Denel Signs R3.5 Billion Manufacturing Deal With Malaysia
Denel has signed a Euro 340 million (R3.5 billion) contract with Malaysia to supply a range of turret and integrated weapon systems to be fitted onto 8X8 armoured vehicles.
Zwelakhe Ntshepe, the Group Executive Business Development and Corporate Affairs of Denel, says this is the largest export contract in the company’s history and will result in a significant cash injection and job creation in the local industry.
The turrets will be exported to Malaysia over a seven year period – with the first consignment ready for delivery in January 2013.
Mr Ntshepe says the final negotiations with Malaysia were concluded at the recent Defence Services Asia Exhibition held in Kuala Lumpur, together with our local partners DRB-Hicom (Deftech), our partner in Malaysia.
The CEO of Denel Land Systems (DLS), Stephan Burger, says his company will be responsible for a number of strategic components that have been designed and developed at its campus in Lyttelton:
Mr Burger says the production of the first consignment of turrets is on schedule and will be delivered in January 2013 for trials by the Malaysian Army.
The turrets and weapon systems will be integrated on the Malaysian Army’s 8 X 8 vehicles which are based on the Pars armoured vehicle platforms from the Turkish company, FNSS.
Through the contract Denel is participating in the Malaysian Economic Enhancement programme which entails the production and assembly of the turrets in Malaysia. The agreement provides a platform to transfer weapon system integration technology to Deftech in order to create a sustainable capability in Malaysia.
Mr Burger says the contract opens the door to future industry cooperation between the two countries including on-going maintenance and future upgrades of the turrets.
Mr Ntshepe says the manufacturing of the turret systems grew out of DLS’s development of the Badger infantry combat vehicle on behalf of the South African Army. The Badger meets the requirements of a modern army involved in both high-intensity warfare and peacekeeping operations and will replace the 30-year old Ratel as the mainstay of the mechanised infantry force.
The Malaysian contract strengthens DLS’s reputation as a strategic hub of innovation and advanced manufacturing capabilities on the African continent. It will enable the company to retain skilled and highly-skilled engineers and artisans and attract a new generations of innovators.
Denel Land Systems, a company in the Denel SOC group is a defence system house for landward mobility and firepower solutions. Its primary focus is to provide products to the SANDF but it also serves international customers as a technology partner, system integrator and subsystem supplier.
DLS is best known for its development of the G5 (towed) and G6 (self-propelled) guns, the world’s leading 155 mm artillery systems. The G5 is currently in service in Malaysia.
Mr Burger says DLS “has a unique balance of technologies and engineering capabilities,” to take complex systems or products through their entire lifecycle, from conceptualisation to production.
Riaz Saloojee, the Group Chief Executive says “I am excited by this contract as it confirms Denel’s position as a global player in the defence manufacturing industry and will lead to a growing interest from the international community in the quality and range of products and services produced by us.”