ELTA Outsourced $150 Million Electronics Manufacturing Deals to India
21 December, 2012
Part of the outsourcing works were delivered to Sanmina plant in Chennai, India. This is a surprising amount of offshore contracts for critical defense systams
Elta was beleived to keep its critical electronics production inside Israel
Elta Systems, a subsidary of Israel Aerospace Industries (IAI), outsourced more than $150 million to EMS providers in India during the last year. The total number assumes to be bigger, since this number applies to the Microave Division of Elta alone.
Techtime has learned this fact from a letter sent a month ago from Elta to the Israeli headqourter of Sanmina-SCI in Lod, Israel. Part of the outsourcing works were delivered to Sanmina plant in Chennai, India. It is a surprising amount of offshore production, since many people in the industry beleive that critical degense systems production remains in Israel.
Elta Systems is a worldwide powerhouse in the developments and production of Radar systems. The company developed and supplied the Israeli MOD the Radar systems for Arrow, the long range missile interseptor, and the Radar for Iron Dome system, that protected Israeli cities against shrt and medium range missiles launched by the Hamas from Gaza.
The letter mentioned above was sent to Sanmina on November 22, in an attempt to change its strategic descision to close its electronics production facility in Lod, Israel in the beginning of 2013. Shutting down the plants means 300 employees layoff, and maybe losing production contracts with local defense organisations such as Elta, Rafael and others. Elta accounts for 29% of IAI sales. During the first nine month of 2012 its revenues totaled approximately $700 million.