During the war, the Israeli Ministry of Defense contacted local defense companies, large and small, and asked them to transfer supplies to other countries in favor of the war effort. Two senior defense officials “Globe” said that unlike other countries, the Philippines did not accept the sympathetic demands of the Israeli Ministry of Defense, despite the complex situation in the Middle East. This led to expressed tensions in exchanging messages and clarifications between high -ranking officials in both countries.
The delay, resulting from what was essential for Israeli defense companies, put one of the largest companies in this industry, Defeense Electronics Elbit Systems Ltd. (Nasdak: Eslt;; level:Eslt), In a difficult position versus the Philippines-one of the most important customers in the Israeli defense industry.
The Israeli Ministry of Defense: “The case has been settled to understand the two sides.”
Most Israeli defense agents accepted the necessary delays in the delivery operations due to the war, and the Ministry of Defense in 2024 with an unprecedented amount of purchases, which total 220 billion New, of which 170 billion NIS with Israeli companies – four times the normal quantity. But the Philippines were not sympathetic to the fact that they were the products they needed will not be received on time.
The data of the Stockholm International Peace Research Institute (SIPRI) shows that between 2019 and 2023, Israel was the ninth largest defense exporter in the world. According to the data, India bought 37 % of these Israeli exports, and the Philippines ranked second by 12 %.
The Ministry of Defense does not deny the embarrassing situation in which they found themselves with the Philippines, and told us “Globes”, and during the war, we were asked to make amendments to the defense supplies to a number of countries, due to the operational needs of Israel.
Despite the political tensions created by the delays in delivery operations, a senior industry official believes that there are no long -term consequences for the government to request Manila for the products of Israeli defense companies. This, for example, is reflected in the announcement of shipbuilding basins in Israel in December over the delivery of the SHALDAG 5, as part of the deal, which includes nine ships of shipbuilding basins and was signed in 2020 for about $ 200 million.
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The biggest threat to the Philippines, as well as other countries in the region, is China. The Philippines and all countries adjacent to the South China Sea have disputes with the Chinese on the borders of their economic waters. This position led the Philippines to purchase a set of products of Elbit systems.
According to “Defeense News”, Elbit Systems is the highest company in Israel in the 100 best defense companies in the world. It ranked 22nd in 2023, over companies such as Rolls -Royce in the United Kingdom, General Electric in the United States, and France Naval Group. Since then, the revenues of the Israeli Israeli defense industry have grown.
The increase in domestic demand due to the war, ELPIT revenues from Israel in the first nine months from 2024 to $ 1.39 billion, representing 28 % of its total revenue. In the corresponding period of 2023, local revenues represent 17 % of total revenue. The increase in requests from Israel is a comprehensive process, but among the competing companies, there was a more moderate increase. In ISrael Aerospace Industries (IAI), for example, the revenue share from Israel increased from about 29 % in 2023 to about 34 % last year (about $ 1.52 billion).
The increase in the proportion of Israeli purchases from Elbit and IAI from the policy of the Ministry of Defense represented in increasing the self -sufficiency of Israel. Consequently, in recent months, Elbit has received, among other things, a value of $ 200 million, as part of the expansion of Iron Beam laser air defense system, $ 280 million to produce heavy air weapons and build a raw material factory.
A senior industry official from another company expresses his admiration for the “fake business machine” during the CEO of Bezhalel Machlis, who led the company for more than a decade. “Paisalel works to control the entire chain personally – this flows. All senior executives of Elbit are sits physically in the Ministry of Defense, given that it must be the closest thing to the customer.”
Done -aircraft error and supply problems to Switzerland
Elbit is currently facing two conflicting issues. On the one hand, the demand for the company’s products is constantly reflected in the requests. On Monday, the company announced that a European country had chosen it to provide a national center to combat digital fires, which will be connected and integrated with strategic and tactical firefighters in the country. As part of the new contracts, which are worth about $ 100 million, ELPIT will provide an advanced multi -weapon fighting solution.
However, the delay in the delivery of the company has also received negative propaganda. In January, the Swiss media reported a great delay in delivering six Hermes 900 drones to Switzerland. According to the same report, the Federal Parliamentary Finance Committee, the body responsible for overseeing the budget of the Swiss state, sent a letter to Defense Minister Viola Alyed, a warning that ELPit drones were not advanced enough and lacking basic technology. The letter added that the Swiss government defense company is required to program it accordingly.
This was a deal approved by the Swiss Parliament again in 2015, but so far four drones have been delivered, and it is likely to work only in 2029, instead of 2019. Development, “writing that the” discovery and avoidance system “system. It includes “large risks in terms of technical feasibility, licensing and costs.
Elbit Systems has also occupied newspaper headlines for another accident: Indian Drishti 10 Starliner UAV, which is produced in cooperation with the security arm of Adani Corporation as a local version of Hermes 900, was established near the border with Pakistan due to a malfunction. Drones, which reach a medium height and have long -range, entered a service with the Indian navy last year. In this case, the error was discovered, according to a report at The Hindustan Times, during the final tests before being delivered to the navy.
“Elbit works in dozens of countries through local companies that have ministries of armies and defense, which express the full confidence in the company. Despite the war, the adbit commitment first and foremost the Irish Union, Elbit sought further with customers The company, according to the binding contracts, to meet the tables and the dates of delivery, in coordination with the company’s customers.
It was published by Globes, Israel Business News – En.globes.co.il – on February 11, 2025.
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