Elbit Systems Ltd. (NASDAQ and TASE: ESLT) ("Elbit Systems") announced today the establishment of Sharp Elbit Systems Aerospace, Inc. ("SESA"), a jointly owned company in South Korea, with Sharp Aviation K Inc. ("Sharp Aviation K"), located in Seoul, South Korea. Elbit Systems will own 19% with a growth option to 50% ownership.
SESA will operate in Ansan and among other capabilities, will offer maintenance, repair and manufacture of advanced military aircraft avionics as well as research and development of systems and avionics for both existing and future projects, such as the Korean Light Attack Helicopter (LAH) and the Korean Future Fighter (KFX) development projects. Contracts currently operated by Sharp Aviation K will be transferred to SESA as part of the transaction.
As a Korean company, SESA will also be able to offer offset solutions to foreign suppliers and OEM's selling defense goods and services in Korea.
Mr. Soon-Suk Paik, President and CEO of Sharp Aviation K commented: "Working with the Defense Acquisition Program Administration (DAPA) of Korea and international and Korean manufacturers, SESA will offer the Korean aerospace market advanced solutions and systems, made in Korea and based on Elbit Systems' technological portfolio and Sharp Aviation K's vast experience in aviation and avionics, strong local presence and deep understanding of the Korean market".
Mr. Bezhalel (Butzi) Machlis, Elbit Systems' President and CEO, noted: "The establishment of this new company is a significant step for Elbit Systems in Korea, which we consider to be a very important market. We trust that establishing this jointly owned company will bring new opportunities and will be of mutual benefit for both our companies and for Korea".
Source: Elbit Systems Ltd.
Date: Apr 25, 2013