Israel MOD Signs Approx $42 Million Deal with Ashot Ashkelon for Rehabilitation of Merkava Tank Transmissions

The Defense Procurement Directorate (DPD) within the Israel Ministry of Defense (IMOD) announced today (Thursday) the signing of an agreement with Ashot Ashkelon for the rehabilitation and supply of transmissions for Merkava tanks.

This agreement joins a series of recently signed deals that will enable the expansion of Israel's defense production base and the IDF's force build-up, as part of the strategy led by Defense Minister Israel Katz and IMOD Director General, Maj. Gen. (Res.) Amir Baram.

Under the terms of the agreement, Ashot Ashkelon will rehabilitate transmissions for Merkava tanks at a total cost of approximately $42 million (over NIS 130 million).

Ashot Ashkelon specializes in the production of propulsion systems, transmissions, and other unique and complex components for armored vehicles, including the Merkava tank and Namer APC. This agreement forms part of a broader framework for the rehabilitation and supply of 1,500 and 1,200-horsepower transmissions for the Merkava tank and Namer APC. To date, cumulative orders placed under this project have reached approximately $82 million (approximately NIS 253 million).