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07/06/2004:

"Israel produces some 12 percent of world's military exports"

by Gideon Alon Haaretz Daily

Israel has a 10 to 12 percent share of the world's total military-related production. In monetary terms, $2.5 to 3.5 billion dollars out of the international total of $30 billion earned from the production and sales of military products is pulled in by Israel, Defense Minister Director General Amos Yaron told the Knesset Foreign Affairs and Defense Committee on Monday.

Yaron said some 80 percent of Israel's military production is now destined for overseas customers. The Israel Defense Forces was the prime customer in the past, purchasing some 80 to 90 percent of local military production. This reduction can be attributed to the IDF's reduced demand for locally-produced military products. The defense establishment is thus now making efforts to create new client markets.

IDF reserve Major General Yossi Ben-Hanah, head of the Defense Ministry's department for security exports, said the defense establishment is aiming to secure exports of $3 billion in 2004. He noted that defense-related exports include items such as pilotless planes, anti-tank missiles, night-vision equipment, radar and the upgrading of planes, helicopters and tanks.

Ben-Hanan said the record year for defense exports was 2000, when the figure reached $4 billion, largely due to an agreement signed with Turkey worth $700 million to upgrade its tanks. There were also other defense-related projects with Far East nations.

Ben-Hanan said Israeli defense exports to the United States also increased and leveled at $500 million in 2000.

Israel also exports "surpluses" of weapons and tanks no longer in IDF service worth some $125 million annually, Ben-Hanan said.