VZCZCXYZ0014
PP RUEHWEB

DE RUEHTV #3242/01 3120914
ZNR UUUUU ZZH
P 080914Z NOV 07
FM AMEMBASSY TEL AVIV
TO RUEHC/SECSTATE WASHDC PRIORITY 4094
INFO RUEAIIA/CIA WASHDC
RUCPDOC/USDOC WASHDC
RUEKJCS/SECDEF WASHDC
RUCNFB/FBI WASHDC
RHMFIUU/HQ BICE INTEL WASHINGTON DC

UNCLAS TEL AVIV 003242 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
STATE FOR PM/DTCC (BLUE LANTERN COORDINATOR, STITZIEL) 
STATE FOR NEA/IPA (PECCIA) 
 
E.O. 12958: N/A 
TAGS: ETTC KOMC IS
SUBJECT: RESULTS OF BLUE LANTERN LEVEL 3 PRE-LICENSE 
END-USE CHECK ON APPLICATION 050061813 
 
REF: STATE 135268 
 
------- 
SUMMARY 
------- 
 
¶1. (SBU) Acting on instructions in reftel, Embassy Tel Aviv 
Blue Lantern Officer visited Dead Sea Magnesium (DSM), 
Limited's magnesium plant in Sodom, Israel on November 6, and 
interviewed DSM's Procurement and Contracts Manager, Itzik 
Ben-Lulu, and the head of DSM's Electrolysis and Chlorination 
Plant, Dima Bakman.  Blue Lantern Officer also saw firsthand 
the lithium sulfur dioxide batteries that DSM wishes to 
procure, and how they are being used for the blowers on 
individual protection suits.  Based on what Blue Lantern 
Officer observed during the site visit, the proposed 
transaction appears legitimate, and Blue Lantern Officer 
recommends issuance of the required export license.  END 
SUMMARY. 
 
--------------------------------------------- - 
RESULTS OF SITE VISIT TO DSM'S MAGNESIUM PLANT 
--------------------------------------------- - 
 
¶2. (U) During Blue Lantern Officer's November 6 site visit to 
DSM's magnesium plant -- located on the southern shore of the 
Dead Sea in Sodom -- DSM Procurement and Contracts Manager 
Itzik Ben-Lulu provided an overview of the plant's history 
and function.  Construction on the magnesium plant began in 
1994 and was completed in 1996.  It is a joint venture 
between Israel Chemicals, Limited (ICL) -- a public company 
traded on Israel's stock exchange and owning 65 percent of 
DSM's equity -- and Volkswagen AG, which owns 35 percent of 
DSM's equity.  ICL is a multinational mining company with 
numerous mining operations, production plants and worldwide 
sales and marketing organizations.  ICL's corporate 
headquarters are located in Tel Aviv.  Volkswagen AG is one 
of the world's leading automotive manufacturers. 
 
¶3. (U) DSM's facilities are integrated into the larger ICL 
industrial complex on the southern shore of the Dead Sea. 
This complex includes the 75-year old Dead Sea Works -- a 
global producer of five different types of potash -- and Dead 
Sea Bromine, the largest producer of bromine in the world. 
Magnesium chloride is also produced on the complex's grounds. 
 DSM's annual production capacity is 35,000 tons of 
magnesium.  It produces ingots and T-bars of various sizes 
that are used in the alloying of aluminum, die casting, and 
cathodic protection alloys. 
 
¶4. (SBU) Dima Bakman, DSM's head of its Electrolysis and 
Chlorination Plant, gave Blue Lantern Officer a brief tour of 
the plant, and explained that the magnesium is extracted from 
Dead Sea salts through electrolysis, a byproduct of which is 
the production of chorine gas.  The 10 workers on site who 
oversee the electrolysis wear white "Supergum" personal 
protection suits that include masks and a BL 90 blower unit 
they wear on their backs like a small backpack.  Each of 
these units is powered by a Model 5800 BT lithium sulfur 
dioxide battery of the type that DSM wishes to procure from 
Saft America, Incorporated through its agent in Israel, UMS. 
Bakman showed Blue Lantern Officer how the batteries fit into 
and power the blowers.  He explained that each of the ten 
workers uses one battery per month, and so DSM needs 
approximately 120 batteries per year.  Ben-Lulu said that DSM 
has ordered these kinds of batteries once or twice before, 
and that DSM also used different blowers in the past.  Bakman 
lamented that he has to continually order these disposable 
batteries, and said he would prefer if he could obtain 
rechargeable batteries.  (NOTE:  "Supergum" -- the producer 
of the personal protection suits -- is an Israeli company. 
The BL 90 blower is an essential element of the suits they 
produce.  The suits that Blue Lantern Officer observed were 
white-colored variants of the military suits featured on 
Supergum's website, at 
www.global-defence.com/2003/supergum profile.htm.  END NOTE.) 
 Ben-Lulu said that the batteries, once received, will be 
stored in a locked room in a warehouse on DSM's property. 
The warehouse is guarded, and one of DSM's employees is 
responsible for accounting for the items stored in it. 
 
¶5. (SBU) After the tour, Ben-Lulu reviewed the paperwork on 
the proposed battery order.  He provided Blue Lantern Officer 
a copy -- in Hebrew -- of DSM's purchase order to UMS.  Page 
 
2 of the purchase order shows that the order is for Model 
5800 BT lithium sulfur dioxide batteries, and notes that they 
will be used to power pressure blowers.  (NOTE:  Blue Lantern 
Officer has sent this two-page document by FAX to PM/DTCC, 
care of Judd Stitziel.  END NOTE.) 
 
¶6. (SBU) Ben-Lulu noted that DSM has imported other 
controlled items requiring export licenses, including some 
Wilden pumps, which are used in the pumping of hydrogen 
chloride solution.  He provided Blue Lantern Officer with 
copies of a procurement order from DSM to Wilden for pumps, 
as well as an end-use certificate for the pumps.  These 
documents -- as well as those noted in paragraph 5 -- were 
printed off of his computer.  Blue Lantern Officer observed 
that Ben-Lulu keeps hard copies and electronic copies of 
documentation related to DSM's procurement operations, and 
knows how to access them.  (NOTE:  The two documents 
concerning the Wilden pumps were sent by FAX to Judd Stitziel 
in PM/DTCC.  END NOTE.) 
 
---------- 
CONCLUSION 
---------- 
 
¶7. (SBU) Embassy Blue Lantern Officer believes DSM's proposal 
to procure the 48 lithium sulfur dioxide batteries is 
legitimate, and that the batteries will be used in the 
blowers that are part of the personal protection suits worn 
by the workers in DSM's electrolysis and chlorination plant. 
Embassy Blue Lantern Officer therefore recommends issuing the 
export licenses.  Ben-Lulu would welcome any clarification 
that could be provided on whether he can receive a "blanket 
export license" to cover future orders of Model 5800 BT 
lithium sulfur dioxide batteries, as well as the Wilden pumps 
that DSM is ordering. 
 
********************************************* ******************** 
Visit Embassy Tel Aviv's Classified Website: 
http://www.state.sgov.gov/p/nea/telaviv 
 
You can also access this site through the State Department's 
Classified SIPRNET website. 
********************************************* ******************** 
JONES