The Israeli Ministry of Defense has signed a $340-million ammunition production contract with Elbit Systems amid boycott calls against arms and ammunition supply to Jerusalem due to the Gaza war.
A manufacturing facility will be established under the contract, with supply running through 10 years.
“We continue to expand our production infrastructure and capabilities to support our customers. I thank the [Israeli Ministry of Defense] for the trust placed in our management and employees,” Elbit Systems President and CEO Bezhalel (Butzi) Machlis said.
To Ensure Continuous Supply
It comes days after Elbit was contracted to provide Iron Sting mortar munition to the Israeli Ministry of Defense.
The 120mm laser and GPS-guided munition is already being used by the Israel Defense Forces (IDF) in the ongoing war in Gaza and against the Hezbollah militant group along the northern border.
The procurement is part of Jerusalem’s strategy to secure a steady supply of critical ammunition for the IDF during the current and future operations, the Israeli Ministry of Defense said.
“This deal marks a significant milestone in the Ministry of Defense’s vision, initiated under Minister Yoav Galant’s guidance, to ensure the continuous advancement of the IDF’s operational capabilities,” Director General of the Israel Ministry of Defense, Maj. Gen. (Res.) Eyal Zamir said.
“We are committing millions to build and expand production lines, supporting our long-term objectives. Beyond addressing immediate security needs, this investment will stimulate the economy, create new jobs, and drive future growth in defense exports.”
Boycott Calls
According to Israeli business newspaper Calcalist, arms suppliers from several Western countries have informally stopped supplying weapons and raw materials to Israel.
It follows a group of United Nations experts warning companies supplying arms and ammunition to Israel could be treated as complicit in human rights abuses and violation of international laws.
Moreover, Israel’s prime arms supplier, the US, has also reportedly delayed ammunition shipments to the country.