eilon, chief executive of Asero Worldwide consulting firm and a former senior official in Israel's security service.
To date, the TSA has more confidence in people than machines to detect suspicious behavior. A small program now is using screening officers to watch travelers for suspicious behavior. "It may be the only thing I know of that favors the human solution instead of technology," says TSA chief Kip Hawley.
The people-based program -- called Screening Passengers by Observation Technique, or SPOT -- began undergoing tests at Boston's Logan Airport after 9/11 and has expanded to about a dozen airports. Trained teams watch travelers in security lines and elsewhere. They look for obvious things like someone wearing a heavy coat on a hot day, but also for subtle signs like vocal timbre, gestures and tiny facial movements that indicate someone is trying to disguise an emotion.
TSA officers observe passengers while consulting a list of more than 30 questionable behaviors, each of which has a numerical score. If someone scores high enough, an officer approaches the person and asks a few questions.
"All you know is there's an emotion being concealed. You have to find out why the emotion is occurring," says Paul Ekman, a San Francisco psychologist who pioneered work on facial expressions and is informally advising the TSA. "You can find out very quickly."
More than 80% of those approached are quickly dismissed, he says. The explanations for hiding emotions often are innocent: A traveler might be stressed out from work, worried about missing a flight or sad because a relative just died. If suspicions remain, the traveler is interviewed at greater length by a screener with more specialized training. SPOT teams have identified about 100 people who were trying to smuggle drugs, use fake IDs and commit other crimes, but not terrorist acts.
The TSA says that, because the program is based on human behavior, not attributes, it isn't vulnerable to racial profiling. Critics worry it still could run afoul of civil rights. "Our concern is that giving TSA screeners this kind of responsibility and discretion can result in their making decisions not based on solid criteria but on impermissible characteristics such as race," says Gregory T. Nojeim, associate director of the American Civil Liberties Union's Washington legislative office.
Mr. Shoval, the Israeli entrepreneur, believes technology-based screening is the key to rolling out behavior-recognition techniques in the U.S. With experience in counter-terrorism service and the high-technology industry, Mr. Shoval developed his Cogito device with leading former Israeli intelligence officials, polygraph experts and computer-science academics.
Here is the Cogito concept: A passenger enters the booth, swipes his passport and responds in his choice of language to 15 to 20 questions generated by factors such as the location, and personal attributes like nationality, gender and age. The process takes as much as five minutes, after which the passenger is either cleared or interviewed further by a security officer.
At the heart of the system is proprietary software that draws on Israel's extensive field experience with suicide bombers and security-related interrogations. The system aims to test the responses to words, in many languages, that trigger psycho-physiological responses among people with terrorist intent.
The technology isn't geared toward detecting general nervousness: Mr. Shoval says terrorists often are trained to be cool and to conceal stress. Unlike a standard lie detector, the technology analyzes a person's answers not only in relation to his other responses but also those of a broader peer group determined by a range of security considerations. "We can recognize patterns for people with hostile agendas based on research with Palestinians, Israelis, Americans and other nationalities in Israel," Mr. Shoval says. "We haven't tried it with Chinese or Iraqis yet." In theory, the Cogito machine could be customized for specific cultures, and questions could be tailored to intelligence about a specific threat.
The biggest challenge in commercializing Cogito is reducing false results that either implicate innocent travelers or let bad guys slip through. Mr. Shoval's company has conducted about 10 trials in Israel, including tests in which control groups were given terrorist missions and tried to beat the system. In the latest Israeli trial, the system caught 85% of the role-acting terrorists, meaning that 15% got through, and incorrectly identified 8% of innocent travelers as potential threats, according to corporate marketing materials.
The company's goal is to prove it can catch at least 90% of potential saboteurs -- a 10% false-negative rate -- while inconveniencing just 4% of innocent travelers.
Mr. Shoval won a contract for the Knoxville trial in a competitive process. Next year, Israeli authorities plan to test Cogito at the country's main international airport and at checkpoints between Israel and the West Bank, where the goal will be to catch genuine security threats while testing the logistics of using the system more broadly. The latest prototype costs about $200,000 a machine.
