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Eltek Intends to Build Second Production Facility
April 12, 2021 | PRNewswireEstimated reading time: 1 minute
Eltek Ltd., a global manufacturer and supplier of technologically advanced solutions in the field of printed circuit boards, provided an update regarding its intention to apply to the Israel Land Authority (ILA) for an allocation of land in the north of Israel where Eltek intends to build a second production facility.
The Ministry of Economics approved a recommendation to the ILA to allocate land in the north of Israel to Eltek without the need for a bidding process. Such 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 Ministry of Economics recommendation, our board of directors instructed management to apply to the ILA for the necessary permits and to finalize the terms of a long term pre-paid lease.
Eli Yaffe, Eltek's CEO, commented: "We are considering expanding to a new and second advanced facility within a few years. This is a major part of our long term and strategic roadmap in order to grow and accelerate the expansion of our business."
Eltek is at an early stage of this process and there can be no assurance that it will obtain all the necessary permits for a new plant from the ILA, or that it will be able to finance such project.
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