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Defense Ministry to Acquire Ammunition from IMI Systems

Jan 1, 2017

111117-N-PB383-082 PACIFIC OCEAN (Nov. 17, 2011) Ammunition for a .50-caliber live-fire exercise is on the flight deck aboard the amphibious transport dock ship USS New Orleans (LPD 18). New Orleans and embarked Marines assigned to the 11th Marine Expeditionary Unit (11th MEU) are on deployment as part of the Makin Island Amphibious Ready Group. (U.S. Navy photo by Mass Communication Specialist 3rd Class Dominique Pineiro/Released)

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The Procurement Directorate for land purchasing in the Israeli Defense Ministry will acquire ammunition from IMI Systems. According to the agreement, supplied to IMI Systems by the Defense Ministry’s Land Procurement and Manufacture Administration, the Ministry will purchase a NIS 1.75 billion worth ammunition.

The agreement with IMI Systems is for a period of seven years, 2019-2025, during which the company will supply the IDF with various types of ammunition for its ground forces and the different infantry units.

The procurement, with the average worth of NIS 250 million per year, will enable the IDF to complement a restocking plan which has started following the Protective Edge Operation, and will support the IDF’s training program for the next ten years, as part of the perennial Gideon Program.

The agreement is also expected to ensure economic security to the transferring of the military industry compound from Ramat Hasharon to Ramat Beka in the Negev.

According to a government decision, IMI is obliged to transfer its plants to Ramat Beka until 2022. The Procurement Directorate at the Defense Ministry insisted that the perennial agreement will last until 2025, three years after the expected transition to the South, in a way that would enhance the economic benefit from the move southwards.

According to Vice President and Head of the Procurement Administration at the Ministry of Defense, Shmuel Zuker: “During the negotiations we insisted that the agreement with IMI Systems would yield a profit to the defense system as well as to the Israeli economy. On the one hand, the agreement will guarantee an inventory of ammunitions to the IDF’s infantry units for a decade, and on the other hand it will supply employment for thousands of workers, will support the move from Ramat Hasharon to the Negev, and will enable the building of thousands of flats in the center of the country”.