German port equipment manufacturer Kocks Krane International has undertaken to make reciprocal procurements in Israel worth € 3.85 million during the next three years, announced the Ministry of Industry, Trade and Labor industrial cooperation authority on Monday. The undertaking was made following the acquisition by Ashdod Port Company Ltd. of two dock cranes from Kocks Krane for €13.7 million.
Industrial cooperation authority director general Bina Bar On said, “The inclusion of a clause committing to reciprocal procurement as precondition for the approval of contracts for foreign companies selling goods and services to government authorities in Israel has proved to be a catalyst for joint business ventures.”
The Kocks’ cranes is Ashdod Port’s first reciprocal procurement since becoming a government company. Kocks Krane will make reciprocal procurements totaling €3.85 million through subcontractors during the next three years, which will include orders for subsystems, machine parts, and electrical and mechanical components of cranes.
Bar-On added that Kocks Krane had been cooperating with Israeli companies for several years and had accrued considerable experience in executing reciprocal procurement through local Israeli subcontractors. Its business dealings in Israel include joint ventures and procurement from Israel Shipyards, electrical work and supply of equipment to Afcon Industries (TASE: AFIN1; TASE;AFIN5), procurement of radio accessories from Motorola Israel and assembly work for Avi Cranes.
Published by Globes [online], Israel business news - www.globes.co.il - on April 5, 2006
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