MONTVALE, N.J., April 13, 2017 /PRNewswire/ -- Micronet Enertec Technologies, Inc. (NASDAQCM: MICT), announced today that its wholly-owned subsidiary, Enertec Systems 2001 Ltd. (Enertec), entered into a Teaming Agreement with Cyient DLM Private Limited (NSE: CYIENT.NS) based in India to jointly pursue contracts with Israeli Aerospace and Defense companies that have offset obligations in India. These obligations are based on an ongoing Aerospace and Defense trade agreement between the governments of India and Israel.
India and Israel have strong trade ties, with the value of Aerospace and Defense contracts between the countries totaling over $9 billion between 1999 and 2009. India is the largest purchaser of Israeli Aerospace and Defense equipment, currently estimated at a rate of over $2 billion per year. Israel is India's second largest Aerospace and Defense supplier. Per the inter-governmental trade agreement between the two countries, and in accordance with India's Aerospace and Defense Procurement Procedures (DPP), any Indian purchase of foreign military equipment over a certain amount necessitates an offset procurement of 30% of its value by the Israeli government.
Cyient is an Indian Aerospace and Defense company focused on engineering, networks and operations, established in 1991. It has over 12,000 employees across 38 global locations and was featured among the top 30 outsourcing companies in the world during 2014.
Based on the Teaming Agreement, Enertec and Cyient will jointly bid on Aerospace and Defense contracts that are part of any required offset pursuant to the DPP. Enertec will lead planning and design, while Cyient will lead procurements and production in India, thereby meeting offset requirements.
"One of Enertec's largest Aerospace and Defense customers just received a $1.1 billion contract approved by the Indian government. This substantial contract is one part of a $3 billion agreement between India and Israel's top Aerospace and Defense contractors. Trade contracts of this magnitude increases the need for more offset transactions, whereby Israel is obligated to purchase Aerospace and Defense services from India. By teaming up with India-based Cyient, Enertec is well positioned to potentially benefit from this trade opportunity, while having the ability to tackle larger scale projects," stated David Lucatz, CEO and Chairman of Micronet Enertec Technologies Inc.
About Micronet Enertec Technologies, Inc.
Micronet Enertec Technologies, Inc. (NASDAQCM: MICT) provides high tech solutions for severe environments and the battlefield, including missile defense technologies for Aerospace & Aerospace and Defense and rugged mobile devices for the growing commercial Mobile Resource Management (MRM) market. MICT designs, develops, manufactures and supplies customized Aerospace and Defense computer-based systems, simulators, automatic test equipment and electronic instruments, addressing the Aerospace and Defense industry. Solutions and systems are integrated into critical systems such as command and control, missile fire control, maintenance of Aerospace and Defense aircraft and missiles for the Israeli Air Force, Israeli Navy and by foreign Aerospace and Defense entities. MICT's MRM division develops, manufactures and provides mobile computing platforms for the mobile logistics management market in the U.S., Europe and Israel. American-manufactured systems are designed for outdoor and challenging work environments in trucking, distribution, logistics, public safety and construction.
This press release contains express or implied forward-looking statements within the Private Securities Litigation Reform Act of 1995 and other U.S. Federal securities laws. These forward-looking statements include, but are not limited to, those statements regarding Enertec's plan to pursue contracts with Israeli defense companies that have offset obligations in India pursuant to its Teaming Agreement with Cyient and Enertec's position to potentially benefit and tackle larger scale projects. Such forward-looking statements and their implications involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ materially from those projected. The forward-looking statements contained in this press release are subject to other risks and uncertainties, including those discussed in the "Risk Factors" section and elsewhere in the Company's annual report on Form 10-K for the year ended December 31, 2016 and in subsequent filings with the Securities and Exchange Commission. Except as otherwise required by law, the Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
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SOURCE Micronet Enertec Technologies, Inc.