Israeli Government in Negotiations With ThyssenKrupp to Build a Factory in Israel
The German conglomerate is committed to $220 million (€187 million) in reciprocal procurements in Israel as part of a 2015 submarine deal
12:4420.11.17
The Israeli government has offered German conglomerate ThyssenKrupp AG to convert a debt valued at $220 million (€187 million) to an investment in a new factory, to be established in Israel, according to officials in the Israeli Ministry of Finance, Ministry of Economy, and the Ministry of Defence.
ThyssenKrupp representatives in Israel
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ThyssenKrupp was committed to $625.5 million (€531 million) in reciprocal procurements in Israel as part of a series of deals it signed with the Israeli government since 2015. As part of the ongoing transactions, the Israeli government has purchased three ThyssenKrupp submarines for $1.4 billion (€1.3 billion) and four ships for $506.5 million (€430 million). Both deals have not been completed, with some of the marine vessels planned to arrive in Israel in the coming years.
ThyssenKrupp representatives in Israel The recent deals with ThyssenKrupp have been at the center of a high-profile criminal investigation launched in February. People related to Israeli Prime Minister Benjamin Netanyahu, including Miki Ganor, a former representative of ThyssenKrupp in Israel, are suspected of bribery in support of ThyssenKrupp’s bid for the supply of military marine vessels to Israel.
ThyssenKrupp has already made a number of purchases in Israel, but according to Israeli government officials the German company has been delaying the completion of its obligations.
In May, the Israeli government warned ThyssenKrupp that if it fails to complete its obligations it will be blacklisted, resulting in a five-year embargo in Israel.
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Now, the Israeli government has decided to allow ThyssenKrupp to convert its debt, investing instead in building a new facility in one of Israel’s peripheral regions, which the Israeli government expects will result in job creation and long-term profits.
Based in Duisburg and Essen, ThyssenKrupp has a yearly revenue of approximately $44 billion. In addition to being one of the world's premier steel producers, ThyssenKrupp produces machines, trains, ships, and submarines, among other products and services.
