The Defense Procurement Directorate (DPD) within the Israel Ministry of Defense (IMOD) announced Thursday morning the signing of an agreement with Ashot Ashkelon for the rehabilitation and supply of transmissions for Merkava tanks.
This agreement joins a series of recently-signed deals that will enable the expansion of Israel's defense production base and the IDF's force build-up, as part of the strategy led by Defense Minister Israel Katz and IMOD Director General Maj. Gen. (Res.) Amir Baram.
Under the terms of the agreement, Ashot Ashkelon will rehabilitate transmissions for Merkava tanks at a total cost of approximately $42 million (over NIS 130 million).
Ashot Ashkelon specializes in the production of propulsion systems, transmissions, and other unique and complex components for armored vehicles, including the Merkava tank and Namer APC. This agreement forms part of a broader framework for the rehabilitation and supply of 1,500 and 1,200-horsepower transmissions for the Merkava tank and Namer APC. To date, cumulative orders placed under this project have reached approximately $82 million (approximately NIS 253 million).
IMOD Deputy Director General and Head of the DPD Zeev Landau commented: "This agreement represents another significant step in the comprehensive effort to enhance the operational readiness of the IDF's armored vehicle fleet, which has yielded remarkable results throughout the war. Expanding Israel's defense production base - as a key lesson of the war - ensures availability and continuity of supply, while advancing force build-up processes both in the context of the current campaign and in response to future security challenges. These efforts are made possible through a true partnership with the defense industries, which serve as a force multiplier and contribute both to the Israeli economy and to national resilience."
Ashot Ashkelon CEO, Eliyahu (Eli) Damari added: "Ashot Ashkelon is experiencing remarkable growth across all areas of its operations. The pace of orders received from the IMOD reflects the central role Ashot Ashkelon plays in meeting the defense establishment's operational needs during this challenging period. Alongside the production of new systems, we are seeing significant growth in demand for spare parts and the rehabilitation of existing systems - a domain in which Ashot Ashkelon brings years of accumulated expertise and experience. The volume of orders and backlog represents a significant milestone in strengthening the company's position as a global technological leader in the defense sector and reflects the continued confidence in the company and its ability to deliver advanced, high-quality solutions over time. In ongoing dialogue with the Ministry, Ashot Ashkelon is preparing for a significant expansion of its operational capacity in the years ahead."