ELBIT SYSTEMS TO EXPAND DOMESTIC PRODUCTION LINES FOLLOWING $183 MILLION ISRAELI AIR FORCE ORDER
HAIFA, Israel -- The Israeli Ministry of Defense has finalized a multi-year procurement agreement with Elbit Systems valued at approximately $183 million (NIS 570 million) to supply the Israel Air Force with a range of aerial munitions.
The contract, announced Tuesday by the Ministry’s Defense Procurement Directorate, establishes a long-term framework for the production and delivery of air-to-ground weapons. According to ministry officials, the agreement is designed to replenish depleted stockpiles following two years of intensive multi-front operations and to ensure a steady supply of precision and general-purpose ordnance for the coming decade.
A primary condition of the deal is the expansion of domestic manufacturing infrastructure. Under the terms of the agreement, Elbit Systems will increase its local production capacity for munitions that were previously sourced primarily from foreign suppliers. This includes the development of independent domestic lines for heavy ordnance such as the MK-84, a 900-kilogram general-purpose bomb that serves as the foundation for various precision-guided strike systems.
The procurement follows previous orders placed in August 2024, which totaled approximately NIS 900 million and included advanced long-range missiles. Ministry of Defense Director General Amir Baram stated that the move is part of a broader series of force-building agreements across land and air domains intended to bolster industrial resilience.
The new production facilities are expected to stabilize supply chains and reduce the lead time for weapon deliveries during high-intensity conflicts. Elbit Systems has not disclosed the specific delivery schedule, though the contract is designated as a multi-year arrangement.
This development represents a strategic shift in Israel’s defense procurement policy toward industrial self-reliance. By mandating the domestic production of heavy munitions like the MK-84, Israel is actively working to mitigate the risks of foreign arms embargoes or delivery delays that have previously impacted operational readiness. The move not only secures the military's supply chain for the next decade but also strengthens the domestic economy by concentrating high-tech manufacturing and defense expertise within the country's borders.