US Corporation: AEL Industries, Inc.
Israeli Corporation: Elisra Electronic Systems (formerly AEL Israel)
Financial Relationship: AEL owns 58 percent of Elisra.
Military Products: Electronic warfare systems; telephone switching equipment. In 1984 approximately 50 percent of sales were for export. Awarded Israel Defense Prize in 1983 for collaboration with the Israeli navy on computerized battle systems. [1]

US Corporation: Astronautics Corporation of America
Israeli Corporation: Astronautics CA
Financial Relationship: Subsidiary.
Military Products: Advanced electronic displays and symbol generators for military aircraft; fire control systems for tanks. [2]

US Corporation: Control Data
Israeli Corporation: Elbit Computers
Financial Relationship: Elron, the Israeli parent of Elbit, established in 1962 with a joint investment from Rockefeller Venture Capital and Israel Discount Bank. In 1966, Elron co-founded Elbit Computers with the Israeli Ministry of Defense. Control Data purchased the shares of the Ministry of Defense in 1970. Control Data exchanged its shares of Elbit for 9 percent of Elron in 1981. Elbit USA, which seeks joint ventures and markets for Elbit in the United States, and the French and German affiliates of Elbit are wholly owned subsidiaries of Control Data. Control Data, CLAL and Elron own equal shares of Worldtech.
Military Products: Array of computerized equipment, including weapons delivery systems for aircraft; tank fire control system; military communications; electronic warfare systems. [3]

US Corporation: GM-Detroit Diesel Allison
Israeli Corporation: Nimda
Financial Relationship: Details unknown.
Military Products: Vehicle power trains; retrofits for tanks, trucks and armored personnel carriers; majority of sales for export. [4]

US Corporation: GTE
Israeli Corporation: Tadiran Israel Electronics Industries
Financial Relationship: GTE owns 22 percent of Tadiran, Israel's largest private-sector firm. Until 1983, GTE owned 45 percent of Tadiran, but sold half its shares to the other large owner of Tadiran, Koor, the Histadrut labor federation company.
Military Products: Electronic warfare systems; military communications and command systems; remotely piloted vehicles. In 1982-1983, 46 percent of all sales were for export; 70 percent of these military products. El-Op (Tadiran has 50 percent interest) produces passive night vision and other optical devices for the military, ranging from components for the Kfir and Skyhawk to handheld laser range finders for infantry use. In 1983, 47 percent of El-Op’s sales were for export. [5]

US Corporation: Gerber Scientific, Inc.
Israeli Corporation: Beta Engineering and Development, Inc.
Financial Relationship: Through Gerber Venture Capital, a wholly owned subsidiary, Gerber Scientific owns 35 percent of Beta Engineering.
Military Products: Mine detectors for Israeli army and export; vibration detection surveillance devices advertised as “field proven on five continents,” through YAEL Systems, a wholly owned subsidiary of Beta Engineering. Beta is part of the CLAL group of Israel. [6]

US Corporation: Intel
Israeli Corporation: Intel Israel
Financial Relationship: Wholly owned subsidiary.
Military Products: Microcomputers for missiles and airplanes. [7]

US Corporation: Motorola
Israeli Corporation: Motorola Israel
Financial Relationship: Wholly owned subsidiary.
Military Products: Fuses for bombs; surveillance and security equipment. [8]

US Corporation: United Technologies, Inc.
Israeli Corporation: Bet Shemesh Engines
Financial Relationship: UT bought 40 percent of the Israeli government’s shares of Bet Shemesh in 1984.
Military Products: Engines and engine components for military aircraft (including the Phantom, Tadiran’s drone and others); components for Pratt and Whitney’s engine for the Lavi. (UT is the parent company of Pratt and Whitney.) [9]

US Corporation: IsLAMBDA Electronics
Israeli Corporation: Veeco Instruments
Financial Relationship: Wholly owned subsidiary.
Military Products: Details unknown. [10]

US Corporation: Vishay Intertech
Israeli Corporation: Vishay Israel
Financial Relationship: Subsidiary.
Military Products: Resistors; thermal sleeves for the Merkava and other tanks; other products. [11]

Footnotes

[1] AEL’s 1984 10-K form filed with the Securities and Exchange Commission; SIBAT catalog; Jerusalem Post, May 10, 1984.
[2] Dun’s Marketing Services, America’s Corporate Families and International Affiliates (1984); SIBAT catalog.
[3] Control Data’s 1OKs, 1974-1984; Arnold Sherman and Paul Nirschhorn, Israel High Technology (Jerusalem: La Semana Publishing, 1984), pp. 157-159; SIBAT catalog.
[4] Michael C. Dunn, “The Silicon Kibbutz,” Defense and Foreign Affairs (December 1985).
[5] SIBAT catalog; Michael C. Dunn, “Tadiran, Israel’s Defense Electronics Giant, Looks Abroad for Growth,” Defense and Foreign Affairs (October 1983), p. 36; Jerusalem Post, May 10, 1984.
[6] Gerber Scientific’s 1984 10K; SIBAT catalog.
[7] Israel Economist (August 1983).
[8] Motorola’s 10K reports.
[9] Financial Times, August 28, 1984; SIBAT catalog.
[10] Veeco Instruments’ 1984 10K.
[11] SIBAT catalog; Israel Economist (September 1984), p. 29.

How to cite this article:

Sheila Ryan "US Corporate Ownership of Israeli Military Industries," Middle East Report 144 (January/February 1987).
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