Israel’s Elbit Systems has secured a $135 million contract to build an artillery ammunition factory for an unnamed customer.
According to the company, the agreement requires its technical knowledge and ammunition production experience to establish the factory, which the Haifa-based organization will construct and operate.
The deal, to be performed over a two-year period, includes full product life cycle support, including maintenance and after-sales services.
In a statement, Elbit Systems Land General Manager Yehuda Vered highlighted the contract award’s significance by pointing to governments’ increasing need to bolster their “sovereign ammunition production capabilities.”
The company is fully capable of meeting international customers’ requirements and sharing its expertise, particularly in the ammunition production space, he added.
The Israeli firm boasts decades of manufacturing experience, operating ammunition factories and production lines in several sites around the world.
Its latest contract win comes as demand has increased for ammunition supplies, specifically the 155 mm variant, following Russia’s invasion of Ukraine in 2022, The Jerusalem Post reported.