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Kader Factory for Developed Industries

Other Name: Kader Factory; Kader Factory for Development Industries; Factory 72
Location: Heliopolis
Subordinate To: Arab Organization for Industrialization (AOI)[1]
Size: Large complex of factories
Facility Status: Operational, involved in missile production

Initially established in 1949 to produce aircraft, the Kader Factory for Developed Industries currently specializes in the design, development, and production of armored vehicles, guidance systems for aircraft, and aircraft bombs.[2] The company's website makes no mention of involvement with Scuds or other ballistic missiles.[3]

However, in March 1999 the U.S. State Department sanctioned the Kader Factory for transferring dual-use U.S. technology and missile components to North Korea.[4] The sanctions did not deter additional procurement; from 1999 to 2001 two North Korean agents transferred illicit goods to the factory.[5] The couple set up a front company in Slovakia that transferred over 10 million dollars of dual-use missile technology and parts, including chemicals, trucks, pumps, measuring devices, high speed cameras, and heavy vehicle parts. A tangled web of front companies and an overseas bank located in Singapore helped disguise the transactions,[6] demonstrating the difficulties the international community faces in enforcing the MTCR.

Sources:
[1] Hammam Nasr, "Egypt: Military Factories," International Market Insight, 1998, www.fas.org.
[2] Hammam Nasr, "Egypt: Military Factories," International Market Insight, 1998, www.fas.org.
[3] Bertil Lintner and Steve Stecklow, "North Korea: Paper Trail Exposes Missile Merchants," Asian Pacific Media Services Limited (Cairo), 13 February 2003, www.asiapacificms.com.
[4] "Israel, USA claim Egyptian missile links with N Korea" Jane's Defense Weekly 33, No. 8, 23 February 2000, www.janes.com; "Egypt: Production Capability," Jane's CBRN Assessments, 5 December 2008, www.janes.com.
[5] Bertil Lintner and Steve Stecklow, "North Korea: Paper Trail Exposes Missile Merchants," Asian Pacific Media Services Limited (Cairo), 13 February 2003, www.asiapacificms.com.
[6] Bertil Lintner and Steve Stecklow, "North Korea: Paper Trail Exposes Missile Merchants," Asian Pacific Media Services Limited (Cairo), 13 February 2003, www.asiapacificms.com.

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This material is produced independently for NTI by the James Martin Center for Nonproliferation Studies at the Monterey Institute of International Studies and does not necessarily reflect the opinions of and has not been independently verified by NTI or its directors, officers, employees, or agents.

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