Israel Shipyards Signs 80 Million Euro Deal with Foreign Client

Israel Shipyards has signed a contract worth approximately 80 million euros to supply vessels and services to an undisclosed foreign government client. The agreement was concluded as part of an arrangement between the Israel Ministry of Defense and the foreign client, with delivery and completion of work expected to take about 30 months. Under the deal, Israel Shipyards will provide a new vessel equipped with mechanical infrastructure and systems for additional installations, alongside logistics support for an existing vessel in the client's fleet that was previously built by the company. The agreement includes an option for installing mechanical infrastructure and systems on the existing vessel for an additional 13 million euros.

The controlling shareholders of Israel Shipyards are Shlomi Fogel, Sami Katsav, the Shmeltzer family, and the Gold Bond Group, each holding 20% of the shares. Payment terms include an initial advance of 24% of the consideration, with the remainder paid according to agreed milestones. The company has committed to a 12-month warranty from delivery and a 10% performance guarantee. The agreement is subject to export licenses and customary terms including confidentiality and intellectual property protection.

This signing follows the company's July disclosure regarding negotiations for the deal. The transaction adds to Israel Shipyards' military vessel operations, notably the Reshef project, which involves building five new Sa'ar warships for the Israeli Navy. Approved by the Ministry of Defense in December 2024 with a budget of approximately 2.4 billion shekels, the project aims to strengthen domestic defense production independence. In its H1 2026 reports, the company noted that the Reshef project has advanced significantly, with 2027-2028 expected to be peak production years.