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‘Puzzling decision’ – US sanctions Iron Dome company

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“This is an unfounded [penalty], which may lead to the closure of the factory,” warned the head of the Association of Manufacturers in Israel.

By World Israel News Staff

The American branch of an Israeli company manufacturing critical components for the Iron Dome was hit with crippling sanctions by the U.S. government, which may lead to the collapse of the organization.

Finkelstein Metals, which manufactures the metal bars used in Iron Dome batteries, is the only Israeli company that produces brass, bronze, and copper alloy products, according to a Maariv report.

The company, which is based near the northern Israeli city of Afula, also has a factory in the state of Illinois.

The complaint against Finkelstein Metals is centered on the company’s location in a specially designated industrial zone in Israel, where it receives subsidies for operations from the Israeli government.

Due to those subsidies, the complaint charges, Finkelstein’s pricing in the U.S. should be much lower. The sale price of Finkelstein Metals products have now been deemed “inflated,” which paves the way for the company to be penalized or even barred from operating in the U.S..

Notably, Finkelstein Metals holds just a 3% market share in its sector in the U.S., though those sales represent 75% of the company’s annual revenue.

According to Maariv, Finkelstein Metals has already been sanctioned with serious fines, and is now the subject of an ongoing investigation.

Ron Tomer, the head of the Association of Manufacturers in Israel, told Maariv that the decision was “unprecedented and puzzling,” and warned that it may have a serious impact on other Israeli manufacturers that operate in or export their goods to the U.S.

“This is an unfounded [penalty], which may lead to the closure of the factory,” Tomer said.

“If this serious case is successful, it may harm other Israeli companies, and this is contrary to the trade agreements” between the U.S. and Israel, he added.

The move to sanction Finkelstein Metals comes weeks after the Biden administration lobbied sanctions against a number of settlers, whose Israeli bank accounts were then closed.