Israel’s Ministry of Defense’s Directorate of Production and Procurement (DOPP), in collaboration with the Ministry’s Tank and APC Administration and the IDF’s Technological and Logistics Directorate, on Wednesday announced the signing of a significant agreement with Ashot Ashkelon.
The Ministry’s Director General, Maj. Gen. (Res.) Eyal Zamir signed the contract as part of the ministry’s broader initiative to enhance the capabilities of Israel’s armored vehicles, such as the Merkava tanks and Namer APCs. These vehicles have been demonstrating their effectiveness during the Gaza war.
This transaction is one of several strategic moves by the Ministry of Defense to ensure the IDF’s operational needs are consistently met, both now and in the future.
Under the agreement, Ashot Ashkelon will produce and supply essential components for Merkava tanks and Namer APCs, including 1,200 and 1,500 horsepower transmissions, suspensions, and drive systems, with a total value exceeding $23 million. The deal also covers the procurement of spare parts and the refurbishment of advanced systems, all of which will be delivered to the IDF over the next two years.
Ashot Ashkelon, a manufacturer specializing in complex drive systems, transmissions, and other specialized components for armored vehicles, plays a vital role as a supplier in the IDF’s armored vehicle programs, ensuring the operational readiness and durability of these key defense assets.
Ashot Ashkelon was founded in 1951 as Kaiser-Ilin Industries by businessman Efraim Ilin. It assembled Kaiser-Frazer cars and Mack Trucks under license. Kaiser-Ilin had two production sites, one in Haifa (opened in 1951) where the vehicle assembly line was based, and one in Ashkelon (opened in 1960), for manufacturing spare parts for automotive equipment, gears, and metal-working machinery.
In 2011, Ashot acquired Illinois-based Reliance Gear Corporation, a manufacturer of custom and precision gearing that was founded in 1965, which today operates as a fully owned subsidiary of Ashot.
