Israel MOD Signs Over $46 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 (IMOD), in collaboration with the IMOD’s Tank and APC Administration and the IDF’s Technological and Logistics Directorate, announced the signing of an additional significant agreement with Ashot Ashkelon.

The Director General of the IMOD, 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 current war. This transaction is one of several strategic moves by the IMOD to strengthen Israeli industries and ensure the IDF’s operational needs are consistently met in the present and future.

Under the terms of the agreement, Ashot Ashkelon will manufacture and supply critical components for the Merkava tanks and Namer APCs, including 1,500 horsepower transmissions, which will be delivered to the IDF, at a total cost of over $46 million (NIS 172 million).

Ashot Ashkelon, a factory specializing in producing complex drive systems, transmissions, and other unique components for armored vehicles, is a crucial supplier for the IDF’s armored vehicle programs, ensuring these critical defense systems’ operational readiness and longevity. During 2024, the IMOD made purchases from Ashot Ashkelon totaling over $88 million (approximately NIS 331 million).

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