Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has established a joint venture in South Korea, Sharp Elbit Systems Aerospace Inc. (SESA), with aviation services provider Sharp Aviation K Inc. Elbit Systems will own 19% of the venture, with an option to increase its holding to 50%.
SESA, based in Seoul, will offer maintenance, repair, and manufacture of advanced military aircraft avionics. It will also conduct R&D of systems and avionics for existing and future projects, such as the Korean Light Attack Helicopter and the Korean Future Fighter 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.
Sharp Aviation K is an aviation services provider, founded in 1964, which provides ground handling services, cargo terminal, FAA repair shop, aircraft parts, fuelling, and other services to commercial airlines' passenger and cargo planes at six airports in Korea.
Elbit Systems president and CEO Bezhalel Machlis said, "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.
Sharp Aviation K president and CEO Soon-Suk Paik said, "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."
Published by Globes [online], Israel business news - www.globes-online.com - on April 25, 2013
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