Israel water tech thrives in weakened economy

By Ari Rabinovitch
November 18, 2009 
http://bit.ly/Israel-water-tech

TEL AVIV (Reuters) - Israel's water technology sector has prospered
despite the global financial crisis, largely due to global stimulus 
packages and penetration in developing countries, officials said on 
Wednesday.

Though affected by a slowdown in spending in the country and 
throughout the world, Israel's Ministry of Industry and Trade said 
there is an "opposite and strong trend" in the demand for water 
technologies that will generate growth in companies.

At least half of Israel's water industry leaders will present sales 
growth in 2009 despite the global crisis, the ministry projected 
at its annual WATEC conference in Tel Aviv.

Bank of Israel Governor Stanley Fischer said this week Israel's 
economy is recovering faster from the financial crisis than many 
countries, due in part to strong exports in Israel's high-tech sector.

But this year, for the first time, a water recycling company holds 
the spot of Israel's fastest growing technology company.

"In this regard, cleantech has surpassed high-tech for the 
first time," Oded Distell, director of Israel's national water 
technology programme, told Reuters.

Israel expects to export $2.5 billion in water technology annually 
by 2011, Distel said.

Water recycling company Aqwise, whose system breeds bacteria 
to break down organic waste, saw its sales increase 50 percent 
in 2009, said Chief Executive Officer Elad Frenkel, capping 
five years of growth that put it at the top of the list.

Frenkel said Aqwise, founded in 2000, increased revenue by 
investing resources in Latin American and Asian markets 
while more developed regions, like Europe, were still hurting 
from the gloomy economic climate.

Ori Yogev, a top economic advisor to Israeli Prime Minister 
Benjamin Netanyahu, told Reuters that water companies took 
a hit in the last quarter of 2008 and first quarter of 2009.

"But the damage was less than in other sectors, largely thanks 
to increased spending by governments," Yogev said, adding 
that water companies benefit from both infrastructure and 
cleantech spending, both cornerstones of stimulus packages.

Yogev in 2006 founded Whitewater, a technology group that 
deals with water management, security and treatment. 
He expects Whitewater to post more than 10 percent sales 
growth in 2009.

Irrigation company NaanDan Jain, a unique venture owned 
by the Israeli agricultural commune Kibbutz Naan and 
India's Jain Irrigation Systems, has also increased its revenue 
with strong sales in areas like Central Asia and South America.

Company CEO Avner Hermoni said NaanDan Jain, estimated 
by Israeli media reports to have annual sales of $100 million, 
has seen a rise of 10 percent since 2008.