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

The Israeli Ministry of Defense and defense company Elbit Systems (ESLT.US) have signed two major agreements to provide thousands of heavy aerial munitions to the Israeli Air Force and establish a new factory for producing raw materials. These deals are estimated to be worth 1 billion new shekels ($276 million). Boosted by this news, Elbit Systems' stock in the US rose by over 5% in pre-market trading on Tuesday. The Israeli Ministry of Defense stated that these agreements are "vital for enhancing the operational resilience of the Israeli armed forces and their capabilities for force building", and added that it will "strengthen the independence of domestic manufacturing and reduce dependence on imported raw materials".