Israeli defense company Elbit Systems will build a factory to produce artillery shells for an unnamed country.

The company’s press service made the announcement on its official website.

The contract will be performed over a period of two years.

The deal between the Israeli company and the international customer is worth $135 million.

Elbit Systems emphasizes that this contract will leverage the significant technical and operational knowledge that company has accumulated, as well as decades of ammunition production experience.

It is noted that the experience of the Israeli company covers the entire cycle – from design to production, as well as maintenance and after-sales support.

“There is growing demand from governments around the world who are interested in enhancing their sovereign ammunition production capabilities. Supporting our customers and sharing our expertise with international partners is a key element of our multi domestic global growth strategy in addition to our ongoing investments to expand our own manufacturing capabilities,” Yehuda (Udi) Vered, General Manager of Elbit Systems Land said.

As previously reported, in October of this year, the Bundeswehr chose the Israeli EuroPULS multiple launch rocket systems.

The new system will replace the five MARS 2 tracked MLRS transferred to Ukraine.

These rocket systems will be supplied by the Israeli company Elbit Systems.

The procurement of PULS will take place in cooperation with the Netherlands, which will reduce acquisition costs and improve logistics capabilities to support these systems. Most components and spare parts for the system will be manufactured by European companies.

This order will be part of the overall collaboration program between Krauss-Maffei Wegmann and Elbit Systems, which the companies signed in December 2022 as part of the EuroPULS presentation.