Beyond the upgrade of Bulgaria’s air and missile defense systems in accordance with military objectives, every state must safeguard its civil aviation and strategic infrastructure, according to Alon Kaplan, Regional Marketing and Business Development Director at IAI and ELTA Systems Ltd*

The state-owned Israel Aerospace Industries (IAI) is the largest defense and aerospace company in Israel. Among the most active players in the modernization process of the Bulgarian Army, last year IAI, through its wholly-owned subsidiary ELTA Systems (IAI/ELTA), offered Bulgaria the next generation of its highly acclaimed ELM-2084 3D MMR radar family, the Multi-Mission Radar (MMR) and the multi-sensor version, called MS-MMR, as a replacement for Bulgaria’s legacy radars.

Fully operational and combat proven, the MMR systems provide air surveillance and air defense capabilities to customers in Europe and around the world. NATO compatible, the systems are in service with the defense forces of various member states, effectively functioning as part of NATO’s command and control systems. MMR also serves as an integral part of the well-known Iron Dome, David’s Sling, and IAI’s land-based Barak 8/MX weapon systems. Over 150 MMR systems are already in service worldwide, demonstrating the system’s ability to efficiently combine air defense and air surveillance missions.

Alon Kaplan, Regional Marketing and Business Development Director at IAI and ELTA Systems Ltd

Mr. Kaplan, what brings you to Bulgaria and what projects is ELTA working on currently here?

Currently we are focused on the project for the manufacture and delivery of seven new 3D radars, one of the most important programs for Bulgaria in the context of the modernization and rearmament of the Bulgarian Army. These radars are a must because the legacy systems currently in service have reached the end of their service life and are totally incompatible with NATO standards, let alone the continually evolving new threats and challenges. The new 3D radar systems will provide enhanced surveillance capabilities for Bulgaria’s airspace. With Bulgaria strategically located on the external perimeter of the Alliance’s border, it is essential that the country have the capability to ensure full situational awareness of its skies in all weather conditions, 24/7. Let’s not forget that the program for the new 3D radars is closely related to the delivery of the eight new F-16 Block 70 fighter jets that Bulgaria has already purchased. Even the most modern and powerful fighter jets are hampered without the support of advanced, multipurpose, multitasking radars that will provide the country with a complete, accurate and reliable air situation picture.

Established over five decades ago, ELTA has since amassed a rich technological heritage and developed a culture of innovation. We are thus able to offer the experience, know-how, and proven systems to deliver an optimized solution tailored to the complex operational requirements in the Black Sea Region. Beyond the upgrade of Bulgaria’s air and missile defense systems in accordance with military objectives, every state must safeguard its civil aviation and strategic infrastructure such as power plants from air threats. ELTA addresses these needs while at the same time providing Bulgaria with high value by contributing to local economic growth and export potential.

How urgent is the project for the radars?

Such projects normally take time. The RFI stage was finalized at the beginning of 2020 but the RFP stage was delayed due to the political situation. At the end of the day, the time when the new F-16s will land in Bulgaria is not so far away and again, without new 3D radars these new fighter jets will not be able to be properly deployed. Hopefully, the new Bulgarian Parliament will restart the process in the very nearest future and approve the budget for this important investment.

What is your main proposal to Bulgaria and what benefits and advantages are you offering in comparison with your competitors?

First and foremost, our MMR radar system is the only modern radar that is battle-proven. It has accrued extensive operational experience in Israel and around the world. The MMR radar detects airborne threats, classifies them, calculates their threat level, and provides essential data that enables systems to neutralize multiple threats simultaneously, including cruise missiles and small, slow and low UAVs.

MMR is probably the world’s most combat-tested radar system in service today, with more than 2,000 verified interceptions in all weather conditions with continues operation, including low radar cross section UAVs, and this does not even include the high volume of interceptions during the tension between Israel and Hamas in the past spring. As you know, Israel was under a heavy barrage of rocket fire and air attack in May 2022. It was targeted with over three thousand rockets fired from the Gaza Strip into its territory but Iron Dome intercepted more than one thousand, representing about 90 percent of those rockets determined to pose a threat. A significant part of this success story is attributed to ELTA’s MMR, which is a core component of Iron Dome. The MMR enabled the system to determine rapidly which incoming rockets were likely to strike built-up areas and which would land harmlessly on open ground. Moreover, in parallel the MMR systems detected and tracked all air traffic, including Israeli fighters and UAVs as well as the small, low RCS UAVs used by Hamas. The ELTA solution saved many lives and prevented serious casualties. We are proposing to Bulgaria our most advanced MMR radar system. Our MS-MMR radar from the same family adds additional electro-optic and SIGINT sensors, which are also based on cutting-edge technologies, to provide our customers with superior air defense and surveillance performance.

Secondly, We ensure future upgradability by basing our systems on an open architecture that facilitates future software upgrades. Furthermore, it enables communication with existing and/or future systems, providing our customers with complete independence in configuring the system to their specific requirements.

