Israel reached an agreement with Elbit Systems (ESLT.US) to supply heavy ammunition and build a new plant

The Zhitong Finance App learned that Israel's Ministry of Defense signed two major agreements with defense company Elbit Systems (ESLT.US) to supply thousands of heavy air munitions to the Israeli Air Force and will establish a new factory to produce raw materials. The transactions are estimated to be worth NIS 1 billion ($276 million).

Boosted by this news, Elbit Systems's US stocks rose more than 5% before the market on Tuesday.

The Israeli Ministry of Defense stated that these agreements “are critical to improving the combat endurance and force-building capabilities of the Israel Defense Forces,” adding that they will “strengthen the independence of the domestic manufacturing industry and reduce its dependence on imported raw materials.”