South African defence company Rheinmetall Denel Munition (RDM) has helped set up a munitions manufacturing plant in Saudi Arabia in a venture with that country’s Military Industries Corporation (MIC), the Saudi Press Agency has reported. According to MIC head Mohammad Almadhi, the establishment of the plant cost some $240-million and it was built under licence from, and with the assistance of, RDM.

The new factory was opened on March 27 by South African President Jacob Zuma and by Saudi Deputy Crown Prince Mohammed bin Salman bin Abdulaziz. (Prince Mohammed is also his country’s Second Deputy Prime Minister, Minister of Defence and chairperson of the board of directors of the MIC). The facility is located at Al-Kharj, in central Saudi Arabia, south of the capital, Riyadh.

The plant will manufacture 60 mm, 81 mm and 120 mm mortar bombs, 105 mm and 155 mm artillery shells and aircraft bombs ranging from 226 kg (500 lb) to 907 kg (2 000 lb). It is composed of nine industrial buildings, each with its own specific function, including heat treatment and surface treatment, assembly and filling, processing, packaging and destructive and nondestructive testing. According to Almadhi, the factory has a production capa- city of 300 artillery shells or 600 mortar bombs a day. It will be staffed by 130 engineers and operators. He further noted that his company was now able to make many different defence products.

RDM is a joint venture between German defence group Rheinmetall Waffe Munition and South African State-owned defence industrial group Denel and was created in 2008. Rheinmetall holds 51% of RDM and Denel the remaining 49%. RDM describes itself on its website as a company that “specialises in the development, design and manufacture of large- and medium-calibre ammunition families and is a world leader in the field of artillery, mortar and infantry systems, as well as plant engineering”. The Middle East is one of its target markets.

Zuma was in Saudi Arabia on March 27 and 28 on a State visit. The aim of the visit was to strengthen political and economic ties between the two countries, including increasing trade and investment. Consequently, one of the members of his delegation was Trade and Industry Minister Dr Rob Davies.

The defence industry was one of the sectors that received special attention. Other sectors highlighted by the South African delegation included agricultural products, agroprocessed goods and services, manufacturing and mineral beneficiation. The involvement of South African companies in construction and engineering in infrastructure develop- ment in Saudi Arabia, under the Saudi National Transformation Plan, was also stressed.

“We are very pleased that this State visit will ensure, among other things, continued Saudi private-sector investment in our country’s renewable-energy sector in support of the National Development Plan; the South African petrochemicals sector; banking and finance; and tourism infrastructure, as well as Saudi participation as a maritime State in our Operation Phakisa,” affirmed Zuma. During his visit he also addressed a meeting of high-level South African and Saudi business leaders. He urged them to set up an entity to promote business-to-business cooperation between the two countries, with the aim of increasing Saudi investment in South Africa and South African exports to Saudi Arabia.

According to The Economist Pocket World in Figures 2015, Saudi Arabia ranks as the 20th-biggest economy in the world in purchas- ing power parity (PPP) terms, with a gross domestic product (GDP) of $883-billion. South Africa lies in 25th place, with a PPP GDP of $576-billion. Saudi Arabia’s main imports are machinery and transport equipment, foodstuffs, and chemicals and metal products. Its main exports are, of course, crude oil and refined petroleum products.