Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or "the Company") announced today that it was awarded an approximately $125 million (NIS 460 million) contract from the Israeli Ministry of Defense ("IMOD") to supply fully automatic self-propelled howitzer gun systems to the Israeli Defense Forces ("IDF"). The contract, which also includes the supply of training simulators, will be performed over a 12-year period.
The IMOD and Elbit Systems intend that further part of the automatic howitzer gun systems program, under an additional contract to the Company in an amount that is expected to be material, will be performed by various U.S. companies including Elbit Systems of America, LLC, subject to completion of the receipt of applicable governmental approvals for the U.S. content.
The new automatic howitzer gun system is based on know-how and experience the Company accumulated over decades of supplying artillery systems to numerous armed forces. The new howitzer gun system is capable of automatic loading and laying. According to the applicable mission, the new gun system automatically selects the required projectile, propellant and fuze, loads them and lays the gun to optimally engage targets. The new howitzer gun system will enhance the effectiveness of the artillery formation of the IDF while reducing the number soldiers in each platform and significantly reduce life-cycle costs.
Bezhalel (Butzi) Machlis, President and CEO of Elbit Systems, commented: "We are proud to take part in building the future artillery formation of the IDF. This contract award is a vote of confidence in Israeli defense technology and an acknowledgment of the international leadership of Elbit Systems in the area of artillery systems. We believe that effective integration of precision, rapidity and autonomy together with a built-in connectivity to the communication and command & control systems will become the required standard. We are witnessing a growing need for advanced and reliable artillery systems that enable powerful and efficient operation in all combat configurations."
Source: Elbit Systems Ltd.
Date: Mar 29, 2019