Israeli defense electronics company Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) announced today that it has been awarded an ammunition contract by the Production and Procurement Directorate of the Israeli Ministry of Defense worth $144 million. Elbit will supply small caliber ammunition to the Israeli Defense Forces.
Work will begin in 2021 on a five year contract, which will be a continuation of the existing multi-year contract with the Israeli Ministry of Defense. The work will be carried out in Elbit's Nof Hagalil (Upper Nazareth) factory, which became part of the company in 2018 as part of the NIS 1.9 billion acquisition from the Israeli government of IMI Systems.
Israel's Ministry of Defense said that the new contract will ensure the continued supply of ammunition to the IDF's units. The Ministry of Defense's Production and Procurement Directorate head Avi Dadon said, "Even in a complex budgetary reality, the Defense Ministry is working to fulfil as many multi-year agreements as possible, alongside its support for the IDF, it is protecting the vital and quality production lines of the defense industries."
Published by Globes, Israel business news - en.globes.co.il - on January 1, 2020
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