ECONOMIC SURVEY
April 21, 1994 (COMMUNICATED BY GPO ECONOMICS DESK)
HEADLINES:
* JAPANESE TEXTILE FIRM JUKI EXAMINING INVESTMENT IN ISRAEL.
Earlier this week, the president of the world's largest producer of
industrial textile machinery arrived on a visit to Israel to examine the
possibility of doing business with local textile manufacturers. This
comes in the wake of expanding opportunities in China and India, which
has created an interest in new equipment purchases on the part of
Israeli textile-makers. (Ma'ariv, 17.4.94)
* EGYPTIAN DELEGATION OF ELECTRICITY EXPERTS EXPECTED TO ARRIVE SOON TO
INSPECT CONNECTING ELECTRICITY GRIDS.
Connecting electricity grids would save Israel $200 million. Plan
including Jordan as well, being examined. (Ha'aretz, 21.4.94)
* ISRAEL AIRCRAFT INDUSTRIES TO ESTABLISH TRAINING CENTERS IN AFRICA.
IAI's Mahut plant, which is responsible for the concern's training and
documentation activities, will establish a complete training center for
an African country's air force. At this stage, there will be an
investment of $3.5 million. If the plan is carried out in full, the deal
will be worth more than $17 million. (Yediot Ahronot, 21.4.94)
* MI HOLDINGS EXAMINING ADDITIONAL SALE OF SHARES IN BANK HAPOALIM AND
BANK LEUMI ABROAD.
MI Holdings, the Government's holding company set up for holding bank
shares after the 1983 bank shares crisis, is examining the possibility
of selling packages of shares abroad. The holding company would sell the
shares either through private placements or bids primarily to
institutional investors, mostly in Europe. The shares are being prepared
to be traded again on the Tel Aviv Stock Exchange, after being taken off
the exchange in 1983. The amount of shares would be between 10 to 20
percent. (Ha'aretz, 21.4.94)
PEACE ECONOMY:
* HAIFA FIRM TO ESTABLISH FLOUR MILL IN GAZA FOR $25 MILLION.
Interdeco of Haifa will build a plant in the Gaza Strip using Italian
technology and know-how. The firm plans to set up the facility, which
would be able to supply 600 tons of flour daily, for a businessman from
Dir al-Balah. The Italian Government is supplying the technology as part
of its program of contributing to Palestinian economic development in
the Palestinian Autonomy areas in the Gaza Strip. (Ha'aretz, 18.4.94)
FOREIGN TRADE:
* SELLING RUSSIA EVEN ... VODKA.
Orbis, a company founded in 1992 by three Russian immigrants Israel,
reported doing more than $10 million in sales to the CIS republics in
1993. For this effort it was awarded a 1993 'New Importer' award by the
Absorption Ministry. Orbis' founders include a mathematician, a computer
expert, and an engineer, all between the ages of 40-50. The company
exports local food products including Telma, Osem, Biskol, Vered
Hagalil, Carmel Mizrachi, and Wissotzky to the CIS. Orbis also reports
that Russians tend to buy only products with English label products, and
shy away from products with Russian labels. Total Israeli exports to the
CIS reached $190 million last year, up from $70 million in 1992, with
much of the trade being stimulated by new immigrants from the CIS,
according to the Ministry of Industry and Trade. (Yediot Ahronot,
21.4.94)
* AUSTRALIA, FRANCE, US NAVY ALL INTERESTED IN REMOTELY PILOTED VEHICLE
BY SILVER ARROW.
The Silver Arrow Partnership's Hermes 450, an RPV developed for medium-
range purposes, was flown in a demonstration last week for both local
and foreign guests. The Hermes 450, revealed publicly for the first time
at February's Singapore air show, is participating in the US Department
of Defense's medium-range Unmanned Aerial Vehicle tender, according to
Elbit and the Federman family, the two partners in the Silver Arrow
partnership. Denmark is also reportedly interested in the Hermes 450.
The vehicle is valued at about $400,000 with an entire system, including
ground station, costing nearly $3.5 million. (Globes, 18.4.94)
* ISRAELI DELEGATION GOING TAIWAN TO ESTABLISH JOINT VENTURE CAPITAL
FUNDS.
Ya'akov Pas, Israel's economic attache in Taipei, reports there would be
no problem in raising tens of millions of dollars to invest in Israeli
R&D. The delegation is scheduled to leave in a few weeks and will
include government officials, as well as representatives from the Israel
Export Institute, Manufacturers' Association, Clal, and Israel Discount
Bank. The group will be looking to establish three new funds in the Far
East, following a decision made last month by Trade and Industry
Minister Micha Harish during his visit to China. (Ma'ariv, 17.4.94)
* GENERAL MOTORS EXAMINING SETTING UP FACTORY TO ASSEMBLE CARS IN
ISRAEL.
General Motors executive vice president and general counsel Harry
Pearce, accompanied by GM subsidiary officials Lester Alberthal,
chairman of EDS, and Michael Smith, Hughes Electronics vice chairman,
are visiting Israel this week to look into opportunities for cooperation
with Israeli firms. The plant for assembling vehicles would be for
distribution in the Middle East, according to Pearce. This is the first
visit of senior officials from the large multinational. (Ma'ariv,
21.4.94)