Israel’s Defense Ministry has signed a $340 million ammunition deal with Elbit Systems which will include establishing a new factory in Israel to produce ammunition and munitions.
Ministry director-general Maj. Gen. (Res.) Eyal Zamir signed the contract in a ceremony at the Israel Ministry of Defense headquarters in the Kirya Base in Tel Aviv.
The event 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 Defense Ministry strategy to ensure a steady supply of critical materials for the IDF’s strength and longevity during ongoing and future operations,” the ministry said in a communique.
The Biden Administration began slow-walking arms deliveries to Israel several months ago, and continues to withhold a shipment of essential 2,000-pound “bunker buster” bombs which are needed to eliminate terrorist attack tunnels in Gaza and southern Lebanon.
“This deal marks a significant milestone in the Ministry of Defense’s vision, initiated under Minister Yoav Galant’s guidance, to ensure the continuous advancement of the IDF’s operational capabilities,” Zamir said.
“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.”
Elbit Systems president and CEO Bezalel (Butzi) Machlis add that the agreement complements the ‘Iron Sting’ deal reported earlier this week.
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“We are continuing to expand our production facilities to meet our commitments to customers in Israel and abroad,” Machlis said. “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.”
