Outgoing Israel Military Industries chairman Arie Mizrachi: IMI's main reason for selling Magen is to enter new markets.
For the first time, Israel Military Industries (IMI) has transferred a defense activity to a private company. IMI's Magen light arms factory, which makes the Tavor assault rifle among other things, has been sold to IWI, owned by Samy Katsav.
Upon giving Katsav the keys to the factory, IMI chairman Arie Mizrachi said the Tavor rifle would enter operational service within a month. His aides said it would happen this month. Mizrachi said IMI's main reason for selling Magen was its wish to enter new markets, while preserving employees' rights. Mizrachi will retire soon.
Katsav said he planned to expand Magen, and invest in developing new products. Regarding the labor dispute that erupted this week at IMI, he said, "The factory's employees are vital, and they are the company's greatest asset."
Published by Globes [online], Israel business news - www.globes.co.il - on February 17, 2005