Protected-vehicle company scores success with new endeavour

11th September 2015

By: Keith Campbell

Creamer Media Senior Deputy Editor

  

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South African specialist protected-vehicle company LMT, part of the Denel group, has won three significant vehicle production contracts over the past two years. The latest “is a very lucrative deal, with a Middle Eastern client”, reports business development head Vinesh Selvan. “We’re also expecting some follow-up orders.”

“LMT was originally a design house, providing consultancy services to the defence industry in South Africa and abroad,” he explains. “We’re now in a new area – manufacturing and marketing our own products, mainly armoured or protected personnel carriers. We’re starting to grow. Our workforce has almost tripled in size over the past 18 months. We now have a staff complement of about 280. The company really has a very positive future. We’re in a growth phase. We offer tailor-made solutions to customers, as per their user requirements.”

The company is currently developing its product range. At the moment, it has three models which are already in service abroad. These are the LM8 special operations vehicle, the LM13 multipurpose combat vehicle and the LM18 protected-transport vehicle. The 4 × 4 LM8 SOV is primarily aimed at law enforcement agencies, particularly specialised police units such as tactical intervention or reaction units (‘special weapons and tactics’ or ‘Swat’ in US jargon).

The LM13 MCV is a 4 × 4 armoured personnel carrier (APC) which can be equipped with a turret. The turret is unique in the sense that it can mount either a 7.62 mm light machine gun, a 12.7 mm heavy machine gun, a 40 mm automatic grenade launcher or a 20 mm cannon. The LM13 can carry nine people: the driver, commander, gunner and six infantry. The LM18 PTV is aimed at specialised transport of high risk or valued goods or for the transport of high-profile and maximum security prisoners, with internal individual cells and both internal and external closed circuit TV cameras.

The State-owned Denel group now holds 51% of the company, with 29% owned by the private-sector Pamodzi group and 20% by LMT’s original founding shareholders. This means that LMT is one of three Denel businesses operating in the armoured and protected vehicles sector, the others being Denel Land Systems (DLS) and Denel Vehicle Systems (DVS). Selvan assures that this is not a problem. “We are working in conjunction with DLS and DVS. We’re working as a team. We even do joint marketing, in places.”

LMT, DLS and DVS are not the only South African companies operating in this sector. There are also private-sector businesses involved, such as DCD Protected Mobility and the Paramount group. Again, Selvan does not see this as an issue. “We think that South Africa, although it has numerous APC manufacturers, has a very healthy environment for the sector. The competition between the various local companies drives our global competitiveness. Overseas customers come to our shores first when looking for wheeled APCs.”

LMT’s 25 500 m2 facilities are located in Waltloo, in north-east Pretoria. Apart from its design office, the company currently has two production lines for fabrication and assembly, as well as a separate prototype facility.

Edited by Martin Zhuwakinyu
Creamer Media Senior Deputy Editor

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