Elbit Systems wins NIS 1.25b IDF munitions contract

IMI mortar shell Photo: IDF Spokesman

The contract is part of the agreement for the sale of Israel Military Industries to Elbit Systems by the state.

Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has been awarded a contract by the Directorate of Production and Procurement of the Israeli Ministry of Defense valued at approximately $333 Million (NIS 1.25 billion) for the supply of ammunition to the Israeli Defense Forces. The five-year contract, work on which will commence in 2026, is a continuation of a multi-year contract with the Ministry of Defense.

Elbit Systems recently completed the acquisition of Israel Military Industries (IMI) from the state for NIS 1.9 billion. Ministry of Defense sources said the munitions order from Elbit represented fulfilment of the agreement for the privatization of IMI, and said it was intended to ensure the success of the process, which includes the vacation of IMI land near in the Ramat Hasharon area and the transfer of IMI factories to Ramat Beka in the Negev. The munitions that are the subject of the current order will be manufactured at the new plants.

The order is intended to renew the IDF's stocks as part of its procurement program for the next decade. "This agreement is a win-win for the military and the state, as it ensures continuity of supply of munitions for all ground forces units, and it will support the nationally important process of moving IMI's plants to the Negev," Avi Dadon, head of the Directorate of Production and Procurement, said this morning.

Published by Globes, Israel business news - en.globes.co.il - on January 6, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

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IMI mortar shell Photo: IDF Spokesman
IMI mortar shell Photo: IDF Spokesman
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