Israel Shipyards to Supply Naval Vessels and Services Abroad for €80 Million
Translated & summarized from Calcalist by baba
Israel Shipyards secured an €80 million contract to supply naval vessels and services to a foreign government, facilitated by the Israeli Ministry of Defense. The deal, expected to take 30 months, includes a new vessel and support for an existing one, with an option for further upgrades. This agreement complements the company's ongoing "Reshef" project, building five naval vessels for the Israeli Navy.
The story in 6 lines · by baba
- Israel Shipyards signed an €80 million deal for naval vessels and services with a foreign government.
- The contract, facilitated by the Ministry of Defense, will be completed within 30 months.
- The agreement includes a new vessel and support for an existing one, with an optional upgrade.
- Payment terms include a 24% advance and milestone-based payments.
- The deal is subject to export permits and standard commercial clauses.
- Israel Shipyards is also building five naval vessels for the Israeli Navy under the "Reshef" project.
Israel Shipyards has signed a deal worth approximately €80 million to supply naval vessels and services to an undisclosed foreign government client. The agreement was facilitated through the Israeli Ministry of Defense and is expected to be completed within 30 months. The contract includes the delivery of a new vessel equipped with systems and mechanical infrastructure, as well as integration services and logistical support for an existing vessel in the client's navy, which Israel Shipyards previously built.
An optional extension to the deal allows for the installation of mechanical infrastructure and systems on the existing vessel for an additional €13 million. Payment terms involve a 24% advance, with the remainder paid according to agreed-upon milestones. Israel Shipyards will provide a 12-month warranty for the new vessel and a 10% performance bond. The agreement is contingent on export permits and includes standard confidentiality and intellectual property protection clauses.
This contract follows earlier negotiations reported in July and aligns with Israel Shipyards' ongoing work in military naval vessels. Notably, the company is currently constructing five new Sa'ar-class fast attack craft for the Israeli Navy under the "Reshef" project, a €2.4 billion initiative approved in December 2024 to bolster Israel's defense manufacturing independence. The company's financial reports indicate the "Reshef" project is progressing significantly, with peak contributions to revenue expected between 2027 and 2028.
