Elbit Systems (Nasdaq: ESLT; TASE: ESLT) announced today that, under an agreement between the Israeli Ministry of Defense and the Netherlands Ministry of Defense, it had won a contract worth $305 million to supply Precise & Universal Launching System (PULS) artillery rocket systems to the Royal Netherlands Army. The contract will be performed over a period of five years.
Minister of Defense Yoav Gallant approved the agreement, the formulation of which was led by Ministry of Defense director general Gen. (res.) Eyal Zamir and which was signed in the Netherlands by the head of SIBAT (the ministry’s International Defense Cooperation Directorate), Brig. Gen. (res.) Yair Kulas with the commander of the Royal Netherlands Army ground forces.
Under the contract, Elbit Systems will supply 20 PULS artillery rocket systems integrated on the COMMIT (previously DMO) selected truck platform, as well as rockets and missiles of various ranges, and training and support services.
Elbit’s PULS is a system designed with an open architecture approach, supporting future growth, the ability to integrate legacy C4i (command, control, communications, computers, and intelligence) solutions, and the flexibility to adapt to specific customer requirements.
"PULS provides a comprehensive, cost-effective solution, supporting the firing of both free-flying rockets and precision guided rockets and missiles ranging from 12 kilometers and up to 300 kilometers. The PULS launcher is a fully adaptable launching system and can be mounted on a broad range of wheeled and tracked platforms, providing a significant reduction in maintenance and training costs for legacy fleets," Elbit Systems’ announcement states.
This is the first defense export agreement between Israel and the Netherlands, and one of the largest agreements with a European country in recent years. The Netherlands has been a NATO member since 1949. The Russian invasion of Ukraine in February 2022 made clear to the members of the alliance, particularly in Europe, the need to upgrade their armed forces and weaponry.
The sale of the PULS system to the Netherlands could presage similar deals with other European countries in the near future. Meanwhile, Russia has been signing weapons agreements of all kinds with Iran, and relations between the two countries continue to grow closer.
Minister of Defense Yoav Gallant said, "The defense establishment continues to be a source of national pride and success for the State of Israel. Thanks to the defense solutions developed and produced by our defense companies, we are strengthening our ties with other countries, bolstering our security, and strengthening Israel’s standing. I welcome the important agreement signed with the Netherlands Ministry of Defense, and I am sure that we shall continue to deepen the ties between our two countries."
Elbit Systems CEO Bezhalel (Butzi) Machlis said, "The acquisition of Elbit Systems' PULS solution will enhance the Royal Netherlands Army's ability to provide effective indirect fire support. It will also provide interoperability with NATO customers that have acquired these systems. This contract further validates Elbit Systems' cutting-edge military technologies and our strong partnerships with NATO countries across Europe."
Elbit Systems’ share price is up nearly 1% on the Tel Aviv Stock Exchange.
Published by Globes, Israel business news - en.globes.co.il - on May 18, 2023.
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