Even though his expertise is in human observation, U.S. behavior-recognition expert Dr. Ekman says projects like Cogito deserve a shot. He expects technology to advance even further, to devices like lasers that measure people's vital signs from a distance. Within a year, he predicts, such technology will be able to tell whether someone's "blood pressure or heart rate is significantly higher than the last 10 people" who entered an airport.
<<
Turkey cancels USD 500 million deal with aircraft industry
Turkey scraps deal with Israel Aircraft Industries to upgrade aircraft in protest at Lebanon offensive
Aryeh Egozy
The war deals a severe blow to Israel Aircraft Industries: The Turkish government has canceled a deal to upgrade fighter jets worth USD 500 million because of the war in Lebanon.
The Israel Aircraft Industries fears that more deals could be canceled.
In 1997 Turkey signed an agreement with Israel for the upgrading of 54 Phantom aircraft at the cost of USD 1 billion.
The deal was concluded in 2003 and Turkey showed interest in upgrading another 50 Phantom jets for USD 500 million.
Turkey is weighing the purchase of new F-16 jets from the United States instead of upgrading its old fleet.
"They are old costumers, and the cancellation of the deal is a very bad sign," a senior military official said Monday.
The Israel Aircraft Industries refused to comment on the decision.
Turkey's interest in Israeli military products has long been considered as a "goldmine" in Israel.
"Turkey was conceived as a replacement for South Africa and Iran, who were big customers of Israeli weapons," he said.
Since the war in Lebanon opposition parties in Turkey have increased pressure on the government to cut military ties with Israel.
http://www.ynetnews.com/articles/0,7340,L-3288072,00.html
Dubi
IAI loses $1.5b South Korea AWACS tender
IAI unit Elta Systems was disqualified because it lacked US export licenses for key systems.
Ron Paz 3 Aug 06 17:27
Israel Aircraft Industries Ltd. (IAI) and its Elta Systems Group subsidiary have suffered a heavy blow. The South Korean Ministry of Defense has disqualified Elta’s proposal to supply four AWACS plans, worth $1.5 billion. The decision leaves Boeing (NYSE:BA) as the sole proposal in the tender, and brings to an end the year-long prestigious head-to-head confrontation.
The decision was taken during a meeting of the South Korean Defense Acquisition Program Administration (DAPA) supreme decision-making, chaired by Minister of Defense Yoon Kwang-ung. The discussions have been dogged by heavy lobbying by the parties in the tender, who hired lobbyists and invested heavily in efforts to win the tender.
A DAPA spokesman said the official selection would be announced in September, but Elta’s disqualification leaves Boeing the winner. The spokesman said Elta had a number of opportunities to submit export licenses from US for key items, but failed to do so. Boeing reportedly is asking $1.7 billion for supplying four AWACS planes based on the Boeing 737.
Elta was offering an AWACS system on the Gulfstream 550 executive jet platform. Elta’s main advantage was in its price, which was substantially less than Boeing’s offer. Elta also had the support of the South Korean government and President Roh Moo Hyun, who has been trying for several years to reduce South Korea’s dependence on US defense products. On the other hand, the US has strong political influence over its South Korean ally, and 37,000 US troops are stationed there.
The US export licenses, the lack of which were the cause of Elta’s disqualification, were essential for parts of the AWACS system developed in cooperation with the US government. These systems included data links for automatic exchange with other aircraft and satellite communications (satcom) ground stations.
The South Korean media has depicted Israel in poor light in the war in the north and Lebanon, and public opinion did not help Elta in the AWACS tender.
Elta declined to comment on the report.
Published by Globes [online], Israel business news - www.globes.co.il - on August 3, 2006
Dubi
Rafael wins $103 million RAF contract for Litening targeting pods
The company is also negotiating deals with the Spanish and German airforces and has sold 600 pods to date.
Amnon Barzilai 2 Aug 06 16:59
Rafael Armament Development Authority Ltd. has won a $103 million contract to supply the RAF with 20 Litening airborne surveillance and targeting pods for its Eurofighter Typhoon aircraft. The company is also negotiating further deals for the supply of Litening pods to the Spanish and German airforces.
The Eurofighter Typhoon is built by Eurofighter GmbH, founded by four countries, Germany, Italy, Spain and the UK, to service their air forces. The Eurofighter Typhoon was initially designed for air superiority. However, before serial production of the aircraft got underway, the RAF decided, on the basis of combat experience in Iraq and Afghanistan that it needed a ground attack aircraft.
