Elta plant will be relocated to build 70,000 housing units near the Haredi quarter in Ashdod

December 29, 2024   

The Israel Land Authority (ILA) management approved this morning (Sunday) the principles for the agreement to relocate the Elta factory from the outskirts of the ultra-Orthodox 7th District in Ashdod to a new location in the city. The move will enable efficient utilization of land spanning approximately 9,500 dunams, for the development of approximately 70,000 housing units, industrial, employment, and commercial areas, along with public spaces and buildings, and a developed road network. Relocating the factory will be a significant step towards the continued development and prosperity of Ashdod and its positioning as one of the largest cities in Israel. The Elta factory - a subsidiary of Israel Aerospace Industries - is located in eastern Ashdod, and its current location prevents the advancement of housing and employment plans in the areas adjacent to it. The decision to relocate the factory to a new site within the city includes adaptation to the needs and nature of the factory's existing and future activities. The decision was led by Minister of Construction and Housing and Chairman of the Council of the Israeli Aerospace Industries, Yitzhak Goldknopf. The state will allocate the factory an alternative area of ​​approximately 250 dunams in size at an agreed location in Ashdod, with the cost of relocation estimated at approximately 3.94 billion shekels. The evacuation will be completed within 4 years from the date of approval of the plan, with the Israeli Aerospace Industries bearing the costs of relocation and responsibility for the demolition of the buildings, soil purification, and groundwater restoration. Yitzhak Goldknopf, Minister of Construction and Housing: "This is a dramatic move that will bring about a significant change in the field of housing and urban development in Israel. Relocating the Elta factory enables the development of the land for the construction of approximately 70,000 new housing units and will provide a response to the demographic and social needs of the State of Israel in the coming decades. This move will affect the entire southern region, and will lead to significant economic growth and the creation of new jobs. We are working to maximize the use of land resources and accelerate the pace of construction starts in Israel." Yankee Quint, Director of the Israel Land Authority: "Relocating the Elta factory is a strategic step for the State of Israel that will pave the way for the development of Ashdod on a significant scale. The Israel Land Authority allocates many resources to relocating institutions and entities to new locations in order to use the land more efficiently and for development needs. In the past year, we have signed and implemented a number of similar agreements, such as the third base in Ramat Gan and the signing of a historic agreement with the Baha'i World Center, which will enable the construction of thousands of new housing units." IAI CEO Boaz Levy said in response: "In recent years, IAI has been working together with the Ministry of Finance and the Ministry of Housing and Urban Development to relocate the Elta division to an alternative location in Ashdod. We welcome the statement by Housing Minister Yitzhak Goldknopf that will allow us to continue to advance the issue."