155MM Artillery shell storage facility in Israel (IDF)

Amid the ongoing tensions on Israel's northern border with Lebanon and the recent US decision to withdraw ammunition from their warehouses in Israel for Ukraine's benefit, Israel's Ministry of Defense, in collaboration with Elbit Systems, has signed a significant agreement. The deal aims to equip the Israel Defense Forces (IDF) Artillery Corps with 155 mm artillery shells and is valued at approximately $60 million, involving tens of thousands of shells.

Colonel (Ret.) Eyal Zamir, the Director General of the Ministry of Defense, approved the extensive agreement, which comes at a crucial time for Israel's defense preparedness. The United States' decision to withdraw ammunition from the Middle East despite Israel's previous agreement to allow its use has heightened the need for Israel to enhance its indigenous production capabilities.

The production of the artillery shells will take place at Elbit Systems' factories located in Haifa and Ramat Hasharon, with delivery scheduled for completion by the end of 2024. Ze'ev Landau, Vice President, and Chief Executive Officer at the Ministry of Defense, emphasized the importance of the ammunition production line and the Ministry's long-term investment in this critical aspect of national defense. He expressed confidence that the agreement with Elbit Systems would strengthen the IDF's readiness for various combat scenarios and boost the production of domestically manufactured munitions, benefiting local industries, especially in peripheral regions.

Udi Vered, CEO of the Land Division at Elbit Systems, expressed pride in serving as a leading supplier to the Ministry of Defense and the IDF. He highlighted the company's commitment to supporting the nation's current operational needs and its efforts to expand and upgrade infrastructure to accelerate the production of high-quality solutions. Vered also reiterated Elbit Systems' dedication to its strategic goals, which include fostering the local economy and creating employment opportunities across Israel, from Kiryat Shmona in Galilee to Ramat Bekah in the Negev.

This procurement decision comes in the wake of Prime Minister Netanyahu's acceptance of the recommendations and proposed actions put forth by the IDF and the security establishment. Following a high-level discussion, Netanyahu delivered a resolute message, asserting that Israel remains unfazed by Hezbollah leader Nasrallah's threats. He affirmed that Israel stands united and prepared to face any challenge, emphasizing the readiness to protect its citizens and uphold national security.

As the security situation remains complex in the region, Israel's continued efforts to strengthen its military capabilities, such as acquiring advanced artillery shells, underscore its commitment to safeguarding its borders and defending against potential threats effectively.

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