The Defense Procurement Directorate (DPD) at the Israel Ministry of Defense (IMOD), in collaboration with the Tank and APC Administration, Planning Department, and the IDF’s Technological and Logistics Directorate, announced today (Wednesday) the signing of an additional significant agreement with Ashot Ashkelon.
Under the terms of the agreement, signed by the IMOD Director General, Maj. Gen. (Res.) Amir Baram, critical components, including 1,500 and 1,200 horsepower transmissions, suspensions, and powertrains for Merkava tanks and Namer APCs, will be manufactured and supplied at a total cost of approximately $26 million (NIS 100 million) and delivered to the IDF over the next 5 years.
This agreement marks another significant step in the comprehensive initiative to enhance the operational readiness of Israel’s advanced ground armored vehicles, including Merkava tanks, Namer and Eitan APCs, which serve as critical elements in ground maneuvers and have collectively traveled more than one million kilometers throughout the current war.
Ashot Ashkelon, a factory specializing in producing propulsion systems, transmissions, and other unique components for armored vehicles, is a crucial supplier for the IDF’s armored vehicle programs, ensuring their operational readiness and longevity.
IMOD Deputy Director General and Head of the DPD, Zeev Landau: “The deal signed with Ashot Ashkelon joins the ongoing effort led by the Ministry to fully support the IDF’s needs and force build-up during the ongoing war. We remain dedicated to advancing local procurement initiatives — strategic investments that both enhance our defense production capabilities and strengthen the national economy.”
Ashot Ashkelon CEO, Eliyahu (Eli) Damari: “Ashot Ashkelon is experiencing remarkable growth across all operational areas. Order volume from the IMOD has surged significantly during the past year due to the ongoing conflict. Many orders include spare parts and refurbishment of components not previously sourced from our company. We believe these substantial contracts deliver significant added value to our group while marking a crucial milestone in cementing Ashot Ashkelon’s position as a global technological leader in the defense sector.”
