Tadiran Group to expand renewable energy activity

Tadiran top executives credit: Ilan Lorenzi
Tadiran top executives credit: Ilan Lorenzi

The company is building an aluminum factory to manufacture profiles for solar energy arrays and acquiring 70% of Arava BSS Building Skin Solutions.

Tadiran Group (TASE: TDRN) is expanding the renewable energy arm of its activities. To achieve this, the company is building an innovative aluminum plant to manufacture aluminum profiles for the construction of solar energy arrays as well as for the industrial market. The aluminum plant will join the current manufacturing activities of Tadiran, which so far include its plant in Afula for developing and manufacturing air-conditioners, which was founded in 1981, and Tadiran’s solar energy activities in the field of processing of construction for solar energy systems carried out in Kiryat Gat.

For the first time in 30 years a new aluminum plant will be built in Israel

Tadiran says that the work processes in the new factory will be innovative and environmentally friendly. The production line makes use of natural gas together with activation of controllers that will optimize and regulate energy supply to machinery according to use, a system that aims to bring about "green" and more energy efficient manufacturing processes. The entire manufacturing process is also automatic.

Tadiran has invested NIS 27 million in the new plant, which extends over thousands of square meters. The company estimates that the plant will allow Tadiran to reduce the volume of profiles that it imports for its renewable energy activities. Maximum production capacity for the plant, which is expected to begin operations in the second half of 2023, should reach about 800 tons of aluminum profiles per month and will allow shorter supply times for customers and flexibility in manufacturing customized profiles for needs in Israel.

Near the new plant, Tadiran has established a northern branch of Tadiran Solar, the subsidiary that markets solar energy arrays, which adjoins the company's site in Kiryat Gat. The new northern branch will allow contractors from the north of the country to receive products more easily and more conveniently and will contribute to improving accessibility and services to the company's customers.

As part of Tadiran’s vision to provide an overall and broad package of solutions in thew field of energy, the company has announced that it has purchased 70% of the shares of Arava BSS Building Skin Solutions Ltd., which specializes in the engineering design and implementation of cladding buildings and curtain walls and together with this activity has begun a pilot project in the field of cladding using building integrated photovoltaic panels (BIPV), a technology that originated in Israel. The pilot project has not yet been completed and so at this stage the company does not have proven results from the pilot trial. The aluminum profiles that will be manufactured in Tadiran's new aluminum plant are intended, among other things, for use in construction for solar energy arrays, in which Tadiran Solar is an anchor customer for the activity, and the company also plans to examine the manufacture of aluminum profiles for the installation of building integrated photovoltaic panels (BIPV) as well as for the installation of curtain walls and aluminum cladding.

Arava’s revenue in 2022 amounted to about NIS 14.5 million, with gross profit for 2022 amounting to about NIS 3.5 million and operating profit for 2022 amounting to NIS 1 million.

Arava is a privately owned company with major experience in the building cladding industry at the engineering design and implementation level of projects that it leads. Among its customers are construction companies, building contractors and more. Among the main projects that it has led are Beit Innovate at the Hadassim Junction, and the Intel building in Kiryat Gat and the company is currently carrying out full cladding of the new BIG shopping center in Gedera.

Tadiran Group deputy CEO Snir Sharon said, "The deal with Arava is in line with the growth engines set out in the company's strategic plan for the coming years. Tadiran will leverage its capabilities along the entire value chain and provide a holistic solution for smart energy management, by using systems for producing electricity from the sun that include building-integrated panels and/or solar panels to be placed on roofs, energy storage systems, and electric vehicle charging stations. As a company with its roots in Israel, we are always looking ahead, and we will continue to be a major player in the field of renewable energy in Israel thanks to our innovation, knowhow and expertise."

Tadiran Aluminum CEO Avi Greenblum added, "Tadiran Aluminum’s new plant is proud blue and White Israeli, which meets high standards while adhering to the strictest regulations. The plant is also equipped with the most advanced technology in the field. The plant will allow flexibility in manufacturing customized aluminum profiles and so will be able to provide broader and more accessible solutions for Tadiran Group companies and other customers in the industry."

Tadiran's energy division was established three years ago and in 2022 its revenues accounted for about 53% of the group's revenues. Tadiran's new energy division offers a wide portfolio of products and services that includes, among others, solar energy systems, energy storage systems, uninterruptible power systems and electric vehicle charging.

Published by Globes, Israel business news - en.globes.co.il - on August 9, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

Tadiran top executives credit: Ilan Lorenzi
Tadiran top executives credit: Ilan Lorenzi
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