Israel, US near next-generation Arrow deal

The Arrow 3 missile is based on breakthrough Israeli technology.

"Defense News" reports that Israel and the US are close to signing an agreement for the next-generation Arrow 3 anti-ballistic missile system, based on breakthrough Israeli technology enabling it to operate above the atmosphere. A senior Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) source confirmed the report to "Globes", saying that the Arrow 3 is designed to intercept advanced medium-range ballistic missiles. It has more advanced features than its predecessors, including better maneuverability that improves interception ability.

The source added, "IAI has been developing the Arrow 3 since early 2009, after the defense establishment gave it the go-ahead. Work is proceeding rapidly, both in terms of the technology and administration."

"Defense News" says that development of the Arrow 3 became urgent in face of the growing Iranian missile threat. It says that the Arrow 3 program is characterized by extraordinary aggressiveness, with the first test scheduled in less than two years and deployment in 2012.

"Defense News" adds that breakthrough technology of the Arrow 3 is still only potential, because the missile has not yet been tested. The Arrow 3 will be equipped with a gyroscopically-mounted optical sensors; it second stage engine will power the maneuvering mechanism, instead of the small maneuvering rockets used in US anti-ballistic missiles such as the THAAD, and the naval PAC-3 and the SM-3.

"Defense News" quotes Uzi Rubin as saying that the planners have solved the problem of the final hit on the target, in order to destroy it, in a very elegant way. The new technology means that the missile is smaller and cheaper than its predecessors. Rubin was the first director of the Israel Missile Defense Organization (IMDO) and is now an international consultant.

Two months ago, US Missile Defense Agency commander Lt. Gen. Patrick O'Reilly told a Congressional hearing that the Arrow 3 was designed to have radically higher capability. It will be a more advanced system than anything the US has ever tried in its own programs. He cautioned, however, that the new and untried technology and the aggressive timetable for the missile's development set by Israel were very risky.

"Defense News" quotes Israeli sources as saying that Ministry of Defense director general Pinchas Buchris and Lt. Gen. O'Reilly were due to sign a development agreement for the Arrow 3 in a few weeks. It also quotes MDA spokesman Richard Lehner as saying that a deal was close, and IMDO director Arieh Herzog as saying that Israel was in the final stages of signing a new agreement, hopefully within a month.

"Defense News" adds that Israel and the US estimate the cost of the Arrow 3 program at less than $400 million over several years. Each country will cover half the cost, and that Israel has designated the Arrow 3 an "upper tier project", boosting its commitment. Israel covered 30% of the development cost of the Arrow 2.

Published by Globes [online], Israel business news - www.globes-online.com - on November 4, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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