About IC Overview

Industrial Cooperation is the umbrella term for a broad range of industrial and commercial practices demanded as a condition of supply of major capital equipment. Industrial Cooperation is enforced as legal or commercial requirements obliging contractors to assist the purchasing country's local economy. Industrial Cooperation is a common requirement in major capital equipment contracts whereby Governments require international contractors to reinvest part of the contract value into the local economy.

Industrial Cooperation is a practice followed by more than 50 governments and more and more countries recognize the benefits that such a policy can bring to the economy. Furthermore, industrial cooperation, when implemented successfully, can provide an important political leverage. Each country has its own regulatory framework regarding industrial cooperation with varying degrees of complexity.

Contractors need to have a thorough knowledge of the procuring country's strategic goals and the key terms of the country's legislation, in order to craft a competitive and compatible proposal that would meet the country's requirements.

In most cases, Contractors either cooperate with Governmental or Industrial organizations or utilize local consultancy companies in order to navigate through the complex legislation and bureaucratic channels of each particular country and locate areas of potential cooperation with local industrial companies.