Denel reaches major milestone in the execution of Malaysian Army contract

12th September 2019 By: Rebecca Campbell - Creamer Media Senior Deputy Editor

Denel reaches major milestone in the execution of Malaysian Army contract

The GI30 30 mm cannon-armed version of the Denel turret, here mounted on a prototype of the South African Army’s Badger fighting vehicle
Photo by: Duane Daws/Creamer Media

South Africa’s State-owned defence industrial group Denel announced on Thursday that it was delivering the hundredth turret it has produced under an export contract from Malaysia. The turrets are being fitted to the Malaysian Army’s new AV8 armoured vehicles. The contract, worth €342-million, is Denel’s biggest ever export order.

“We are extremely proud of what we have achieved in Malaysia,” affirmed Denel Landward CEO Mxolisi Makhatini. “Despite Denel’s constrained liquidity position and significant changes that the organisation is undergoing, we have managed to stay focused and deliver the hundredth out [of] 122 to our client as per specification and schedule and to execute almost 98% of our offset obligation to date.”

“This is an historic and significant achievement which again demonstrates our leadership role in landward defence and Denel’s capacity to produce advanced technology systems for both the local and international markets,” he stated. “Denel has contributed to technology transfer, capability and vendor development as well as skills transfer to ensure that it is able to meet its contractual obligations.”

The Malaysian requirement is for a total of 177 turrets and remotely-operated weapons stations (ROWS). This is composed of 69 armoured infantry fighting vehicle turrets, armed with Denel’s GI30 30 mm cannon plus a machine gun, 54 anti-tank missile turrets, armed with the GI 30 cannon and Denel Dynamics Ingwe laser-guided missiles, and 54 ROWS. (The deal includes the supply of 216 Ingwes.)

The production of the turrets has benefitted many South African small and medium companies, from which Denel bought products and services worth millions of rands. Components from about 13 original-equipment manufacturers are integrated into the turrets.

That the result is “seamless functionality” is, stated the group, the result of “solid project management” and “sound governance” that is in accord with global best practice. “Throughout the delivery process we have been able to uphold the high standards, product quality and professionalism that Denel is renowned for,” assured Makhatini.