Israel's Defense Ministry has signed an agreement with IMI Systems CEO Avi Felder to purchase 1.75 billion NIS of ammunition between the years 2019-2025.
During these seven years, IMI Systems will provide the IDF with various types of ammunition for infantry units, as well as for the IDF's other ground forces.
250 million NIS per year will be spent on ammunition, allowing the IDF to replenish their stocks, which were severely depleted during Operation Protective Edge in 2014.
The agreement will also allow the IDF to continue its training exercises for the next ten years, and provide the IDF with the financial security required to move the army factories from Ramat Hasharon to Ramat Beka in the Negev.
IMI Systems - formerly Israel Military Industries - will be required to move its main production sites to Ramat Beka by the year 2022. The financial agreement covers the years 2019-2025 in order to ensure IMI Systems' move south provides maximum financial benefits.
"During our negotiations with IMI Systems, we worked to ensure maximum benefits for both the IDF and the Israeli economy," said Defense Ministry Head of Acquisition Shmuel Tzuker. "On the one hand, this agreement ensures an adequate supply of weapons to he IDF. At the same time, this agreement will provide jobs for thousands of workers and the move to Ramat Beka will boost the Negev's economy and provide land for thousands of housing units in the center of the country."