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Ashot Ashkelon wins NIS 146m Defense Ministry order

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Ashot Ashkelon Industries Limited (level:Let’s say), controlled by FIMI Opportunity Funds, received an order worth NIS 146 million from the Israeli Ministry of Defense Procurement Department for the manufacture and supply of 1,200 hp transmissions. At the end of the third quarter of 2024, the value of Ashot Ashkelon’s backlog of orders amounted to 1.662 billion shekels, as the Ministry of Defense issued instructions to the company’s management to prepare for a significant increase in activities and supplies in the coming years.







The new order caused Ashot’s stock price to rise sharply on the Tel Aviv Stock Exchange. FIMI recognized the opportunity in Ashot at the right moment. Ashot Ashkelon, which was part of the government-owned Israel Military Industries (IMI), was sold to Elbit Systems as part of a privatization in 2018. In 2022, Elbit sold its 85% holding in Ashot to FIMI for approximately NIS 300 million. Now, two and a half years later, FIMI has a similar share (84%), with the market value of the shares today (according to their price on TASE) being more than NIS 1 billion.

500 employees in Israel and the United States

Ashot Ashkelon was founded in 1967 and has been traded on the TASE exchange since 1992. The company employs 500 people in Israel and the United States and manufactures jet engine shafts, transmissions, gears, gearboxes, landing gear components, and tungsten products for the aerospace and defense industries. Including armored vehicles and tanks such as Merkava and Tiger.

In 2011, Ashot expanded its operations in the US market, after acquiring Reliance Gear, located in Illinois. Reliance Gear specializes in producing advanced gear systems and components. In 2024, the company expanded its operations, capabilities and product portfolio through the acquisition of EDC, an Israeli multidisciplinary company providing development solutions, serial production and maintenance services to customers in Israel and around the world, operating in both the military and economic spheres. Civil sectors. The company provides its customers, led by the Ministry of Defense, with the advanced systems it has developed.

Published by Globes, Israel Business News – en.globes.co.il – on December 18, 2024.

© Copyright Globes Publisher Itonut (1983) Ltd., 2024.


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