Rafael’s Litening pod is a navigation and targeting pod installed under the aircraft’s wing. Considered the best of its kind worldwide, the pod provides the flight crew with air-to-ground targeting capability. It can be used both during day or night time, in all climates. The litening is installed on the US Air Force’s F-16 aircraft and was used in the operation to track down and terminate the Al-Qaeda terrorist Abu Musab Al Zarqawi.
Rafael has entered into partnership agreements for local manufacturing of the Litening pods with companies in all of the four countries which will install the pod on their aircraft. Its partner in Germany will be Carl Zeiss, while the Spanish partner is Indra.
Published by Globes [online], Israel business news - www.globes.co.il - on August 2, 2006
Dubi
IAI anxious as S. Korean AWACS decision postponed again
The unofficial reason for the delay: The resignation of the head of South Ministry of Defense’s Defense Acquisition Program Administration on suspicion of unbecoming conduct.
Amnon Barzilai 1 Aug 06 16:40
The Republic of Korea’s Ministry of Defense has again postponed its decision on the winner between Israel Aircraft Industries Ltd. (IAI) and Boeing (NYSE: BA) for the supply of four AWACS planes for the ROK Air Force. The ministry said the postponement was needed in order to carry out additional study of the proposals by the competing companies, adding that the delay was only for a few weeks.
The unofficial reason for the postponement is a scandal that erupted in South Korea over the resignation of the Defense Acquisition Program Administration (DAPA) director Kim Jeong-il ten days ago. Reports in the South Korean media claim that Kim unexpectedly resigned because of suspicions that he accepted benefits from defense contractors.
IAI is represented in the South Korean AWACS tender by its subsidiary, Elta Systems Group, together with General Dynamics Corp. (NYSE: GD), the maker of Gulfstream executive jets. Reports based on sources in the South Korea’s Ministry of Defense claim that IAI’s bid is preferable to Boeing’s for two reasons. One is that IAI’s $1.2 billion bid is $500 million less than Boeing’s. The second is the air platform. South Korea’s Ministry of Defense believes that Gulfstream executive jets provide a more suitable AWACS platform for the country’s needs than the Boeing 737. The final word rests with South Korean President Roh Moo-hyun, who will base his decision on the conclusions of the professional inter-ministerial committee headed by the minister of defense.
The latest postponement has changed the mood at IAI from optimism to gloom about the new trend at the South Korean Ministry of Defense. Despite better Israeli technology, lobbying by the US to declare Boeing the winner is beginning to bear fruit. Boeing has the strong support of the US administration, which is calling on the South Korean government not to ignore the close economic and security ties between the two countries, when selecting the winner in the AWACS tender, and to give preference to US technology.
Published by Globes [online], Israel business news - www.globes.co.il - on August 1, 2006
Dubi
More on the aborted laser project…
http://www.nytimes.com/2006/07/30/world/middleeast/30laser.html
>>
U.S. and Israel Shelved Laser as a Defense
July 30, 2006
By WILLIAM J. BROAD
Ten years ago, in a preview of the current Middle East crisis, Hezbollah guerrillas fired hundreds of Katyusha rockets into Israel. The attacks prompted President Bill Clinton and the Israeli prime minister, Shimon Peres, to agree to develop a futuristic laser meant to destroy the rockets in flight.
But last September, after spending more than $300 million, the United States and Israel quietly shelved the experimental weapon, mainly because of its bulkiness, high costs and poor anticipated results on the battlefield.
“Frankly, its performance was not great,” said Penrose C. Albright, a former Pentagon official who helped initiate the project. “Under certain conditions you can make it work. But under salvo or cloudy conditions, you’ve got problems. In northern Israel, about 30 percent of the time, you’ve got a cloud deck.”
He and other military experts say the aborted project is a case study in the challenges of building antimissile weapons and the consequences of failure. Today, northern Israel remains defenseless against the Katyushas and other small rockets.
