Feb 20, 2009
Local defence company expands global footprintBack
Alrode|Benoni|Pretoria|Africa|Armscor|BAE Systems|BAE Systems Land Systems OMC|Defence|General Dynamics Santa Barbara Sistemas|IST Dynamics|Land Systems Dynamics|Land Systems South Africa|Systems|Africa|Chad|Ireland|South Africa|United States|RG31 MK5E Mine|Armoured And Mine-protected Vehi- cle Manufacturer|Main Contractor|Product|Products|Service|Supply Product Systems|Systems|Vehicle Manufacturer|European Union|Irish Army|Irish Department Of Defence|Spanish Army|United Nations|Amid Doubt|Johan Steyn|Operations
© Reuse this
In December 2008, BAE secured an order to supply 27 vehicles of four variants of the LTAV. The variants include the standard variant, the surveillance variant, the reconnaissance variant and the communications variant. BAE will supply product systems complete with combat kits.
It has been reported that the contract is worth about R258-million, and includes options for a further 27 vehicles to be manufactured and delivered. Deliveries will start this year and take place over a three-year period.
The Irish army is using the LTAVs for peacekeeping operations abroad, for the United Nations and the European Union (EU). Currently, Ireland has an infantry battalion serving with the EU force in Chad, northern Africa.
The RG32M LTAV will be used in a number of roles. These include surveillance, communications, target acquisition and transporting US-made Javelin antitank missiles.
The RG32M is reported to have improved mine protection in comparison with previous models, providing greater blast survivability and crew protection.
The company also secured an order with the Spanish army for 100 RG31 MK5E mine-protected vehicles in October 2008.
Of the 100 ordered vehicles, 85 are troop carriers. There are also ten ambulances and five command and control post vehicles.
Combat kits for the vehicles will be fitted by Spanish defence company General Dynamics Santa Barbara Sistemas.
Economic Leaps Amid Doubt
Although the global economy is in recession, Land Systems South Africa MD Johan Steyn strongly believes that the company will not be affected by it, at least not for the next two years. “We have a long-term strategy in place, should the economic crisis affect our business operations,” asserts Steyn.
This long-term strategy has translated into BAE Systems expanding its premises in Benoni, Alrode and Pretoria.
Land Systems South Africa as a business component of BAE Systems is rapidly expanding through growth and acquisitions. In August 2008, the company acquired defence products manufacturer IST Dynamics, now called Land Systems Dynamics.
“Owing to a number of large contracts for the Land Systems OMC and Land Systems Gear Ratio businesses, our majority shareholder, BAE Systems, has invested a significant amount of capital into facility upgrades,” says Steyn.
Further, he reports that the company has created over 300 jobs in the past year. “Another significant aspect is that our development is about 2% of turnover,” he adds.
The South African Market
The defence industry in South Africa is primarily export orientated and
“However, Land Systems South Africa still regards the South African National Defence Force, through defence company Armscor and the South African Police Service, as its most important customer. “In fact, the increase in export revenue has enabled us to improve capabilities and facilities to better serve local clients,” says Steyn.
Edited by: Laura Tyrer© Reuse this Comment Guidelines (150 word limit)
Other Defence News
Article contains comments
A ministerial medical task team appointed by the minister of defence has made recommendations on how to improve the country's three military hospitals, the department said on Monday. The task team, consisting of nine independent health care professionals, looked at...
When Reutech Radar Systems was set up in 1987, under its original name ESD South (ESD was a subsidiary of the then Barlow Rand group, since “unbundled”), its first programme was Project Hexagon, which the company consciously used to develop a profound understanding...
South African radar company Reutech Radar Systems (RRS) is planning to develop new products next year, while remaining focused on its core businesses. "This is to maintain our momentum in both the defence and commercial markets," says RRS CEO Carl Kies. RRS is a...
Recent Research Reports
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...