Sources inform “Globes” that Chinese company Nuctech signed a contract this week to carry out a $10 million turnkey project for two container inspection systems at the Karny crossing between Israel and the Gaza Strip. This is a joint Israel-Palestinian Authority project to solve the backlog of containers waiting to be scanned The contract was signed by Comodan Far East president and CEO Amos Yudan and Ministry of Defense official Naftali Getter. Comodan represents Nuctech in Israel, and Yodan is also chairman of the Israel China-Hong Kong Chamber of Commerce and vice chairman of the Israel-Asia Chamber of Commerce.
Yodan said the agreement was reached after lengthy negotiations, and after Nuctech representatives, who visited Israel recently, met the requirements set by the Ministry of Defense and Israel Airports Authority, which is responsible for operating border crossings. In the past three years, a number of Israeli delegations visited China to examine the systems.
Sources involved in the deal said the Palestinian Authority is expected to fund part of the project, which will be the first one jointly funded by both parties. Under the turnkey project, Nuctech will build the structures at Karny, install all the command and control systems, and provide the Chinese container scanning equipment.
Nuctech will work with two Israeli companies on the project: Lesico Engineering Ltd. for the construction work; and Eltel - Technical and Logistics Services Ltd. a subsidiary of the Elul group, controlled by chairman and CEO David Kolitz, for work on the command and control systems. Nuctech will operate the systems during a three to four-month trial period, after which the Airports Authority will take over.
Nuctech has a turnover of $300 million a year. It is owned by Tsinghua University and private investors. Nuctech is expanding rapidly, providing container inspection equipment to over 30 countries. The son of Chinese President Hu Jintao, who took over from Jiang Zemin in 2003, heads Nuctech.
Published by Globes [online], Israel business news - www.globes.co.il - on February 10, 2005