The Alenia Aermacchi M-346 trainer selected by the Israeli air force will not be assembled in Israel, following an Italian commitment to place offset contracts worth approximately $1 billion.
Confirmation of the production strategy came as the Israeli defence ministry reached a $603 million agreement with Elbit Systems/Israel Aerospace Industries joint venture TOR Systems for the maintenance of its future 30-strong M-346 fleet.
Israel formally selected the M-346 earlier this year, following a competition between the type and the Korea Aerospace Industries/Lockheed Martin T-50.
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