General information
Israel Shipyards is Israel’s major naval manufacturer. It was founded as a State-owned enterprise in 1959, privatized in 1995 and owned today by the investors Samy Katsav (SK Group), Shlomo Shmeltzer (Shlomo Group), and Shlomi Fogel (Ampa Group). Its main products include missile boats, offshore patrol vessels (OPV), fast patrol crafts (FPC), merchant vessels and cranes.
Israel Shipyards first ship was manufactured in 1962. The same year the company merged with HaYama – a shipyard jointly owned by Solel Boneh and ZIM, which operated before the establishment of the State of Israel.[1]Merger agreement between “HaYama” and “Israel Shipyards” signed, LaMerhav, 17.9.1962 [Hebrew]
During the 1960s Israel Shipyards produced tugboats, barges, cargo ships and landing crafts. After the 1967 war and the occupation of the Sinai Peninsula, Israel’s coastline expanded, and it decided to acquire more missile boats. However, the French embargo following the war led Israel Shipyards to construct its first class of missile boats: Reshef/Sa’ar 4.[2]Efraim Inbar, “The Israeli Navy” Naval War College Review 43, no. 1 (1990): 100-112, 105-106
As for 2019, Israel Shipyards has manufactured since its establishment at least 36 missile boats, 33 FPCs, 8 OPVs, and 48 watercrafts for non-military use.[3]Udi Etzion, “Israel Shipyards celebrates 60 and launches a new offshore patrol vessel manufactured for Honduras”, Calcalist, 1.7.2019 [Hebrew]
Israel Shipyards started exporting in the late 1960s as it struggled to be profitable.[4]Baruch Bar, “The Calculations of the Israeli Shipyard”, Haaretz, 16.1.1961 [Hebrew] Since its privatization in 1995, the company focuses mainly on export, and as for 2023 only 15% of its products are commissioned by the Israeli Navy.[5]Israel Shipyards: Blue and White marine power, ynet, 25.5.2023 [Hebrew]
During the 1970s and 1980s Israel sold Sa’ar-class missile boats armed with Gabriel missiles to both Apartheid South Africa[6]Thean Potgieter, “The secret South African project team: building strike craft in Israel, 1975-79” Scientia Militaria: South African Journal of Military Studies 32, no. 2 (2004) and Chile under Pinochet’s dictatorship.[7]Missile Craft Chipana, History of the Navy Current Ships C, Armada de Chile
Customers include South Africa, Greece, Mexico, Sri Lanka, Nigeria, Argentina, Azerbaijan, Cyprus, Romania.
Central products
Shaldag-class fast patrol craft (FPC)
The Shaldag-class FPC was developed by Israeli Shipyards for the Israeli Navy and commissioned in 1989, reflecting the navy’s growing preoccupation with “antiterrorist” operations, especially against infiltration from the Lebanese coast.
