Denel wins major vehicle contract from Middle East

9th November 2015

By: Keith Campbell

Creamer Media Senior Deputy Editor

  

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South Africa’s State-owned defence industrial group Denel on Monday announced that its recently acquired subsidiary, Denel Vehicle Systems (DVS – previously BAE Systems Land Systems South Africa or LSSA) had finalised a R900-million contract with United Arab Emirates group Nimr. The deal covers the development and supply of the N35, hitherto known as the RG35, armoured and mine protected vehicle.

“We are delighted to work with Nimr, one of the world’s leading manufacturers of wheeled armoured vehicles,” affirmed Denel Group executive: business development Zwelakhe Ntshepe. “There is a strong synergy between our companies and products and we are confident that we can, together, develop and improve the N35 to be among the best in its class.” Denel describes the N35 as “an armoured vehicle with superior mine protection and combat capabilities that can be used in command, ambulance and recovery roles”.

This is one of the biggest contracts DVS/LSSA has won in the past few years. It will ensure work for two of DVS’s three major divisions for the next two years, namely OMC (for the vehicles themselves) and Gear Ratio (for the assembly of the driveline components).

Ntshepe noted that the contract confirms Denel’s pre-eminent position in the area of mine protected vehicles and landward mobility. It is the latest of several contracts to be won by DVS after it joined the Denel Group.

Altogether, the group’s landward defence businesses have been awarded deals worth more than R1.5-billion over the last few months. These included a non-defence contract from Steloy Castings for components for new electric locomotives for national freight railway group Transnet.

Another contract is for 24 mobile mortar platforms (based on the RG31 mine protected vehicle), including technical support, which will be delivered over the next year. Finally, a number of contracts have been awarded by South African defence acquisition agency Armscor, for the supply of spares for, and maintenance of, South African National Defence Force combat and supply vehicles.

Edited by Creamer Media Reporter

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