Israeli Weapons Company Contract Overview
- Israeli company Elbit Systems recently secured a substantial defense contract valued at $917 million.
- Three years ago, concerns about data security led to the removal of the company’s technology from Australian Army equipment.
- The newly awarded contract is set to span a five-year period.
Elbit Systems, the Israeli weapons company, will be providing cutting-edge protection, combat capabilities, and sensor technology for the new Korean-designed Infantry Fighting Vehicles (IFVs) currently under construction in the Victorian electorate overseen by Defense Minister Richard Marles.
Last July, Hanwha, a South Korean firm, won the LAND 400 Phase 3 Project worth around $10 billion to supply 129 Redback IFVs to the Australian Army, surpassing a bid from German company Rheinmetall.
Initially, Hanwha had collaborated with Canberra-based defense company Electro Optic Systems (EOS) to develop a sophisticated turret for its IFVs. However, this partnership was dissolved in favor of a new joint venture with Elbit Systems in June 2022.
Elbit Systems, headquartered in Haifa, announced that it had secured a contract of approximately $600 million (equivalent to $917 million in US dollars) to provide systems for the Australian LAND 400 Phase 3 Project in collaboration with Hanwha Defence Australia.
The project’s objective is to equip the Redback Infantry Fighting Vehicles (IFV) for the Australian Army with state-of-the-art protection, combat capabilities, and sensor suites over the course of five years.
Elbit Systems President and CEO Bezhalel (Butzi) Machlis expressed the company’s dedication to providing cutting-edge defense technologies to the Australian Army in a recent statement. He emphasized the milestone of securing a contract with the Israeli weapons company and reaffirmed their commitment to delivering advanced, mission-critical solutions. Mr. Machlis highlighted the importance of safeguarding troops on the modern battlefield through innovative technologies. While the specific location for producing Elbit System’s advanced turret systems remains undisclosed, sources within the LAND 400 Phase 3 program indicate a strong intention to carry out most of the work in Australia.
Australia’s Delay in Approving Israeli Weapons Company Contract
The Albanese government is currently delaying approvals for exporting Australian-made military equipment to Israel due to mounting worries about the increasing civilian casualties in Gaza.
Concerns Over Israeli Weapons Company Contract
In 2021, the ABC uncovered that army headquarters had issued a directive to halt the use of another Elbit product, the BMS Command and Control (BMS-C2). Instead, they opted for an interim Danish system that is still in operation today.
During that period, Elbit Systems vehemently refuted security speculations surrounding its BMS product. Despite military sources expressing worries about potential data breaches, a directive was put in place to prohibit its configuration or access on specific Army systems.
A spokesperson from the Defence Department emphasized the close collaboration with industry partners to ensure the fulfillment of all contractual obligations, including security prerequisites.
Recently, the ABC shed light on unease within the defense industry regarding the Australian government’s hesitance to authorize exports of domestically produced military equipment to Israel amid the Gaza conflict.
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