The deal comes after Intel received a $200 million grant for a new center in Kiyrat Gat.
Intel Corporation (Nasdaq: INTC) has signed a new reciprocal procurement deal in Israel. Intel Israel general manager Maxine Fassberg today signed the five-year $300 million agreement with Industrial Cooperation Authority director general Bina Bar-On.
The agreement comes after the Investment Center agreed to grant Intel $200 million for a new center at its Fab 28 in Kiyrat Gat. Bar-On will oversee Intel’s reciprocal procurements in 2011-16.
Bar-On said, “The great news emerging from this new agreement touches on Israeli vendors who will be recognized by giants like Intel. This announcement creates immense added value for these vendors and service provides, because it will open doors for them all over the world.”
This is Intel’s third reciprocal procurement agreement with the Industrial Cooperation Authority since 1996. The Ministry of Industry, Trade and Labor says that, during this period, Intel has certified 500 Israeli vendors which service the company in Israel and internationally.
“It is to Intel’s credit that it has complied with all its reciprocal procurement commitments, and actually made much greater procurements beyond its commitments. Since the first agreement was signed in 1996, Intel has led in reciprocal procurement and vendor certification, making over $5 billion in procurements in Israel,” said Bar-On.