The Hebrew newspaper “Maariv” said on Wednesday that the US administration has opened an investigation into the activities of an Israeli company involved in manufacturing parts designated for the “Iron Dome” system, and it may lead to the imposition of sanctions on it, as the grants obtained by the aforementioned Israeli company constitute government support prohibited according to American law.
The newspaper explained that the investigation targets the “Finkelstein Metals” company, based in the industrial zone in the northern city of Afula, which is a major supplier for the manufacture of the “Iron Dome” system, which is manufactured by “Rafael Systems for Advanced Defense Industries.”
The newspaper stated, “The American administration has begun an unprecedented legal process aimed at investigating the company because it receives American aid, because it is located in one of the development zones in Israel, which enjoys great advantages in terms of customs exemptions and support for manufacturing operations, etc., which has enabled it to market its products within the United States.” However, they supply the products at inflated prices.”
The newspaper pointed out that the company has about 3% of the market share in the United States, yet this share represents about 75% of its sales volume, which “contradicts the trade agreement signed between the two countries decades ago.”
Israeli sources told the Jerusalem Post that “the American decision regarding investigations and sanctions against the company is unclear,” and that “the volume of the company’s business within the United States is limited when compared to the volume of complaints filed against it.”
She pointed out that the American authorities imposed sanctions and customs duties on the company, which means affecting its ability to operate regularly.
It warned of “the threat to the supply operations required for local security industries,” stressing that “the Israeli Ministry of Foreign Affairs and the Federation of Industries entered the crisis line to try to clarify the circumstances.”
Finkelstein Metals is one of the vital companies in the Israeli industrial system, and it is the only one in Israel that produces copper and bronze alloys, and Israeli companies operating in the defense industries depend on it.
The company is the exclusive and sole supplier of metal rods to Rafael Advanced Defense Industries Systems, which uses them in the manufacture of missiles for the Iron Dome system.
Recently, American sanctions on Israelis and Israeli companies have become more familiar, as Washington imposed sanctions on settlers in the West Bank who systematically attack Palestinians, and as a result restricted their bank accounts.
