Israel Ministry of Defense Signs Merkava Transmission Deal with Esut Ashkelon

The Israel Ministry of Defense has signed a contract worth more than NIS 130 million ($41.6 million) with Esut Ashkelon to rehabilitate dozens of transmissions for Merkava tanks, the Defense Procurement Directorate announced on Thursday.

The agreement includes the restoration and supply of transmissions for Merkava tanks. The deal forms part of a series of recent contracts aimed at expanding the Israel Defense Forces’ defense production base and force-building capacity under a strategy led by Defense Minister Israel Katz and Director General Maj. Gen. (res.) Amir Baram.

Under the agreement, Ashkelon Works will refurbish 1,500 and 1,200 horsepower transmissions used in tanks and light trucks. The ministry said that cumulative orders for the broader rehabilitation and supply project have reached approximately NIS 253 million ($81 million) to date.

Ashkelon Works, which operates in the southern city of Ashkelon, manufactures drive systems, transmissions and complex assemblies for armored platforms, including the Merkava and the Namer. The factory employs about 500 workers, around 80% of whom are residents of Ashkelon, the Gaza Envelope and nearby southern communities.

Ashkelon CEO Eli Damari said demand has risen not only for new systems but also for spare parts and the rehabilitation of existing systems.

Recently, Rolls-Royce Solutions America Inc. won a $73.5 million contract to supply transmission-related kits and technical services for Israeli Merkava tanks under the U.S. Foreign Military Sales (FMS) program.