An ammunition deal worth approximately $340 million was signed between the Israeli Defense Ministry and the Israel-based international military technology company Elbit Systems on Wednesday, the Defense Ministry announced on Thursday.
According to the Defense Ministry, the procurement is part of the ministry's strategy to ensure a steady supply of critical materials for the IDF's strength and longevity during ongoing and future operations.
As part of the deal, Elbit is expected to establish a new facility in Israel to produce ammunition and munitions.
A signing ceremony was held at the Defense Ministry headquarters in the Kirya Base in Tel Aviv, during which the Director General of the Israel Ministry of Defense, Maj. Gen. (Res.) Eyal Zamir, signed with a military technology company.
In response to the deal, Zamir underscored its significance, stating that it "marks a significant milestone in the Defense Ministry's vision, initiated under [Defense] Minister Yoav Gallant's guidance, to ensure the continuous advancement of the IDF's operational capabilities."
"We are committing millions to build and expand production lines, supporting our long-term objectives. Beyond addressing immediate security needs, this investment will stimulate the economy, create new jobs, and drive future growth in defense exports," Zamir emphasized.
Plans to expand defense initiatives with Israel in the future
President and CEO of Elbit Systems, Bezalel (Butzi) Machlis, acknowledged the company's relationship with Israel's defense and highlighted that it plans to expand initiatives in the future with the IDF.
“This agreement, which complements the ‘Iron Sting’ deal reported earlier this week, reflects Elbit's deep connection with the Israeli defense establishment and the IDF," Machlis explained.
"We continue to expand our production facilities to meet our commitments to customers in Israel and abroad. I thank the IDF and the Israel Ministry of Defense for their trust in Elbit, which consistently works to develop and deliver leading-edge and innovative technological solutions that prove their worth time and again," he said.