Bombardier commits to spend NIS 500m in Israel
3 October 2019 - globes
The global transportation giant will order Israeli goods and services worth NIS 500 million as part of a new reciprocal procurement agreement.
The Ministry of Economy and Industry Foreign Investment and Industrial Cooperation Authority and global transportation giant Bombardier have signed a new framework agreement for reciprocal procurement by the company in the Israeli economy in the coming years.
Under the agreement, Bombardier will spend NIS 500 million in reciprocal procurement in Israeli industrial companies over the next five years.
The Industrial Cooperation Authority requires companies signing agreements with government agencies to spend 20% of the amount of their agreements on reciprocal procurement. Bombardier is the main supplier of Israel Railways. It conducts its business in Israel through Bombardier Israel, a local subsidiary.
The new agreement follows a series of agreements between Bombardier and government agencies, including Israel Railways and other mass transit companies. The agreement replaces an agreement from 10 years ago that expired. Under the previous agreement, Bombardier has already spent NIS 500 million on reciprocal procurement in Israel.
Bombardier has supplied Israel Railways with hundreds of railway carriages. It is converting these carriages to electrical propulsion, and is supplying the new electric locomotives on the electrified railway line between Jerusalem and Tel Aviv.
Bombardier Israel said that under its agreements with Israeli companies over the past decade, the companies were listed as suppliers for the production and manufacture of railway-related components and airplane parts. "Bombardier sees that Israeli industry has enormous potential for providing solutions and services, and wants to be a platform for its inclusion in transportation ventures that it leads throughout the world," Cohen said.