Denel, Armscor highlight benefits of multibillion-rand manufacturing deal
A ten-year multibillion-rand Armscor contract, which would see State-owned Denel produce over 200 armoured vehicles for the South African National Defence Force (SANDF), was expected to “significantly and permanently” change the South African defence industry.
The full-scale manufacture of the Badger New Generation Infantry Combat System would deliver direct and indirect jobs, while enabling enterprise development opportunities and increasing skills development and retention in the defence industry.
“This is the most significant defence contract signed with a South African company in at least the last ten years and demonstrates government’s and the SANDF’s confidence in the ability of the local industry to provide frontline equipment,” Denel Group CEO Riaz Saloojee said.
The production of the Badger is expected to create about 2 000 jobs during its production period, but the spin-offs in the defence industry would be multiple job opportunities primarily in the development and manufacturing phases.
Small- and medium-sized enterprises would benefit as they act as subcontractors and suppliers for the project.
The infantry combat vehicle would provide the SANDF with unrivalled firepower, mobility and maximum armoured protection to the soldiers it transports and was expected to eventually replace the SANDF’s existing fleet of armour protected combat vehicles, such as the Ratel.
“The production order for the Badger vehicle represents a significant chapter in the history of the SANDF in that it provides a much-needed capability for troops involved in critical peacekeeping operations in other African countries,” Secretary for Defence Dr Sam Gulube said.
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