Magal to participate in tender for European separation fence

Israeli companies will participate in tenders to build hundreds of kilometers of fences along the EU's new eastern border.

After European representatives launched a campaign against Israel's separation fence, and voted against Israel at the UN general assembly, the EU is planning a separation fence of its own. The EU plans to build a fence to separate its new members - Poland and Hungary - from its new neighbors - Russia, Belarus and Ukraine - to prevent the free movement of migrants seeking to enter the EU.

Israeli companies that specialize in the construction of warning fences and security systems will participate in tenders to build hundreds of kilometers of fences along the EU's new eastern border.

Sources inform “Globes” that Magal Security Systems (Nasdaq:MAGS; TASE:MAGS) is expected to sign a cooperation agreement with a major Western company for building fence and command and control systems in Eastern Europe.

Other Israeli companies are also interested in the pending EU project. El-Far Electronics also plans to participate in the tender through a large international partner.

Defense industry sources estimate the potential business at several hundred million dollars. Based on the experience of building Israel's separation fence, each kilometer of fence costs $1 million to build. Bases, sophisticated transit points, and observation and command and control systems cost $2 million per kilometer.

Magal, the main contractor for most of the 140-km separation fence around Samaria, also provides the IDF with war rooms, command and control systems for the buffer area, and the Fortis integrated command and control systems for settlements and secure facilities.

Magal declined to comment on the report.

Published by Globes [online] - www.globes.co.il - on August 12, 2004

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