The project to build an anti-Katyusha shield, called the tactical high energy laser, was approved by the United States and Israel in April 1996. The next month, a California contractor, TRW, won an $89 million contract to design, build and test the laser in just 22 months. Aided by Israel and the United States Army, TRW worked hard at the White Sands Missile Range in New Mexico to make the novel idea come to life.
Skeptics on Capitol Hill faulted the effort from the start, calling it seductive but doomed because of the would-be weapon’s size, complexity and vulnerability to enemy attack.
“It was a sitting duck,” recalled Subrata Ghoshroy, who studied the project in 1996 for the House International Relations Committee and now analyzes military issues at the Massachusetts Institute of Technology. The rupture of its fuel tanks, he said, would have produced clouds of corrosive acid, endangering defenders as well as nearby civilians.
Roughly the size of six city buses, the prototype weapon was made up of modules that held a command center, radar and a telescope for tracking targets, the chemical laser itself, tanks to feed it tons of fuel and a rotating mirror to bounce its beam toward speeding targets.
As often happens in the federal development of death rays, parts failed and costs soared. A March 1999 report by the General Accounting Office found that valves leaked, releasing toxic fluids, and that the laser’s test schedule was slipping.
“Technical problems and their associated program delays,” the Congressional investigators said, “demonstrate the complex nature of developing laser weapons.”
In June 2000, more than two years behind schedule, the laser flashed to life at White Sands and succeeded in destroying an armed Katyusha in flight. Soon, it shot down two dozen more rockets, though military officials say its testers never challenged its sensors and laser beam with more than two Katyushas at a time.
Pentagon officials praised the effort as the first with the potential to turn flashing beams of concentrated light into a weapon suitable for antimissile defense. Contractors hailed the laser’s ability to defeat salvo launchings. But the system was ultimately judged as too costly, feeble and unwieldy for battlefield use.
Yiftah S. Shapir, a military analyst at the Jaffee Center for Strategic Studies at Tel Aviv University, said one guerrilla with a rocket launcher could fire 40 Katyushas in less than a minute, easily overwhelming most any defense. He added that shooting the laser just once would have cost roughly $3,000, and that “protecting the whole border of Israel would have required a few dozen of these systems,” their cost running to billions of dollars.
David Siegel, a spokesman for the Israeli Embassy in Washington, said, “The program was terminated because of its prohibitive costs.”
Some politicians have criticized the decision. Yuval Steinitz, a Likud member and former chairman of the Foreign and Defense Committee of the Israeli Parliament, called the move shortsighted. “It was a serious mistake for Israel not to give top priority to efforts to create rocket and short-missile defenses,’’ he said.
Dr. Albright, the former Pentagon official, now an analyst at Civitas Group, a defense consulting and investment firm in Washington, said the decade-long effort to develop the laser weapon had an unhappy moral.
“There’s not much you can do against rockets,” he said, “except control the launch area or go into shelters.”
Today, the experimental laser sits in storage, its maintenance costing more than $1 million a year, said Scott McPheeters, an Army official in charge of the project at the Aviation and Missile Command.
<<
Security industries concerned over transaction cancellations
Since Hizbullah hit navy gunboat, security industries flooded with requests for explanations from overseas customers who are considering canceling transactions. Source in security industries: Majority of failures derived from lack of knowledge on part of factories – but difficult to explain that army simply didn't activate system
Arye Egozi
The security industries are worried about IDF's latest failures to activate early-warning systems in the war against Hizbullah in the north of the country. "This is likely to hurt our sales abroad," said a senior official from the security industries Tuesday.
Since a Hizbullah missile hit an IAF gunboat in the first week of fighting, the security industries have been flooded with petitions from international clients demanding explanations about monitoring and control systems said to prevent friendly fire incidents and about various munitions.
"Throughout the years, we have explained to our clients that our systems are the best in the world. But along comes a war and some of the systems simply aren't bringing the goods. It's difficult to explain that the navy simply didn't activate the systems," noted the senior official.
'I can't say due to security considerations'
According to him, some of the mishaps were caused by incorrect operation of the systems. In the meantime, security industries are saying that all the incidents will be checked thoroughly. However, one source said Tuesday that at a certain point there will be no escaping pointing at certain problems being cause by a lack of know-how on the part of the factories.
