Haifa, Israel. Elbit Systems Ltd. announced August 1, that it was awarded a contract in an amount of approximately $340 million for the supply of ammunition to the Israeli Ministry of Defence (IMOD). The contract will be performed over a period of 10 years. Elbit Systems will establish a manufacturing facility to produce the ammunition.
Shortly after the war broke out in October 7, the IDF found itself dealing with a severe shortage of basic ammunition like 155 mm rounds. In recent months the ministry of defence made big efforts to close the big gap and in the meantime asked for emergency shipments of ammunition from the US. This explains the statement released today by the ministry about a deal to buy ammunition from Elbit Systems.
In the future the ministry will have to make better calculations and understand that wars can last many months, a senior source said.
Director General of the Israel Ministry of Defence, Maj Gen (Res.) Eyal Zamir, signed an ammunition deal with Elbit Systems on July 31, 2024 worth approximately $340 million. As part of this deal, Elbit Systems will establish a new facility in Israel to produce ammunition and munitions.
The signing ceremony was held at the Israel Ministry of Defence headquarters in the Kirya Base in Tel Aviv and was also attended by Zeev Landau, Head of the Directorate of Production and Procurement (DOPP) at the IMoD, Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, Yehuda (Udi) Vered, General Manager of Elbit Systems Land, Dekel Cohen, Head of the Finance Department at the IMoD and other senior officials.
This procurement is part of the IMoD’s strategy to ensure a steady supply of critical materials for the IDF’s strength and longevity during ongoing and future operations.
Director General of the Israel Ministry of Defence, Maj Gen (Res.) Eyal Zamir commented, “This deal marks a significant milestone in the Ministry of Defence’s vision, initiated under Minister Yoav Galant’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 defence exports.”
President and CEO of Elbit Systems, Bezhalel (Butzi) Machlis said, “This agreement, which complements the ‘Iron Sting’ deal reported earlier this week, reflects Elbit’s deep connection with the Israeli defence establishment and the IDF. We continue to expand our production facilities to meet our commitments to customers. I thank the IDF and the Israel Ministry of Defence for their trust in our management and employees. Elbit Systems continues to develop, manufacture and deliver top-tier technological solutions and products that are combat proven, to our customers in Israel and worldwide.”
Elbit Systems is a leading global defence technology company, delivering advanced solutions for a secure and safer world. Elbit Systems develops, manufactures, integrates and sustains a range of next-generation solutions across multiple domains.
Driven by its agile, collaborative culture, and leveraging Israel’s technology ecosystem, Elbit Systems enables customers to address rapidly evolving battlefield challenges and overcome threats. Elbit Systems reported as of March 31, 2024 approximately $1.6 billion in revenues and an order backlog of $20.4 billion.
-The writer is an Israel-based freelance journalist. The views expressed are of the writer and do not necessarily reflect the views of Raksha Anirveda
