Israel Aerospace Industries
Israel Aerospace Industries signs deal with Northrop-Grumman
Billion dollar deal will provide US company with eight new satellites, which contain special radar
Israel Aerospace Industries has signed a deal to sell advanced spy satellites to US company Northrop-Grumman. The company will spend $1.6 billion in the first phase of the transaction.
The new generation satellites purchased by Northrop-Grumman contain special radars and an optic mechanism designed to allow visibility even in adverse weather conditions.
The radar for the satellite was designed by Elta Electronic Industries, a subsidiary of IAI.
Each satellite will be sold at a cost of $200 million, a relatively low price compared to current United States spending on larger satellites.
Northrop-Grumman will purchase eight satellites in the first phase of the transaction, and will receive replacement satellites in a few years.
A source in the Israeli defense establishment told Yedioth Aharonoth Wednesday that such a purpose indicates international recognition of Israel's Aerospace capabilities.
"Israel is also about to launch a satellite with this special radar," said the source. "It will supplement our existing satellites."
Earlier satellite deal
The deal between IAI and Northrop-Grumman marks the latest in a series of successful transactions for Israel's defense industry, in the satellite sector.Two years ago, Israel and France signed a deal for collaboration in the development of micro-satellites. IAI, along with El-Op and Rafael Industries, are working with the French space program on this project.
The micro-satellite is expected to be launched in 2008, using a Russian satellite launcher. The three Israeli companies are expected to receive $28 million for their part in the project.
This collaboration project has the possibility to open doors to future cooperation with France which could provide big revenues, sources from the companies said.