Some of the questions of overseas clients were in reference to systems already in operational use by armies around the world. For instance, appeals were received by at least one fleet that is operating the Barak missile system on Saar-5 multi-mission corvettes of the navy.
Additional questions were received about RPV (remote-piloted vehicle) drones manufactured in Israel. "They asked why the RPVs aren't detecting the Katyusha launchers," said someone in the industry.
Also advanced attack systems found on combat planes such as the F-16 were a subject of questions. "They wanted to know if we have used to systems. I was comfortable saying in a few instances that I don't know, or that I can't say due to security considerations," said the same man. Questions have also referred to defense: "The hit on the tank on the first day of fighting brought up many questions. I'm not sure that the issue stops here," he summed up.
http://www.ynetnews.com/articles/0,7340,L-3281524,00.html
Dubi
Rafael wins follow-on order to protect US Bradleys in Iraq
The order is worth $55 million; Rafael has also been given an option on a similar follow-on order for the US Army.
Amnon Barzilai 25 Jul 06 16:07
Rafael Armament Development Authority Ltd. has won a contract worth $55 million to supply US forces in Iraq with add-on armor systems for M-2 Bradley Armored Fighting Vehicles (AFV). The company has also been given an option on similar follow-on order. Rafael received formal notification of the order from the Pentagon last week. Bradley AFVs have been in service in Iraq since the beginning of the war. Since the beginning of the war three years ago, Rafael has provided more than $100 million worth of armor protection systems to Bradley vehicles in Iraq. It also won an additional contract to supply protective systems for amphibious armored personnel carriers for US Marine Corps also stationed in Iraq.
The supply by Rafael of add-on armor systems has been made possible through an arrangement with General Dynamics (NYSE:GD), which signed a $130 million contract with the Pentagon. The arrangement was set out by the US administration which informed Rafael management that the procurement of its systems was conditional on its cooperation with a US company. Under the agreement, General Dynamics receives the order from the US Army and shares the production and revenue with Rafael. Rafael is listed in the agreement as the professional and technical authority and accordingly, it transferred to General Dynamics the requisite know-how for manufacturing the systems.
Rafael supplies an add-on armor suit containing explosives, which was developed by its Ordinance Systems division. The explosive material detonates when struck by advanced weapons such as anti-tank missiles. The US airlifts the systems directly to Iraq, where they are added onto the basic armor on US armored troop carriers. The product, which Rafael based on a German patent, was first installed on Israeli combat vehicles including advanced models of the Merkava tank. Rafael is considered a leader in this technology, at least in the West.
Published by Globes [online], Israel business news - www.globes.co.il - on July 25, 2006
Dubi
US Senate grants Israel $25m to develop anti-Katyusha missile
The first year of development is being jointly funded by the Pentagon and Israel.
Amnon Barzilai 23 Jul 06 18:04
The US Senate Committee on Appropriations has approved a $25 million appropriation for developing a missile to intercept short-range ballistic missile and long-range Katyusha rockets. The appropriation for the first year of development was jointly made by the Pentagon and Israel. The program is called short-range ballistic missile defense (SRBM), or mini-Arrow. Raytheon Co. (NYSE:RTN) and Rafael Armament Development Authority Ltd. will jointly build the anti-SRBM missiles.
The Senate Committee on Appropriations was told that the Ministry of Defense’s Homa project wanted to develop an SRBM defense against missiles and launchers possessed by Hizbullah and Syria with ranges of 20-200 kilometers, including Katyushas, and the Fajer and Zilzal missiles, as well as the Iskander missile that Syria wants to buy from Russia. The system will not be effective against short-range Katyushas of up to 15 kilometers. Defense of Israeli communities along the northern border and the Gaza Strip, as well as along the eastern border will require a different solution.
Thanks to US administration support for Israel’s response, and because the US defines Hizbullah as a terrorist organization, the Senate Committee on Appropriations approved the request in full, but made the first year’s development of the SRBM defense subject to Israel providing matching funds. The IDF General Staff was due to discuss its development budget and five-year procurement plan this month, but postponed the discussion because of the war. The Homa project estimates the development and initial procurement of the system at $500 million.
Published by Globes [online], Israel business news - www.globes.co.il - on July 23, 2006
Dubi
Followers
|
7
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
322
|
Created
|
09/23/05
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |