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Chinese rolling stock manufacturer to make 56-mln-euro offset purchases from Israel: Israeli ministry

Xinhua | Updated: 2021-04-26 10:21
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JERUSALEM - China Railway Rolling Stock Corporation (CRRC) will make offset purchases from Israeli industries totalling about 56 million euros, the Israeli Ministry of Economy and Industry said Sunday.

Offset purchase was one of the terms in the Israeli government tender won by the Chinese state-owned company to supply carriages for the light rail system that is being built in the coastal Tel Aviv-Yafo Municipality.

The offset agreement was signed after long negotiations between the Industrial Cooperation Authority of the ministry and the Chinese company, with meetings in Israel and at the company's headquarters in Beijing.

As part of the agreement, CRRC will make reciprocal purchases from 12 businesses and industries in Israel.

The total amount consists of purchases of equipment at 17 million euros, services and work at 10.5 million euros, knowledge transfer at 4 million euros, and R&D cooperation with universities in Israel amounting to 7.6 million euros, as well as future investment in equipment procurement and R&D for 17 million euros.

"The agreement demonstrates that offset procurement not only deals with products but also is a significant tool for the development and training of manpower, as well as the transfer of knowledge, advanced working methods and R&D. The agreement is good news for the Israeli economy," the ministry noted.

"The Israeli academy will also benefit from collaborations that will advance science and industry," it said.

"The CRRC's offset procurement will help create jobs, train personnel and develop Israeli industry and academia," said Israeli Minister of Economy Amir Peretz.

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