Intel Israel signed a $300 million procurement agreement Sunday with the Industry, Trade and Labor’s Ministry Industrial Cooperation Authority .

The five-year supplier development deal, which was signed at a ceremony at the company’s Kiryat Gat production plant, is the third such agreement between Intel and the government since 1996.

“Intel is one of the outstanding companies when it comes to fulfilling reciprocal procurement obligations, going beyond its own duties in the industrial development program,” said ICA head Bar-On. “The constant readiness to make further investments in training of local developers is unequivocal proof of the success of its investment and reciprocal procurement model in Israel, and constitutes a fine example for other companies and financial organizations to follow.”

Intel Israel General Manager Maxine Fassberg called the agreement more proof of the company’s contribution to “equipment procurement, new technologies and Israeli-made products developed with the aid of Intel.”

The agreement follows a recent grant worth $200m., which was awarded by the government, to aid the expansion of Intel’s Fab-28 Kiryat Gat production plant to make it compatible for the manufacturing of next-generation 22-nanometer technology.

In 2010 Intel carried out $264m. in reciprocal procurement of equipment, services, import replacements and local developer training.

The company has made an overall contribution to the local industry worth more than $3.9 billion since 2006, and more than $5b.

since 1996. It has trained more than 500 Israeli developers in the field of new technologies in the last 15 years.

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