Feb 20, 2009
Local defence company expands global footprintBack
© 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
The establishment of State-owned aerospace and defence technology company Denel’s new Integrated Systems and Maritime division (DISM) will strengthen the company’s position as a high-end technology powerhouse and expand the range of products and services it now...
MOH-9 Armour Ceramics, a division of Multotec Wear Linings, part of the Multotec Group, launched its 99% alumina oxide ceramic (Al2O3) in December, available as both monolithic body armour and vehicle armour tiles. Owing to its improved hardness, lighter weight...
Aerospace and defence company Denel’s latest air-to-air missile, the A-Darter, passed critical in-flight guided tests late last year and production on this fifth-generation missile system is expected to start before the end of 2015. Denel CEO Riaz Saloojee says the...
Updated 8 minutes ago Proposed regulations by the Department of Health have driven manufacturers back to sugar while the search is on for new, more natural sweeteners, creating uncertainty in the nonnutritive sweetener segment, which could affect profits. This was according to Frost &...
Updated 19 minutes ago East Rand-based Mega Aero Training Academy (Mata) has secured European accreditation and recognition for its aircraft maintenance courses. The Safomor Group subsidiary and College Ireland on Wednesday signed an agreement to enable Mata students to obtain European...
Updated 45 minutes ago Despite its challenges, Africa remains an attractive long-term global investment destination, with its younger and fast-urbanising populations and rising levels of income presenting opportunities to a significantly liquid global financial market, Nedbank economist...
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
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.
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
Next ArticleArmour components manufacturer to focus on vehicles