Israel purchasing another $340 million-worth of ammunition from Elbit
Israel purchasing another $340 million-worth of ammunition from Elbit
As part of the transaction, Elbit Systems will construct a new factory for the production of armaments in the industrial area it is establishing in the Negev. The new facility is expected to open at the end of the year, and its primary production activities will be managed from there.
A few days after receiving an order from the Ministry of Defense for over NIS 800 million for the supply of precision mortar bombs of the "Iron Sting" model, Elbit Systems secured another significant order worth NIS 1.5 billion for the supply of various types of armaments for use by the IDF.
As part of the deal, which was signed by Elbit's President and CEO Bezhalel Machlis and the Director General of the Ministry of Defense Major General (ret.) Eyal Zamir, Elbit will build a new factory for armaments production in the industrial park it is developing in Ramat Beka in the Negev. The new facility is scheduled to open by the end of the year, and most of its production activities are expected to be conducted from there.
The transfer of Elbit's operations to Ramat Beka was agreed upon with the Ministry of Defense as part of a transaction for its purchase of an industrial plant from the state at the end of 2018. The plant in the south was supposed to open earlier, but delays occurred due to the war.
Due to the war, which created significant demand from the IDF and the defense establishment for armaments—mainly 122 mm and 155 mm shells—the Ministry of Defense asked Elbit to continue operating the IMS production site in Ramat Hasharon, which Elbit had been expected to vacate under its commitment to the state.
In response to the need for a steady supply of armaments to the IDF, the Ministry of Defense requested that the Israel Lands Authority (RMI) exempt the defense company from heavy fines for not vacating the Ramat Hasharon compound for the next two years. The Israel Lands Authority reacted with concern, stating that this situation would hinder its ability to prepare the land in Ramat Hasharon for sale and the construction of new housing units.
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The defense establishment views the continuation of Elbit's production activity in Ramat Hasharon, alongside the opening of its new factories in Ramat Beka, as a means to accelerate the IDF’s armament process, which is necessary due to the ongoing war and the need to replenish its stocks.
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems: "We continue to expand our production infrastructure and capabilities to support our customers. I thank the IMOD for the trust placed 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."
