Israel Shipyards signs €80 million deal to supply undisclosed vessel to foreign government
The agreement covers a new vessel and support services for a previously delivered ship, with an additional €13 million option. The deal was signed under an arrangement between Israel's Ministry of Defense and the unnamed foreign government.
Israel Shipyards has signed an agreement worth approximately €80 million to supply vessels and services to an undisclosed foreign government client. The deal was concluded under an arrangement between Israel’s Ministry of Defense and the foreign client. Delivery of the vessel and completion of the associated work are expected to take approximately 30 months.
Under the agreement, Israel Shipyards will supply a new vessel equipped with specified systems and the mechanical infrastructure required for the installation of additional systems. The company will also integrate systems and provide logistical support for an existing vessel in the client’s fleet that Israel Shipyards previously built and delivered. The agreement includes an option to install additional mechanical infrastructure and systems on the existing vessel for approximately €13 million.
Payment terms include an advance payment equal to 24% of the total consideration, with the remainder payable according to milestones set out in the agreement. Israel Shipyards has committed to providing a 12-month warranty on the new vessel following delivery and to posting a warranty bond equal to 10% of the contract value.
The agreement is subject to several conditions, including the receipt of export licenses and customary contractual provisions covering matters such as confidentiality and intellectual property protection. The signing follows the company’s announcement in July that negotiations over the deal were underway.
The transaction adds to Israel Shipyards’ military vessel business, which includes the Reshef project to build five new Sa’ar-class ships for the Israeli Navy. Valued at approximately NIS 2.4 billion, the project was approved by the Ministry of Defense in December 2024 and is intended to strengthen Israel’s domestic defense manufacturing capabilities.
In its financial results for the first half of 2026, Israel Shipyards said the Reshef project had progressed to a more advanced stage, significantly increasing its contribution to the shipyard division’s revenue. The company expects 2027 and 2028 to be the peak years for work on the project.