Thirdly, our radar is interoperable with NATO systems. In recent years, similar systems have been incorporated into the command and control systems of NATO’s member countries, such as Czech Republic, Slovak Republic, Hungary, Canada, USA, and many other countries.

And last but not least, while implementing such landmark projects we always cooperate with local industries. So, we will partner with Bulgarian suppliers and subcontractors. And that’s not all, ELTA is in Bulgaria to stay and this means transferring knowledge for local production, maintenance, after salles support and future export by creating joint ventures with local industries, as we have already done in many other countries for the benefit of the local economy. Companies from the Bulgarian industrial complex will be included in ELTA’s global supply chain. With yearly sales of over $1.7 billion, 4200 skilled employees, and 85% of its production exported worldwide, ELTA is a leading defense corporation that offers enormous potential to Bulgarian industry.

The question with industrial cooperation is always key when we speak about the acquisition of new defense capabilities and military projects. Could you elaborate a little bit more on this issue?  

If the contract for the modernization of the Bulgarian radar systems is awarded to ELTA Systems, we plan to assign a large portion of the contract value to Bulgaria’s defense industries. We see this as being very important for both ELTA and the Bulgarian industries. 3D Radar system components will be produced in collaboration with Bulgarian manufacturers under the professional guidance of ELTA and the Ministry of Defense. We have already signed memorandums and agreements with several Bulgarian companies. In addition, ELTA is ready to transfer radar know-how which will assist Bulgarian industry in providing local maintenance and support of the systems for their entire service life.

All the above is only a piece of the large puzzle we can create. Eventually, Bulgarian companies will become part of our global supply chain and participate in other programs we are engaged in around the world. We are seeking local partners in the area of electronics, mechanics, radio and microwave modules, with which we would like to cooperate in the long-term. This is one of my main tasks now. Our collaboration with the local industry usually leads to further engagement in upcoming projects and adds significant value because this allows the companies to create well-paid jobs and new orders for local suppliers, generating more income and prosperity for the local economy.

Where is the balance between spending enormous funds for expensive military equipment instead of providing funds for the people and businesses badly impacted by this or that crisis?

At ELTA we come from a country that has invested heavily in defense and security due to the situation in our region. While we have minimal resources compared to the US and other larger nations, if you study our legacy and the story of Israel’s economic development, you will find that a large part of Israel’s economic success over the years can be attributed to our military-industrial efforts, which very often trigger innovation and drive our entrepreneurs and engineers to develop new technologies and solutions. We are known as “The Startup Nation” and much of our success is rooted to a large extent in the defense sector. With specific regard to Bulgaria, we hope that decision makers will take into consideration that the selection of a vendor, which can supply a technically superior solution while investing in and transferring technology to the local economy, will actually offset the cost of the program in the long term by generating economic growth and creating new job opportunities in Bulgaria.

Looking at this issue from a practical perspective, economic growth and prosperity are very much linked to stability, which in turn requires adequate defense capabilities. Our radar systems protect not only people and military objects but strategic infrastructure and industrial complexes too. Take for example the attack on the Aramco oil processing facilities in Saudi Arabia in 2019. UAVs were used in a synchronized and very accurate attack against the country’s core economic assets. As a result, 50% of the oil output was impacted. This would not have happened if the state had established accurate and reliable air surveillance to guide its air defenses. The 3D MMR radars we are proposing to Bulgaria detects and tracks even low, slow and small UAVs, which can be deployed by enemies. We can conclude that in addition to generating economic growth you have to secure it too. Modern threat scenarios should also take into consideration the state’s strategic infrastructure and key economy assets. Attacks such as the one in Saudi Arabia are rare but when they occur, the damage can be devastating.

How does a small country like Israel compete successfully with superpowers on the defense market such as the USA, Russia, China, UK and other European countries that are active in this sector?

Israel has positioned itself as one of the leading exporters of advanced defense solutions worldwide. In fact, we are number one in terms of foreign sales per capita. Israeli military exports reached $8.3 billion in 2020, beyond the fact that there was a fifteen percent spike in the number of agreements signed compared with the previous year during COVID-19. Despite the coronavirus pandemic, Israel cited new markets as the enabling factor in achieving a jump in sales of $1 billion in comparison to 2019[FE1] . According to the recent official figures, radar and early warning systems, along with ammunition and armament, each accumulated sixteen percent of total sales.

The defense industry is a cornerstone of Israel’s security. As such, governmental efforts to encourage innovation, research and development, and international cooperation remain an important factor in its adaptability and success. With a high proportion of engineers and scientists driving the acceleration of technological development, Israeli companies continually develop and produce unique and advanced weapons and defense systems. In keeping with this tradition, ELTA is proud to offer our customers advanced, combat-proven solutions such as the 3D MMR –  which deliver top shelf performance at a reasonable cost.

*Published in an interview by BGlobal Monthly