Breaking Update
Israel Signs $42 Million Deal with Ashot Ashkelon to Upgrade Merkava Tanks
Israel's Ministry of Defense and Ashot Ashkelon have agreed to a $42 million deal to upgrade Merkava tank and Namer APC transmissions.
Jerusalem, 26 February, 2026 (TPS-IL) — Israel’s Ministry of Defense has signed a $42 million deal with Ashot Ashkelon to rehabilitate transmissions for Merkava tanks, the ministry announced Thursday. The agreement is part of a broader effort to strengthen Israel’s defense production base and support the Israel Defense Forces’ buildup.
Ashot Ashkelon, a leader in armored vehicle propulsion systems, will supply and refurbish transmissions for Merkava tanks and Namer APCs, adding to cumulative orders of roughly $82 million. The move aims to enhance operational readiness and ensure continuity of supply, while supporting Israel’s defense industry and national resilience, officials said.
