ARI Arms, an Israeli firearms manufacturer based in the Hefer Valley industrial zone, has secured the largest small arms procurement contract ever issued by the Defense Ministry.
The deal, valued at up to NIS 100 million ($26 million), involves the supply of thousands of OR-4 assault rifles for the IDF’s infantry units.
The OR-4, part of the AR-15 rifle family and a derivative of the M-16 and M-4 assault rifles, was selected through a tender process launched by the Defense Ministry’s Procurement Administration in February. The purchase aligns with IDF operational needs arising from the ongoing fighting in Gaza.
Initially, the competition included major players such as IWI (Israel Weapon Industries), Emtan from Karmiel and Silver Shadow from Or Yehuda. ARI Arms joined the bidding later, submitting a proposal that ultimately won the tender.
Under the agreement, ARI Arms will deliver approximately 10,000 OR-4 rifles in the coming months for around NIS 50 million, with an option to double the order to 20,000 rifles for a total value of NIS 100 million.
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ARI Arms is co-owned by Oren Ankonina and businessman Avichai Stolero, the latter operating through AS Holdings. Stolero, in partnership with state-owned Rafael Advanced Defense Systems, previously acquired Aeronautics, a drone manufacturer, in a 2019 deal still under regulatory review.
The company has a history of providing services to tech firms, defense industries and aviation companies. In recent years, it has invested heavily in developing advanced AR-15 derivatives, leading to the creation of the OR-4 rifle.
To date, ARI Arms has sold tens of thousands of rifles annually to the U.S. market and has collaborated with global defense entities, including Azerbaijan’s defense ministry.
The Defense Ministry confirmed ARI Arms' selection, stating that the company met the high standards required in the tender process. Ministry officials indicated plans to issue another tender to further expand the IDF’s inventory of similar rifles, citing an urgent operational need for additional assault weapons.
The new rifles are part of a broader effort to unify infantry units' weaponry, phasing out IWI-made Tavor rifles currently in use. This policy is consistent with former Defense Ministry director-general Eyal Zamir’s strategy to strengthen local production of military equipment and reduce reliance on imported arms.