Israel Ministry of Defense Signs Over $23 Million Deal with Ashot Ashkelon for Merkava Tank and Namer APC Components

The Directorate of Production and Procurement (DOPP) at the Israel Ministry of Defense, in collaboration with the IMoD’s Tank and APC Administration and the IDF's Technological and Logistics Directorate, announced today (Wednesday) the signing of a significant agreement with Ashot Ashkelon.

The IMoD’s Director General, Maj. Gen. (Res.) Eyal Zamir, signed the contract as part of the ministry’s broader initiative to enhance the capabilities of Israel’s armored vehicles, such as the Merkava tanks and Namer APCs, which have been demonstrating their effectiveness during the recent war. This transaction is one of several strategic moves by the IMoD to ensure the IDF’s operational needs are consistently met, both now and in the future.

Under the terms of the agreement, Ashot Ashkelon will manufacture and supply critical components for the Merkava tanks and Namer APCs, including 1,200 and 1,500 horsepower transmissions, suspensions, and drive systems, at a total cost of over $23 million (NIS 86.4 million). The deal also includes the procurement of spare parts and the restoration of advanced systems, which will be delivered to the IDF over the next two years.

Ashot Ashkelon, a factory specializing in the production of complex drive systems, transmissions, and other unique components for armored vehicles, is a crucial supplier for the IDF's armored vehicle programs, ensuring the operational readiness and longevity of these critical defense systems.