Police are trying to talk protesters off the roof of a business in Lichfield.
Members of the London Palestine Action Group have set up camp on top of the UAV Engines factory in Shenstone.
The group say the company makes engines for Israeli drones.
They have erected a banner saying ‘UK: Stop Arming Israel’ and are waving Palestinian flags.
On their Twitter account, the group said there were nine members on the rooftop – and warned they were not intending to leave soon.
“By allowing this factory to export drone components to Israel, the UK Government is providing direct support and approval to Israel’s massacres,” the group said.
“We demand the permanent closure of the factory and an end to all forms of military trade and co-operation with Israel.”
The protesters have also posted pictures of themselves padlocked to the roof structure.