PETACH-TIKVA, ISRAEL – The domestic Ministry of Economics approved a recommendation to the Israel Land Authority to allocate land in the north of Israel to Eltek to build a second production facility without the need for a bidding process.

This recommendation provides for an exemption period of 24 months from the requirement to acquire the land by means of a tender. The land development cost is expected at a 30% discount to prevailing market prices.

Following receipt of the recommendation, the company’s board instructed management to apply to the ILA for the necessary permits and to finalize the terms of a longterm prepaid lease.

"We are considering expanding to a new and second advanced facility within a few years,” said Eli Yaffe, CEO, Eltek. “This is a major part of our longterm and strategic roadmap in order to grow and accelerate the expansion of our business."

Eltek said the process is at an early stage, and there is no assurance it will obtain all the necessary permits for a new plant from the ILA, or that it will be able to finance the project.

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