Israel Military Industries Ltd. (IMI Systems) today announced that it would sell NIS 150 million worth of small caliber ammunition to the US civilian market. The agreement involves IMI's Yitzhak plant, where IMI manufactures light ammunition, and three major distributors of premium ammunition in the US market. IMI said that the types of ammunition involved, which were used by armies and were relatively expensive, were designated for sportsmen, firing ranges, and hunters.
Commenting on the small caliber ammunitions deals in the US, IMI VP and small caliber ammunition division managing director Israel Shmilovitz said, "Our joint work with the special forces and various IDF departments gives us a significant advantage in international competition and in competition in civilian markets." He added that IMI's ties with the light ammunition distributors in the US had begun in recent years, with an emphasis on prestigious types of ammunition specially developed for the civilian market, in addition to production of classic ammunition designed for fighting and training by military forces: production by the division is used by the IDF, and the Yitzhak plant is considered by the Ministry of Defense to be the exclusive supplier for small caliber ammunition.
The backlog of deals in the US for small caliber ammunition is a further extension of IMI's business in the US market, in which the company has been very active, mainly during the past year. IMI's most prominent deal in the US market was published a few weeks ago, when the US army selected IMI's Iron Fist active defense system for protection of tanks, armored personnel carriers (APCs), and light vehicles again anti-tank missiles. IMI will sell the lightweight version of the system; proceeds from the deal are projected to amount to hundreds of millions of dollars. This plan also involves US companies, which will adapt the tank and APC systems to IMI's defense system.
Even before the Iron Fist deal in the US, IMI reported that it would sell $6 million worth of decoy flares for aircraft for US army special forces. In another deal, the company will develop a precision mortar shell for the US Marine Corps in cooperation with Raytheon; the deal is worth an estimated $100 million. IMI said today that the light ammunitions deal in the US was in line with the company's strategic plan, in which a third of its products are to be designated for civilian markets around the world.
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2016
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