The Shaldag has since been exported to several other navies, including: Nigeria, Romania, Argentina, Philippines,[8]Israel Shipyards: Blue and White marine power, ynet, 25.5.2023 Azerbaijan, Equatorial Guinea, Senegal, Cyprus and Sri Lanka.[9]SHALDAG-Class Fast Patrol Boat, Naval Technology, 14.8.2020
Israel Shipyards’ first class of fast attack craft (FAC) – the Reshef/Sa’ar 4 – was manufactured as part of the Israeli policy to increase domestic production due to the French embargo following the 1967 war.[10]Efraim Inbar, “The Israeli Navy” Naval War College Review 43, no. 1 (1990): 100-112, 106 The design was based on that of missile boats Israel had previously acquired from the French shipyard Constructions Mécaniques de Normandie located at Cherbourg (Sa’ar 1, Sa’ar 2, and Sa’ar 3 classes). The Sa’ar 4, armed with Gabriel missiles where first commissioned to the Israeli navy in 1973.[11]David Mosheiov, “An improved missile boat manufactured by Israeli Shipyards joined The Navy” Davar, 5.2.1973 [Hebrew]
To combine air support, the Israeli navy commissioned in 1980 the Sa’ar 4.5-class missile boat. While the Sa’ar 4.5-class Hetz subclass is an ordinary missile boat, the Aliya subclass is helicopter-equipped.[12]Efraim Inbar, “The Israeli Navy” Naval War College Review 43, no. 1 (1990): 100-112, 109
The Sa’ar 4.5-class based OPV was used to secure the Greek coast during the 2004 World Olympics.[13]Israel Shipyards website
In 2010 Israel Shipyards started developing the Sa’ar 72 Mini-Corvette,[14]“The Navy’s new warship has been unveiled”, mako, 20.5.2013 [Hebrew] officially introduced at IMDEX Asia 2013. The Sa’ar 72-class fits both the categories of Corvette and Offshore Patrol Vessel (OPV) carrying different weapons (IAI’s Barak 8 type missiles, various anti-ship missiles and a naval gun) and including a helipad, a hangar for storing a helicopter and UAVs, an IAI Elta EL/M-2258 ALPHA naval radar, as well as equipment for rescue operations.[15]Tamir Eshel, “Israel Shipyards Introduces the SAAR 72 Mini-Corvette Design”, Defense Update, 16.5.2013
Sa’ar-class missile boats have been exported to several other navies, including: Chile, South Africa, Greece, Sri Lanka and Mexico.[16]Sipri Arms Trade database
Sa’ar-class 5 and 6 are manufactured in Germany according to Israeli design (Northrop Grumman, 1993 and ThyssenKrupp Marine Systems, 2019 accordingly).
Offshore Patrol Vessels (OPV)
Based on the Sa’ar 4.5-class and since 2014 Israel Shipyards developed OPVs of different lengths, which can be equipped with weapons systems (45.70, 58 and 62 meters).[17]Israel Shipyards website
Israel Shipyards’ OPVs have since been exported to other navies, including Cyprus[18]Sipri Arms Trade database, Honduras,[19]Press release: Israel and Honduras sign an agreement to strengthen the Armed Forces, December 5,2016 Azerbaijan[20]Sipri Arms Trade database, Cote d’Ivoire.[21]Guy Martin, First Israeli offshore patrol vessel for Cote d’Ivoire arrives home, Defence Web, 8.3.2023
Usage by Israeli Forces
At least five Shaldag MK-III are in use by Israeli Navy since 2005. Two Shaldag vessels operate at the maritime Gaza border at any given time.[22]Shai Rubin, Sea Risks: The work of the Israeli Navy, Israel Defense, 22.9.2019 [Hebrew] Shaldag vessels have a central role in executing the siege of the Gaza Strip and in Israeli attacks on the Strip and have been involved in deadly incidents[23]Shai Levy, Fire in the middle of the sea: the patrol that operates off the coast of the Gaza Strip, Mako, 7.2.2013 [Hebrew] and have operated in several attacks on Gaza, including during the October-November 2023 attack on Gaza.[24]Ela Peleg, How does the ‘Typhoon’ kill terrorists? IDF website, 14.11.2023 [Hebrew]
The Sa’ar 4 was first operational use by Israeli Navy in the Yom-Kippur War in 1973. Was used for operations in the Red Sea, were used in the first Lebanon war in 1982 firing missiles to the Lebanese Coast.
As of 2019, eight Sa’ar 4.5 boats are in service in the Israeli Navy. The boats patrol off the shore of Gaza take an active role in implementing the siege on Gaza. They were operated during the Gaza wars – Cast Lead (2008-2009) Pillar of Defense (2012), Protective Edge (2014) – shooting missiles on targets on the coast of Gaza. Saar-4.5 boats took part in the take-over of the Gaza flotilla in 2011 (The Marmara Incident), leading to the killing of 13 of the flotilla’s passengers.
Subsidiaries / Acquisitions
Israel Shipyards Port (ISP), founded in 2008, is the first private port in Israel and a subsidiary of Israel Shipyards.[25]Israel Shipyards Port website
Ciment, founded in 2016, is an importer of cement subsidiary of Israel Shipyards.[26]Ciment website