Israeli defense companies expand global reach with new deals in Cyprus, Germany and Canada

Israeli defense companies are expanding their international reach through new deals and partnerships, with reported plans for a naval deal with Cyprus, a manufacturing project in Germany and ther acquisition of a Canadian underwater robotics company by Elbit Systems.

This week, reports emerged of a potential $100 million deal for Cyprus to purchase Israeli-made defense systems and naval vessels, including systems manufactured by Rafael Advanced Defense Systems, resulting in shares of Israel Shipyards rising 6% on the Tel Aviv Stock Exchange on Tuesday morning.

The reported deal follows the Achilles Shield agreement, signed in August between the Israeli Ministry of Defense and Greece. The €3.1 billion ($10.75 billion) agreement includes Israeli-made air defense systems and industrial cooperation between Israeli and Greek defense companies to support the Greek military.

Rafael has reached an agreement in principle with German authorities and investment firm Aurelius to establish production of Iron Dome components at Volkswagen’s plant in Osnabrück, Germany. The project is intended to help secure the plant’s future as Volkswagen restructures its operations, preserving most of its jobs while creating opportunities for defense manufacturing. However, discussions have reportedly been complicated by Qatar’s 10% stake in Volkswagen.

Rafael has reached an agreement in principle with German authorities and investment firm Aurelius to establish defense-related operations at Volkswagen’s plant in Osnabrück, Germany. The deal is expected to replenish Iron Dome interceptor stocks, preserve thousands of jobs in Germany and create new jobs in Israel, although Qatar’s 10% stake in Volkswagen has allegedly complicated negotiations.

Rafael CEO Yoav Tourgeman said the partnership would establish a long-term industrial collaboration, with the technology manufactured entirely in Germany to strengthen security in both Germany and Europe.

"At the heart of the partnership is proven, groundbreaking technology, designed to provide a response to current threats and prepare for future challenges.”

In a separate development, Elbit Systems announced this week that it had completed its acquisition of Canadian company International Submarine Engineering (ISE), which specializes in autonomous underwater vehicles, remotely operated vehicles, control systems and robotics. ISE has more than 50 years of experience and has supplied over 250 underwater vehicles to customers in more than 20 countries.

Elbit said the acquisition will expand its underwater capabilities in intelligence, surveillance and reconnaissance, mine countermeasures and anti-submarine warfare.

“This acquisition marks another milestone in Elbit Systems’ strategy to expand its offerings in the naval domain,” said Elbit President and CEO Bezhalel Machlis.

“Combined with our existing capabilities in naval electronic warfare, autonomous systems, naval precision munitions and maritime mission systems, ISE’s underwater technologies will further strengthen our position as a global provider of comprehensive, integrated maritime solutions."