Israeli defense establishment: Turkey to upgrade most of 900 Patton tanks
The IMI deal could amount to $7 billion
Dror Marom, September 29, 2002, Global Online - www.globes.co.il - The Turkish army is likely to upgrade most of its 900 M-60 Patton tanks. This is the optimistic prediction of Israel's defense establishment today, just before the contract for upgrading the first 170 tanks comes into effect tonight.

The price of the upgrade for the first 170 tanks is $668 million. If the remaining 730 tanks are also upgraded, the deal could amount to $7 billion. The upgrade is already the largest overseas upgrading project by an Israeli consortium, exceeding the $640 million upgrading of Turkish Air Force Phantom fighters by Israel Aircraft Industries (IAI).

Israel Military Industries (IMI) heads the consortium, which includes Elbit Systems (Nasdaq: ESLTF), El-Op Electro-Optics Industries, Tadiran Com, Urdan Industries, Ashot Ashkelon Industries, and Optronics. IMI decline to comment on the deal today, saying it was concerned that a public statement from Israel might prevent the contract from coming into effect.

The defense establishment believes that although the contracts are scheduled to become effective today, six months after being signed, Turkey may delay its official announcement for a few weeks.

IMI has yet to allocate its personnel for the project, but is not expected to recruit many new employees, even when the project is in full swing. One reason is the many subcontractors working on the project, as well as the commitment to perform most of the upgrade in Turkey itself.