About Eltek

Eltek Ltd. manufactures and supplies technologically advanced custom made circuitry solutions for use in sophisticated and compact electronic products. The company provides specialized services and is a solution provider in the PCB business, mainly in Israel, Europe, North America, and Asia. The company's focus is on short run quick-turnaround, prototype, pre-production and low to medium volume runs of high-end PCB products for high growth, advanced electronics applications, mainly flex-rigid PCBs. The company designs and develops innovative manufacturing solutions pursuant to complex interconnect requirements of original equipment manufacturers and provides its customers with a wide range of custom designed PCBs, including complex rigid, double-sided, and multi-layer PCBs, as well as flexible circuitry (flex and flex-rigid boards) made of several types of high-performance base material. To complement the company's quick-turnaround, prototype, pre-production and low to medium volume production capability and provide its customers with single source service, it also acts as an agent for the importation of PCBs from South East Asia when customers require high volume production runs. Sales, Customers and Marketing Sales: In the year ended December 31, 2022, the primary industries for which the company produced PCBs were defense and aerospace equipment (48.7% of production), medical equipment (8.0% of production), industrial equipment (7.1% of production), and distributors, contract electronic manufacturers and others (36.2% of production). Customers: During the year ended December 31, 2022, the company provided PCBs (printed circuit boards) to approximately 130 customers in Israel and approximately 81 customers outside of Israel. The company's customers outside of Israel are located primarily in North America, the Netherlands, India, Italy, Romania, Uruguay, China, and South Africa. Marketing: The company markets and sells its products primarily through its direct sales personnel, sales representatives and through PCB trading and manufacturing companies. The company has eleven persons involved in sales, of which ten persons are located in Israel and two persons are located in the United States. In North America, the company markets and sells its products through Eltek USA Inc., as well as through independent local sales representatives. PCB trading and manufacturing companies act as distributors of the company's products in the Netherlands, Italy, and South Africa. In India, the company markets its products through a local sales representative. The company maintains technical support services for its customers worldwide. The company also maintains customer service support centers that handle all logistical matters relating to the delivery of its products and receives and handles complaints relating to delivered products. The company's customer service personnel consist of five persons. The company's strategy focuses on the high end of the PCB market, mainly in flex-rigid PCBs, in which margins are better. The company focuses on its marketing efforts on the defense and medical industries. To penetrate the U.S. defense market, the company applied for ITAR registration from the U.S. Department of State, Bureau of Political-Military Affairs, which the company received in January 2009. ITAR regulates the manufacture, export and transfer of defense articles, and information and services. International Traffic in Arms Regulations (ITAR) is a set of the U.S. government regulations that controls the export and import of certain defense-related articles and services. The regulations restrict sensitive information and technologies only to be shared with the U.S. persons, unless special approval is acquired. To qualify for ITAR registration, the company met strict requirements for corporate structure, security, record keeping and procedures to allow it to sell its PCBs for use in the U.S. defense products. In November 2009, the company became certified to the AS 9100B quality management standard for the avionic industry in order to strengthen its position in the avionic and aerospace market in North America and Europe. In January 2014, the company received accreditation from Nadcap, a global cooperative accreditation program for aerospace engineering and related industries, for its advanced circuitry solutions, including rigid and flex-rigid printed circuit boards. The company has a dedicated sales team for commercial activities, which cooperate with reliable PCB manufacturers from the Far East. Competition In the Israeli market, the company mainly competes with the Israeli firm PCB Technologies Ltd. In the European market, the company mainly competes with Advanced Circuit Boards NV (Belgium), Dyconex and Cicor (Switzerland), Graphics, Exception PCB and Invotec (the United Kingdom), Cistelaier and Somacis (Italy), and Schoeller-Electronics GmbH (Germany). In the North American market, the company mainly competes with TTM, Inc.; KCA Electronics Inc.; Lenthor Engineering; Printed Circuits, Inc.; and Teledyne. History Eltek Ltd. was founded in 1970. The company was incorporated under the laws of the state of Israel in 1970.