Israeli Defense Cos Unveil New Products In Eurosatory 2014

The continuous fighting by the IDF against terrorist organizations, and the frequent clashes in urban areas are among the explanations for the capability of Israeli companies in precision weapons and warning and discovery systems. “The exhibition isn’t even open yet, and we already have a very long list of military representatives who have scheduled personal meetings, merely on the basis of the announcements about what we will display there,” Elbit Systems president and CEO Bezhalel Machlis told “Globes”.

80% of Elbit Systems’ production is exported. Despite the extensive cutbacks in defense budgets around the world, the company is convinced that a customer will pay handsomely for a relevant product that meets both a proven battlefield need while delivering substantial cost savings. “The market is changing in terms of both threats and budgets, and this exhibition is an important opportunity to reveal relevant concepts that have passed the necessary adjustments,” says Machlis.

IAI challenges Elbit Systems on land

Elbit Systems is a veteran in the land warfare business. Until now, its rivalry with IAI was mostly for unmanned aerial vehicles (UAV). If this fierce competition for UAV contracts around the world were not enough, in the coming years, the rivalry between two companies will heat up further following IAI’s efforts to gain a foothold in the land warfare systems business. This effort was highlighted by the appointment of Maj.-Gen. (res.) Eyal Ben-Reuven as IAI Land Systems chief coordinator a few weeks ago.

IAI executives say that the target is for land systems to generate a quarter of the company’s revenue within ten years. “The land battlefield is growing stronger, and we are giving it, strategically, a central place in our activity,” says IAI president and CEO Joseph Weiss. “We don’t just sell products; but complete solutions on the basis of our cumulative comprehensive knowhow, which in some cases in unique in the world.”

IAI’s efforts include showing possible foreign customers visiting its Eurosatory pavilion a system for immediately and accurately hitting multiple targets at varying ranges, state-of-the-art communications network security systems for forces in the field, including cyber protection, and more. “Outstanding technologies we’ve amassed in different fields in the past are being adapted, such as our new Green Rock radar that provides tactical protection for forces in the field from incoming rocket, artillery and mortar fire. This system meets the needs of all forces undertaking routine combat low-intensity operations. It is based on larger radar systems that IAI developed in the past,” says Ben-Reuven.

IMI, for which land systems is its natural environment, plans to surprise with its newly developed intriguing armored fighting vehicle – the Bodyguard, which carries a small number of troops to a variety of battlefields.

“For us, Eurosatory is primarily an event to be seen at. Precisely because defense budgets are shrinking in the world, we’re offering more products. An exhibition of this size is one of many marketing venues,” says IMI CEO Avi Felder. “We don’t count the orders or summarize the total deals at the end of the exhibition, because that not how it works. This isn’t a bazaar where you come to look, buy, and take home. We operate here for the long term, by showcasing some of our many products that meet the latest needs of the world’s armies.”

Rafael Advanced Defense Systems Ltd., which established a land combat systems division as part of a restructuring last year, will again proudly display its Iron Dome system at the Eurosatory. It will also display its integrated control system for Spike missiles remote controlled firing platforms. Various versions of the Spike tactical missile are used by dozens of Western armies.

As for defense cuts, Rafael VP Land Combat Systems Giora Katz says, “There has been an improvement in procurement budgets in some places. I think that there is a window of opportunity for change in view of various events in the world and economic recovery in some countries. We cannot rule out that some countries took their belt-tightening too far in the past few years and we’ll see higher defense procurements in the next couple of years.”

Yuval Azulai