Feb 20, 2009
Local defence company expands global footprintBack
Alrode|Benoni|Pretoria|Armscor|BAE Systems|BAE Systems Land Systems OMC|General Dynamics Santa Barbara Sistemas|IST Dynamics|Land Systems Dynamics|Land Systems South Africa|Africa|Chad|Ireland|South Africa|United States|RG31 MK5E Mine|Armoured And Mine-protected Vehi- cle Manufacturer|Main Contractor|Supply Product Systems|Vehicle Manufacturer|European Union|Irish Army|Irish Department Of Defence|Spanish Army|United Nations|Amid Doubt|Johan Steyn
© 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
Other Defence News
South Africa’s State-owned defence industrial group Denel currently has contracts valued at about R30-billion, which will run over the next seven to ten years, landwards-based defence company Denel Land Systems (DLS) CEO Stephan Burger tells Engineering News. He...
A statistical report, published by the Department of Environmental Affairs on January 30, states that 86 rhino have been killed by poachers in South Africa to date this year, bringing the total number of rhino killed since 2008, to 2 827. Last year, 1 004 rhino were...
South Africa-based defence solutions business Paramount Group’s acquisition of South Africa-based naval vessel solutions company Nautic Africa in November not only enables Paramount to enter the naval defence market but also provides Africa with naval defence...
Recent Research Reports
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
Road and Rail 2013: A review of South Africa's road and rail infrastructure (PDF Report)
Creamer Media’s Road and Rail 2013 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...
Liquid Fuels 2013 (PDF Report)
Creamer Media’s 2013 Liquid Fuels report examines South Africa’s liquid fuels market, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing,...
This Week's Magazine
This month’s report includes details of junior miner Papillon Resources’ mining permit for its flagship Fekola gold project, in Mali; the Waterberg Coal Company’s feasibility on the development of an opencast mine, in Limpopo, to produce ten-million tonnes a...
A structured approach, wherein managers personally engage at each level of the project, is necessary to mitigate delays to the workflow on mega construction projects, says State-owned Eskom Kusile power station projects GM Abram Masango. The 4 800 MW Kusile power...
Construction of transmission lines to evacuate power from a regional hydroelectric project in East Africa, which was hanging on the balance following the withdrawal of financing by key partners, is now back on track. After six months of uncertainty, the African...
Three Memorandums of Understanding (MoUs) were signed between South African and Malaysian companies at the Malaysian High Commission in Pretoria on Friday. These MoUs are part of the indirect offsets programme South Africa is providing in return for Malaysia’s...
The South African new vehicle market may well dip to 640 000 units in 2014, says Toyota South Africa Motors (TSAM) sales and marketing senior VP Calvyn Hamman. This is the first prediction that anticipates a drop in the market. To date economists and industry bodies...
Next ArticleResearch key to tackiling security challenges