IAI signs 2 Italian contracts for $932m

IAI will supply the Italian Air Force with two G-550 Gulfstream airborne early warning planes and an observation satellite.

Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) signed two contracts to supply Italy with a reconnaissance satellite and two Gulfstream early warning planes, as part of the Ministry of Defense's agreement with the Italian government for the supply of 30 Alenia Aermacchi jet trainers for the Israel Air Force.

As part of the reciprocal procurements by Finmecchanica SpA (BIT: FNC) for the $1 billion jet trainers deal, IAI will manufacture and supply to the Italian Air Force two G-550 Gulfstream Conformal Airborne Early Warning & Control Systems (CAEW), ground support Systems, and logistical support for $750 million. It will also build and supply an observation satellite for $182 million.

IAI president & CEO Joseph Weiss said, "Italy is an important European country and we are proud of strengthening our relationship with it. The Airborne Early Warning aircraft and the observation satellite are two of IAI's strategic products. Beyond the financial and occupational aspects, this deal represents a significant collaboration with the European industry."

Published by Globes [online], Israel business news - www.globes-online.com - on July 22, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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