Klil Industries Ltd. (TASE: KLIL) will manufacture products under license from US aluminum manufacturing corporation Alcoa Inc. (NYSE: AA). Klil will market its products to builders of luxury high-rises.
Alcoa is has a market cap of $30 billion and is traded at a profit multiple of 13.5. The market for aluminum products for high-rises worth an estimated $500 million with 140 high-rises due to be built in Israel in the coming years, most of them in Tel Aviv.
Klil CEO Arie Richtman said he believed that Klil would take at least 20% of this market. The company currently has a marginal share of the market and has begun to expand its global presence with sales of hurricane protection paneling in Florida, a market worth billions of dollars. Klil is set to expand its sales into Tenessee and South Carolina.
Richtman added, "We have finally managed to bring to Israel the largest company in the world, whose products were previously imported on a limited basis only. Our penetration of the high-rise market will be on the basis of a case-by-case model. We will ask the developer and architect on each project what sort of they systems they want, and we will then tailor an existing Alcoa system or develop a unique one of our own accordingly."
Published by Globes [online], Israel business news - www.globes.co.il - on March 11, 2007
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