ECONOMIC SURVEY - 24-Nov-96

24 November 1996

(COMMUNICATED BY GPO ECONOMICS DESK)

GOVERNMENT SECTOR:

* INDUSTRIAL BUY-BACKS WITH EUROPEAN FIRMS REACH $350 MILLION IN 1995.
European firms with buy-back agreements with Israel purchased $350 million worth of Israeli goods in 1995, up from $175 million in 1992, the Industrial Cooperation Authority in the Industry and Trade Ministry reported. As part of its efforts to increase European awareness of Israel's buy-back potential, the Authority hosted the visit last week of senior representatives from the Swiss firm Landis & Gyr, who during their visit to various Israeli factories requested product price bids.
Industry and Trade Ministry - Haya Peri, 972-2-6220340

MACRO-ECONOMIC SECTOR:

* HOUSING STARTS DOWN 27% FOR FIRST NINE MONTHS OF 1996
Housing starts were down by 27% to just over 37,000 during the first nine months of 1996, compared to the same period in 1995, the Central Bureau of statistics reported. Total building under construction starts were down 20%, as compared to the first nine months of 1995, to 7.5 million cubic meters, the CBS reported. However, during the third quarter of the year, housing starts were up by 20% to 13,620 and total building under construction starts were also up, by 11% to 2.7 million cubic meters.
Central Bureau of Statistics - David Neumann, 972-2-6553400

* MEDIUM SIZED COMPANIES WERE LARGEST CONTRIBUTORS TO RISE IN EXPORTS BETWEEN 1991-1995.
An increase in exports by medium sized firms made the largest contribution to Israel's rise in exports during the years 1991-1995, according to the Israel Export Institute. Exports by medium sized concerns equalled 40% of the increase while large corporations contributed 31% of the growth and small enterprises 29% of the increase.
Israel Export Institute - Dan Bloch, 972-3-5100687

* 61% OF EXPORTS BY LARGE CORPORATIONS IN 1995.
Large corporations (sales of over $30 million) contributed approximately 61% of all exports in 1995, though they only equalled 1% of all exporters, the Israel Export Institute reported. Medium sized firms ($2-30 million in sales) contributed 31% of all exports, and comprised 8% of all exporters, while small enterprises ($1-2 million in sales) contributed 3% of all exports, and composed 4% of all export companies. Start-up firms (sales of less than $1 million) contributed 5% of all exports and 87% of all exporters.
Israel Export Institute - Dan Bloch, 972-3-5100687

DEFENSE INDUSTRIES SECTOR:

* ELTA TO SELL $100 MILLION WORTH OF EQUIPMENT TO WESTERN EUROPEAN NATION.
Israel Aircraft Industries subsidiary Elta reported it has signed a contract to supply a Western European country with $100 million worth of communications intelligence systems. The multi-year contract is a renewal contract. (Ha'aretz, 21.11.96, p.C6)

FOREIGN TRADE:

* ISRAEL AND TURKEY TO COOPERATE IN CENTRAL ASIAN MARKETS.
Israeli and Turkish firms are scheduled to hold a series of meetings next month in Istanbul in order to create a framework for cooperation in exporting to the Central Asian Republics of the CIS. The effort to broaden trade cooperation into these republics was initiated by the Israel Export Institute and Turkey's DEIK, the umbrella group for industrial organizations.
Israel Export Institute - Dan Bloch, 972-3-5100687

* 25% OF ISRAELI WAVE ACTION ENERGY GENERATION TECHNOLOGY COMPANY SOLD TO AMERICAN INVESTMENT FIRM.
S.D.E., an Israeli firm which has developed a patented energy generation technology from sea waves, reported an un-named American investment firm has purchased a 25% equity share of the firm for $5 million. SDE also reported that firms from India, Australia, and Oman are also interested in investing in the firm in order to build a model. The firm's technology is registered with the U.S. Patent Office and the World Bank has said that power plants using the technology are eligible for funding. (Ha'aretz, 21.11.96, p.C1)

PRIVATE SECTOR:

* AMERICA'S C.P.C TO ACQUIRE KOOR INDUSTRIES HOLDINGS IN FOOD PRODUCER TAMI.
Koor is in advanced negotiations to sell all of its 24.5% holdings in food producer TAMI (Israel Edible Products) to CPC of America. Since 1992, CPC has held 51% of TAMI for which it paid approximately $42 million. Ha'aretz reported that Koor had reached the conclusion that its relative advantage in the food business had eroded and that it should leave the sector.

(Ha'aretz, 21.11.96, p.C3)