IAI Asian Arms Deal at $1.6b, But Not With India
A massive arms deal between the IAI defense firm and an Asian client was believed -- and so reported last week --to have been with India. But it wasn't. According to the Globes business news agency which originally had reported the India connection, this contract is the largest ever signed in the company's history. Israel National News also erroneously reported India as the client in the transaction.
The $1.1 billion transaction, which in the space of a week has jumped to a $1.6 billion deal, is with a completely new customer. This is allegedly the first time this country has signed a contract with Israel Aerospace Industries – which in itself is proof the deal is not with India.
At the request of the customer, details about the identity of the client nation are being kept confidential by both IAI and the defense establishment.
Last week IAI issued a brief notice to the Tel Aviv Stock Exchange regarding the first stage of the deal to sell a range of military equipment to the unnamed country for a sum of $1.1, over a period of four years. The type and details of the systems to be supplied were not provided at the time.
According to a report published over the weekend by Globes, the present, second stage of the deal – involving half a billion dollars, was signed after IAI completed procedures to ensure guarantees.
The deal reportedly will include supplying unmanned aerial vehicles (UAVs) sea-to-sea missiles and hi-tech radar systems. Among those will be included the Green Pine, a component of the Arrow anti-ballistic missile system, produced by IAI subsidiary Elta Systems.