Auctions in South Korea for $ 50 Million – Global Markets

IAI announces that the company has won tenders in South Korea in the amount of about $ 50 million. These are three tenders in the field of aircraft improvement in the southern peninsula, which include improvement of systems in 3 different aircraft for the South Korean Air Force.

The process of improving avionics in aircraft includes the conversion of an old aircraft, replacing part, or all, of the old avionics system of the aircraft with new and advanced systems. The new aircraft has new and higher quality performance, in order to meet the challenges of military and civil aviation.

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IAI’s VP of Aviation and Director of Aviation, Yossi Melamed: “The recent wins in tenders in South Korea are a clear expression of the Korean Ministry of Defense’s trust in the aerospace industry. An aviation division has set itself the goal of expanding its operations in South Korea, both as a supplier and as a customer. And other collaborations in the field of aviation. “

As you may recall, in November, the Ministerial Committee for Privatization approved a move to issue IAI minority shares – a move that the Companies Authority began promoting about 25 years ago. The move is expected to take place in the first half of 2021.

The expected IPO was made possible after the company’s workers’ committee withdrew its opposition to the move in exchange for agreements with the Ministry of Finance regarding the abolition of the demand for refunds from thousands of workers who received higher wages than the government wage rating.

IAI is a business company, one of the largest exporters in the economy (annual sales of about NIS 14 billion, of which about NIS 10 billion for exports to about 90 countries around the world), operating in a highly competitive international market (the Aerospace & Market). Defense) where huge companies such as Boeing, Lockheed Martin and more operate. Most of the prominent companies in the company’s areas of activity do not have a government holding and most of the companies are traded.

In recent years, the aerospace industry has undergone a business transformation and as part of it has presented record profits and growth, despite the corona crisis. In order to continue this trend and establish the continued growth of the company and face the challenges it faces in the medium and long term, it is necessary to constantly invest in research and development, enter new markets, and acquire companies. It also requires a competitive ability to absorb quality candidates on short schedules and promote employees to competitive wage levels in the market. The offering will serve these purposes and expand the Company’s financing options.