Sources inform “Globes” that ECI telecom (Nasdaq:ECIL) is negotiating to acquire a Chinese company, which would enable ECI to carry out R&D and manufacturing in China. ECI already has a joint marketing venture in China.
Sources also inform “Globes” that ECI, controlled by Koor Industries (NYSE:KOR; TASE:KOR), is considering moving part of software activities to India, through an Indian subsidiary now being set up.
ECI has recently won Indian contracts and has activities in that country worth tens of millions of dollars, which are expected to expand considerably in 2005.
ECI CEO Rafi Maor told "Globes" in response, "ECI's management has not made any decision regarding these changes, but the company is considering carrying them out as part of its strategic plan to expand its activities in new and other product fields."
Maor added, "ECI hopes that the new investment encouragement law will have a better-than-expected end, and that R&D budgets will increase, because government criteria are making conditions in Israel impossible. In any event, the company will not close its R&D center in Israel."
The cost of software experts and engineers in China, India and Russia is $50,000-60,000 a year, compared with $90,000 in Israel, Ireland and Canada, and $150,000 in the US. ECI employs 60 software engineers in Russia.
Published by Globes [online] - www.globes.co.il - on November 9, 2004