Israel MOD Signs Two Major Deals with Elbit Systems Totaling Approximately NIS 1 Billion
Haifa, Israel. The Israel Ministry of Defense (IMOD) announced on January 7, signing of two major defense capability agreements with Elbit System, totaling approximately NIS 1 Billion. The agreements were signed by IMOD Director General Maj. Gen. (Res.) Eyal Zamir and Elbit Systems President & CEO Bezhalel (Butzi) Machlis in a signing ceremony.
These strategic agreements are crucial for enhancing the IDF’s operational endurance and force build-up capabilities. They represent a central lesson learned from the war and were implemented following thorough staff work under the direction of the IMOD’s Director General.
Under the first agreement, led by IMOD’s Defense Procurement Directorate (DPD), Elbit Systems will supply the IMOD with thousands of heavy air munitions.
The second agreement, led by IMOD’s Planning Department and Directorate of Defense Research & Development (DDR&D), includes establishing a national raw materials plant to produce raw materials that were sourced mainly from abroad before the war. The new facility will feature advanced production lines for energetic materials that Israel’s defense industry uses. This project is expected to strengthen domestic manufacturing independence and reduce reliance on imported raw materials.
The agreements are a cornerstone in the IMOD’s policy to promote ‘Blue and White’ manufacturing independence and collaboration with local defense industries. The projects are expected to strengthen the economy, expand domestic production lines, and ensure optimal response to the IDF’s current and future operational needs.
The signing ceremony was attended by IMOD deputy director general and head of the Planning Department, Itamar Graff; head of the IDF Planning and Force Build-Up Directorate, Maj. Gen. Eyal Harel; IMOD deputy director general and head of the DPD, Zeev Landau; general manager of Elbit Systems Land, Yehuda (Udi) Vered; deputy director of the IMOD’s DDR&D, Dudi Ovadia; and other senior officials.
IMOD Director General Maj. Gen. (Res.) Eyal Zamir: “Today, we are laying the foundations for expanding manufacturing independence in two critical areas for the IDF’s operational sustainability – domestic production of heavy air munitions and establishing a national raw materials plant. Both agreements will ensure sovereign capability in producing bombs and munitions of all types. We initiated this historic move before the war but accelerated it during it. Under both agreements, initial capabilities will soon gradually expand until we achieve full independence in both areas. This is a central lesson from the war that will enable the IDF to continue operating powerfully in all theaters. I want to thank Elbit Systems and its employees for their crucial contribution in providing vital combat equipment to the IDF throughout the war.”
President & CEO of Elbit Systems, Bezhalel (Butzi) Machlis: “Elbit Systems is a partner of the IDF and the Israel Ministry of Defense in promoting the ‘Blue and White’ manufacturing policy and is committed to making a substantial contribution to strengthening the IDF’s munitions independence. We are proud of the privilege of being a significant pillar in defending the State of Israel and its citizens and grateful for the trust placed in us by the Israel Ministry of Defense and its Director General, Maj. Gen. (Res.) Eyal Zamir. Elbit’s employees and managers are committed to meeting the changing needs of the IDF and the defense establishment, and this deep, long-standing partnership contributes not only to security but also to economic development and employment, creating livelihoods for thousands of households in Israel.”
