Sderot-Based Company Secures $16.3 Million Artillery Fuze Deal

Arit Industries, a lesser-known Israeli defense manufacturer based in Sderot, announced on Wednesday that its subsidiary, Reshef Technologies, has received a significant order from a major North American defense company. The deal, valued at $16.3 million (approximately 50 million shekels), is for the supply of artillery fuzes. The products are slated for delivery in the second quarter of 2027, pending export approval from the Ministry of Defense.

Arit Industries is a publicly traded company on the Tel Aviv Stock Exchange, with businessman Zvi Levi holding approximately 39% of its shares. Levi acquired control of the company about two decades ago. Reshef Technologies, in which Arit holds about 77.6%, is the primary operational arm. The Sderot factory, part of Reshef, also supplies fuzes to the Israel Defense Forces (IDF).

Fuzes are critical components that determine the timing and method of munition activation. Reshef specializes in electronic fuzes for artillery shells, mortar bombs, and tank ammunition, and is also developing products for loitering munitions and unmanned aerial vehicles. This means the company supplies essential components rather than entire munitions.

This new order follows a previous significant deal in June 2024, where the Ministry of Defense ordered fuzes worth 210 million shekels from Arit's Sderot plant. While Arit did not disclose the name of the ordering company or its country, it confirmed the client is from North America. According to CEO Haim Shefler, this client had already placed orders totaling approximately $83 million in 2024, with deliveries in 2025. The current order stems from a subsequent tender win by the client.

Reshef Technologies' international reach extends beyond North America. The company has a multi-year agreement with India's defense giant BEL and is actively expanding its presence in Europe. In the United States, Arit plans to establish a fuze manufacturing plant in Georgia, having purchased land for this purpose, despite an ongoing legal dispute over a portion of the property which the company believes will not impede its plans.

Despite this international expansion and a current order backlog of approximately 540 million shekels (excluding a conditional Indian order worth about $45 million), Arit's stock has seen a significant decline this year, partly due to slowing revenues. The impact of this new North American order on the company's overall recovery remains to be seen.