SolarEdge in talks to sublease northern production plant

Israeli solar energy company Solaredge Technologies (NASDAQ: SEDG) There are talks to rent their production factory for many Israeli and foreign companies, including defense companies, and he has told a source familiar with the “Globes”. One of the ideas that appeared in the negotiations is the possibility of using current production facilities to accelerate supplies to the Israeli Ministry of Defense. At least one company, which works as a contractor for Israeli defense equipment companies, is holding talks to sign a memorandum of understanding with Solaredge to rent production facilities at the factory in Tziporit industrial park, near Nof Hagalil.

This factory currently produces the famous Terramax Solar from Solaredge. However, the company suffers from a decrease in requests, with a constant decrease in its share price and workers ’layoffs. It appears that it is imperative that the production facilities designated for expansion be rented, while the expansion of the subconscious can help the company with a cash flow during this difficult period.

Shochi Nir, the new CEO of Solaredge, was brought from among other things, to reduce spending and examine new savings, or new revenue sources instead. The company has registered 400 employees about a month ago, with the aim of reducing separation spending by $ 9-11 million and improving efficiency.

A major goal in industry

Tziporit Industrial Park is scheduled to become a major target for the defense industry in the coming years: last week, Israel Defense Minister Katz has pledged to promote the transfer of the Reconstruction and Maintenance Center from the Hashumer base near Tel Aviv to industrial park. The center is responsible for maintenance and repair of combat vehicles, technological systems, and among other things, it also manufactures the Merkava Mark 4 tanks.

Israel faces a severe shortage of interceptor missiles, accurate missiles, and even heavy mechanical equipment. Eyal Zamir, Director General of the Ministry of Defense, and the following Israeli Defense Army Chief of Staff, began armament and equipment agreements with Israeli companies worth billions of Chicks last year. It offers great pressure on the local defense industry and reduces dependence on imports.

The 10,000 square meters of Solaredge factory was opened in Tziporit, which is called Sella 1 after the late Guy Sella founder, in 2021 and has 500 employees. The factory manufactures the solar reflection of the Israeli and American markets, and it also has a laboratory space to develop technologies and production operations that the company then in factories abroad.

Searching for militants

Solaredge is currently in the midst of organizational disorders. A lot of stocks between customers and low requests have led to a series of simplification measures. Last month, she delivered 400 employees after two rounds last year. In January 2024, the company recorded 900 employees, 500 of them were in Israel, and in July 2024, 400 employees were demobilized, half of them were in Israel.

A source close to the company said that Solaredge is keen on every shekels spent. She closed her energy storage activity and started searching for interlocking materials for the campus on which Azrieli is building in Glilot (North of Tel Aviv), at a cost of construction of 990 million New. This is similar to the WIX step, which also offered the rental of a portion of the campus. Solaredge may take this step in the center of the country and in Tziporit.

Solaredge refused to comment on this report.

It was published by Globes, Israel Business News – En.globles.co.il – on February 6, 2025.

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