Israeli solar water heater producer enters US market

Rehovot-based company signs multi-million dollar exclusive distribution deal with American solar energy giant; deal worth $50 million over 5 years

Navit Zomer|Published: 10.16.10 , 08:09

Israel is turning into a leading solar water heater supplier in the United States – M.C.O Industries, a Rehovot-based veteran solar water heater manufacturer and one of Israel's top solar panel producers, signed an exclusive distribution deal with Texas-based solar energy company Sun Freedom.

The deal, signed last week, is worth of up to $50 million (about NIS 180 million) over the next five years.

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Sun Freedom is owned by two giant Texan construction and installation firms. As part of the deal, the American company will sell M.C.O solar water heaters at an estimated value of $12 million in the first year, and up to $50 million over the five-year exclusivity agreement.

In addition, Sun Freedom invested $2 million in field research and market surveys.

Executive-Director and owner of M.C.O Industries told Yedioth Ahronoth, "This is a breakthrough for the factory. Initially, the solar water heaters will be sold in Texas, and later on across the United States and Mexico."

Currently, M.C.O Industries manufactures some 2,500 solar water heaters a month. The deal will increase their monthly production by an additional 1,500 units, each to be sold for up to $800 (about NIS 2,800) in the United States.