Lockheed-Martin to use Israeli systems in Israel Navy tender

The IDF plans to procure two or three missile frigates, after canceling plans to upgrade the Saar 5 frigates.

Lockheed-Martin (NYSE:LMT) will install Israeli systems in Aegis class missile frigates that it is offering in its bid in an Israel Navy tender.

The IDF plans to procure two or three missile frigates, for both offensive and defense anti-missile missions. The Israel Navy decided to cancel its original plan to upgrade its Saar 5 missile frigates and adapt them to anti-missile defense missions.

The Ministry of Defense Procurement and Production Directorate has published a request for information (RIF), and stated that it wanted to buy two ships in the first stage, with an option on a third.

Lockheed-Martin announced that it would participate in the tender. Northrop Grumman (NYSE:NOC) will probably head a second US consortium that will also participate. The tender could be worth up to $2.4 billion, if Israel selects a frigate with the latest technologies. If Israel chooses to buy only the basic ship at $250 million each, the tender will be worth $500 million.

Lockheed-Martin's submitted its bid through an international consortium that offers ships on the international market. Other companies in the consortium are the Bath Ironworks shipyard, owned by General Dynamics (NYSE:GD) and Spain's Izar. The consortium offers various classes of ships equipped with 1-Spy radar systems.

Israel wants warships for its forward line of defense from aerial threats, which will be integrated with the Arrow anti-ballistic missile defense system in a coordinated defense array.

Published by Globes [online] - www.globes.co.il - on November 25, 2003

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