Special to WorldTribune.com

TEL AVIV — Israeli companies have been dismayed over the feverish
debate on war with Iran.

Industry sources said foreign clients have questioned whether Israeli
companies could maintain production and delivery during a missile war with
Iran. They said the greatest concerns focused on companies in northern
Israel near the border with Lebanon.

“The lively security debate over whether Israel will attack Iran is
causing us immense damage and uncertainty,” Jacob Rosenberg, chairman of Israel’s RH Technologies, said.

RH, which manufactures components for circuit boards, is located in
Upper Nazareth, well within missile and rocket range of Hizbullah in
neighboring Lebanon. The company has been a leading supplier to the United States.

“Many U.S. companies which are our customers are signaling pressure and panic and demanding answers from us, such as how they will receive components from us if Israel’s home front is bombarded by hundreds of rockets and missiles a day,” Rosenberg told Israel’s Globes daily.

The sources said other Israeli companies have encountered skepticism
from contractors in the United States and European Union. They said foreign
companies want guarantees that production orders would continue even during
a war with Iran and its proxies.

Israeli industry has been concerned over an attack on
Iran’s nuclear infrastructure. Israel’s largest information group, BDI,
assessed that a war with Iran could cost the Jewish state nearly $42
billion, or some 20 percent of the total gross domestic product. The
assessment envisions massive damage to Israel’s industrial infrastructure in
any Iranian-led missile war.

The sources said foreign contractors are also demanding that Israeli
electronic suppliers provide access to source codes. Such access would
enable production to be relocated should Israel be plunged into regional
war.

For his part, Rosenberg said his company has been working on plans to
transfer production to Hungary in case of war. He said up to 150 engineers
and technicians were prepared to fly to Central Europe.

“The great risk is what will happen to companies that will have to move
their production overseas during the fighting,” Rosenberg said. “There is no
certainty that they will bring the production back to Israel, because they
will discover that foreign tax systems and the proximity to markets is much
more attractive, and they will prefer to stay there.”

  ‘Lively’ Iran war debate already impacting Israel’s private sector, Iran’s nuclear infrastructure, Israeli manufacturers, RH Technologies, Upper Nazareth