In an unprecedented legal proceeding, the American government opened an investigation into Finkelstein Metals and is examining the government’s conduct, Maariv reported Wednesday morning.
Imposition of sanctions
Sanctions and customs duties have already been imposed on the company, which significantly impair its ability to operate regularly and may endanger the supplies required for the defense industry, such as the Iron Dome. As a result, the Foreign Affairs Ministry and the Association of Manufacturers entered the picture.
Finkelstein’s production
Finkelstein is defined as an essential enterprise for the industry and is the only Israeli company that produces brass, bronze, and copper alloy products. It employs 80 workers from the northern region, and its products are used by defense companies. The company operates in the Alon Tavor industrial zone near Afula.
The company is Rafael’s sole supplier of metal bars for the purpose of producing ammunition for Iron Dome batteries. The company is controlled by the family, but about a decade ago, half of its shares were purchased by Leader Investments, owned by Dan David’s heirs, for NIS 25 million.
Potential effects on trade relations
The precedential investigation procedure could have a dramatic impact on the entire trade relationship between Israel and the US and have broad implications for Israeli exporters to the US, including the defense industry.
