The French Company is Late in Realizing 10 Million Euros of Its Reciprocal Purchase Commitments in Israel

Bina Bar-On, ICA’s Director-General: “We are disappointed about VOSSLOH-COGIFER’s lack of effort in fulfilling its commitment for reciprocal purchases and industrial cooperation in Israel.”

The Industrial Cooperation Authority (ICA) in Israel’s Ministry of Industry, Trade and Labor has recorded its disappointment at the lack of effort and poor results by VOSSLOH-COGIFER in fulfilling its reciprocal purchase commitments to the State of Israel.

Bina Bar-On points out that there is especially great disappointment, in contrast to the impressive fulfillment, sometimes going above and beyond commitments, by many other companies, among them Siemens, General Motors, General Electric and more.

VOSSLOH-COGIFER, part of the VOSSLOH conglomerate, manufactures infrastructures for trains and tracks. The company has been selling its products to Israel Railways since 1991 and is committed to reciprocal purchases through these orders.

The volume of the company’s arrears stands at 10.1 million Euros, and over the years VOSSLOH-COGIFER has fulfilled only about 20% of its commitments, and that is in the area of transportation through Zim and purchases from Iscar.

Zvi Leshem, Director of the ICA’s Railways and Automotive Sector, says that “over the years and despite many warnings that we have given them and promises from representatives of VOSSLOH-COGIFER that they will take action to realize their commitments for industrial cooperation, the company has shown little intention of fulfilling their buy-back obligations and has not initiated any endeavors in Israel and its achievements have been minimal. The main part of the reciprocal purchase commitment should be implemented by the end of this year. In the event that the company does not show any willingness to fulfill its commitments then the ICA will be compelled to take steps against VOSSLOH-COGIFER.”

VOSSLOH-COGIFER is one of about 100 companies who are in arrears in fulfilling their obligations. 

“Companies that do not meet their commitments towards the State of Israel are at risk of being blacklisted,” said Bina-Bar-On, referring to these companies. “The significance of the black list is that for a specified period these companies will not be permitted to participate in future government tenders.”

“We are convinced of the capabilities of the various companies in Israeli industry to provide interesting and profitable propositions from a business standpoint to VOSSLOH-COGIFER.” She added and clarified that the ICA sees assisting international companies in realizing any industrial activity that it wants to initiate as of the greatest importance, and will do anything to help overseas firms make business contacts with appropriate Israeli companies, as it has always done

To date, as a result of the intensive activities of the ICA to enforce fulfillments, the volume of arrears has fallen by 15% in 2005 compared to the previous year and stands at $227 million.