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An Israeli defence firm is planning to partner with a Dutch company to establish an arms factory in the Netherlands, despite diplomatic tensions between the two countries over Gaza.
Israel Weapon Industries (IWI) and Dutch defence company Artillerie Inrichtingen Armaments (AIA) said they plan to establish a production facility in the Netherlands where IWI weapons will be manufactured, “combining Israeli defence technology and expertise with Dutch industrial capacity”.
The proposed facility will produce IWI’s Arad 5 rifle and Negev UX, with the Israeli company providing the technology and manufacturing expertise and AIA establishing the Dutch production infrastructure.
The companies said the partnership would “establish a foundation for long-term domestic production, technical expertise and life-cycle support in the Netherlands”.
The agreement comes amid mounting criticism of Israel in Europe, with several governments restricting arms exports to the country and calls for a wider embargo. The Netherlands itself tightened controls on military and dual-use exports to Israel in April 2025 and imposed a ban on imports, purchases and sales of products from Israeli settlements in the West Bank on September 22.
On Sunday, around 200,000 protesters took to the streets of Amsterdam to demonstrate against the Netherlands’ policy towards Israel, with some waving flags bearing the slogan “We support Hamas”.
Despite European actions including sanctions against Israel, defence cooperation involving Israeli technology has continued. Israeli arms exports reached a record $14.8 billion (£11bn) in 2024, according to Israel’s defence ministry, while European countries have continued purchasing Israeli defence systems.
SK Group vice-chairman Ronen Hamudot said the partnership would bring decades of Israeli manufacturing experience to a new industrial setting.
AIA chief executive Gerard Zondervan said “a strong Dutch industrial base is fundamental to national security.”
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