Israeli photo voltaic vitality firm SolarEdge Applied sciences (Nasdaq: SEDG) is in talks to lease its manufacturing plant to a number of Israeli and overseas corporations, together with protection corporations, a supply accustomed to the matter has instructed “Globes.” One concept that has emerged within the negotiations is the opportunity of utilizing present manufacturing amenities to hurry up provides to Israel’s Ministry of Protection. At the least one firm, which serves as a contractor for Israeli protection tools corporations, is in talks to signal a memorandum of understanding with SolarEdge to lease manufacturing amenities on the manufacturing unit within the Tziporit Industrial Park, close to Nof HaGalil.
This manufacturing unit at present produces SolarEdge’s standard Terramax photo voltaic inverter. Nevertheless, the corporate is affected by a decline in orders, with a steady fall in its share worth and waves of layoffs. It appears inevitable that manufacturing amenities designated for enlargement can be leased out, whereas subleasing may assist the corporate with money move throughout this tough interval.
SolarEdge’s new CEO Shuki Nir, was introduced in, amongst different issues, to scale back spending and look at new financial savings, or alternatively new sources of income. The corporate laid off 400 workers a few month in the past, with the purpose of decreasing quarterly expenditure by $Sept. 11 million and enhancing effectivity.
A key goal within the trade
The Tziporit Industrial Park is ready to change into a key goal for the protection trade within the coming years: Final week, Minister of Protection Israel Katz pledged to advertise the relocation of the Reconstruction and Upkeep Middle from the Tel Hashomer base close to Tel Aviv to the commercial park. The Middle is accountable for the upkeep and restore of fight autos, technological methods, and, amongst different issues, additionally manufactures Merkava Mark 4 tanks.
Israel is going through a extreme scarcity of interceptor missiles, precision missiles, and even heavy mechanical tools. Eyal Zamir, Director Basic of the Ministry of Protection, and the following IDF Chief of Employees, has initiated armament and tools agreements with Israeli corporations price billions of shekels up to now 12 months. He locations nice stress on the native protection trade and decreasing reliance on imports.
The ten,000 sq. meter SolarEdge plant in Tziporit, known as Sella 1 after the corporate’s late founder Man Sella, was inaugurated in 2021 and has 500 workers. The plant manufactures photo voltaic inverters for the Israeli and US markets, and likewise has laboratory area for creating applied sciences and manufacturing processes that the corporate then implements in factories overseas.
In search of subtenants
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SolarEdge is at present within the midst of an organizational upheaval. An excessive amount of stock amongst prospects and a decline in orders have led it to a sequence of streamlining measures. Final month, it laid off 400 workers, after two rounds final 12 months. In January 2024, the corporate laid off 900 workers, 500 of whom had been in Israel, and in July 2024, 400 workers had been laid off, half of whom had been in Israel.
A supply near the corporate mentioned that SolarEdge is cautious about each shekel that it spends. It has closed down its vitality storage exercise and has begun on the lookout for subtenants for the campus that Azrieli is constructing for it in Glilot (simply north of Tel Aviv), with an estimated development price of NIS 990 million. That is much like the transfer by Wix, which additionally provided to sublease a part of its campus. SolarEdge could take this step each within the heart of the nation and in Tziporit.
SolarEdge declined to touch upon this report.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on February 6, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
