Israeli company Elbit systems will continue its operations in the Japanese market in spite the decision of local company Itochu to cancel a memorandum of undersetting signed last year with the Israel company.
Due to the conflict in Gaza, Itochu will terminate its strategic partnership with Elbit .
In March 2023, a memorandum of understanding (MoU) on strategic cooperation was signed by Itochu Aviation, Elbit Systems, and Nippon Aircraft Supply .
Tsuyoshi Hachimura, the chief financial officer of Itochu, stated that the company intends to terminate the partnership following the World Court’s decision last month , to order Israel to stop its actions against Palestinians in Gaza and increase aid to civilians .
Japan’s defence spending will increase by more than 16% next year under a record military budget .
With North Korea posing a threat to Japan in the region, the purpose of the funding infusion is to expedite the procurement of different defence systems .
Elbit hoped that the MOU with Itochu will enable it to sign large contracts in air and land systems . Elbit refused to comment on the Issue but a senior defence source said that the Israeli company will continue to operate in the big potential Japanese defence market.
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