Israel Inks $26.6M Deal for Merkava Tank, Tiger APC Spare Parts

Israel’s Ministry of Defense has signed a new NIS 100 million (approximately $26.6 million) contract with Esut Ashkelon to manufacture and supply critical spare parts for the Israel Defense Forces’ Merkava tanks and Tiger armored personnel carriers (APCs).

The agreement was signed by Maj. Gen. (Res.) Amir Baram, Director General of the Ministry of Defense, in collaboration with the Defense Procurement Directorate (DPR), the Merkava and Armored Vehicles Directorate (MAVD), and the IDF Technology and Logistics Division.

Under the five-year contract, Esut Ashkelon will supply vital components including 1500 and 1200 horsepower transmissions, suspension systems, and drivetrains. These parts are essential for maintaining the operational readiness of Israel’s armored fleet, which includes Merkava tanks, Tiger APCs, and the Eitan wheeled APCs.

“The armored vehicles, especially Merkava and Tiger, play a key role in our land operations and maneuvering capability,” said a defense official involved in the agreement. “During the Iron Swords War, these vehicles collectively traveled over one million kilometers, underscoring the importance of robust logistical support.”

The Ashkelon Works factory, operated by Esut Ashkelon, specializes in complex drive systems and assemblies for armored vehicles. The facility employs around 500 workers, with approximately 80% residing in Ashkelon, the Gaza Envelope, and nearby southern communities.