"Up to this moment at which we are talking, I see no impact of political events on our business. Perhaps it will happen in another few years, but at present I don’t see anything," Elbit Systems (Nasdaq: ESLT; TASE: ESLT) chairman and president Joseph Ackerman told "Globes" in a special interview in Brazil.
"There's politics, and there are projects, and, in my view, there is no effect on any industry in Israel. On the other hand, there's no doubt that it's pleasanter to work with a country with which we have better relations. I believe that if you have a good system, in the end the customers will buy it, even if the politicians say otherwise," he adds.
Ackerman came to Brazil as part of a delegation led by President Shimon Peres, who is visiting Brazil and Argentina. One of the main aims of the visit is to expand economic cooperation between Israel and those countries, which is mainly in defense, agriculture, and high tech. Yesterday, Peres met Brazilian Minister of Defense Nelson Jobim, accompanied by several senior executives from Israel's defense industry, including Ackerman.
Do these meetings really contribute to strengthening ties with Brazil?
"A meeting under Peres's umbrella is something different. People fail to realize how a visit by a high level personality like Peres leaves a trail of goodwill behind it with the other side. I'm glad that Peres devoted time to a visit like this; there should be more of them."
How does the benefit manifest itself?
"It lends warmth and legitimacy to later talks. After they broadcast speeches, as the broadcast Peres's speech in the Parliament, it gives a good feeling towards Israel."
In two weeks' time, the president of Iran, Mahmoud Ahmadinejad, is due to visit Brazil. Are you not afraid that he will exert pressure not to do business with Israel companies, especially defense companies?
"I have managed Elbit for many years. I don't recall a political visit affecting our ability to do business. There's a fairly clear demarcation. Our deals are based on what's good for both sides."
While many Israeli companies have only begun to be active in Brazil in the past few years, Elbit Systems is an old hand, with activity stretching back 15 years.
In what areas will you develop your activity in Brazil?
"The plan is develop current areas of activity substantially. There are four areas: systems for aircraft and helicopters; homeland security, which has gained in importance because of the Olympic Games that will be held in this country; unmanned aircraft, in which we lead in Israel and will do here as well; and space."
What are your goals?
"If in the past ten years we did deals with an average value of $70 million annually, we intend to grow towards $100 million annually."
Will the growth come through acquisitions?
"If an acquisition opportunity comes along, we'll take it, but it isn't a necessity. We have all the capacity for growth internally."
Published by Globes [online], Israel business news - www.globes-online.com - on November 11, 2009
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