IAI enters $1.9b G2G agreement with Ministry of Defense

Israel Aerospace Industries (IAI) announced this morning that it has signed an intergovernmental agreement with the Ministry of Defense to be the prime contractor for the manufacture and supply of defense systems to third parties. The total value of the project is expected to be approximately $1.9 billion. Payments to IAI for the project will be made by a third party, through the Ministry of Defense, and the project is scheduled to be completed in 2031.

In another development, the Economy Ministry’s Investment Authority this week approved an investment of more than NIS 40 million in the establishment of an Israel Aerospace Industries (IAI) factory in Ofakim in the Negev. The project will receive a government grant of about NIS 8 million. The establishment of the factory, initiated by IAI Chairman Amir Peretz, is expected to create hundreds of new jobs, including dozens of technological positions, for Ofakim.

This article was published in Globes, Israeli Business News – en.globes.co.il – on August 8, 2024.

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