Denel lands large defense contract in S. Africa

South African arms maker Denel (Pty) Ltd Thursday landed the biggest contract in its 16-year history, to supply the South African National Defense Force with 264 infantry combat vehicles worth about 8 billion rand (about 1. 13 billion U.S. dollars).

Denel CEO Shaun Liebenberg announced that the contract, popularly referred to by its Armscor designation Project "Hoefyster," was about three years in the making and would be supplied through Denel subsidiary, Denel Land Systems (DLS).

He told a media briefing at parliament in Cape Town: "Our department of public enterprises and the department of defense, along with Armscor and the SANDF, all cooperated admirably to bring us to this point."

"But importantly, for Denel a new chapter has been written. This Armscor contract puts Denel Land Systems on the road to sustainability," Liebenberg said.

It would drive the capability of Denel and other local companies to operate at world-class standards and international best practice, with tremendous opportunities and further spin-offs to be realized, mainly for young technicians and engineering students wanting to make a career in the defense-related industry.

South African companies would deliver more than 70 percent of the total value of the contract.

Armscor would be placing phased orders on DLS over a ten-year period as the milestones were achieved towards final delivery to the army of five variants of the ICV (infantry combat vehicle) system.

The development phase would last about three years, with the first vehicle rolling off the production line in about six to seven years' time.

The new ICV was intended to replace the aging Ratel, and would serve the army for the next 25 to 30 years, Liebenberg said.

The actual vehicle would be locally built under a Patria licence. It would be an 8 X 8 wheeled vehicle in the 25-ton class, equipped with various turret and on-board options to provide infantry troops with motorized transport and protection.

Source: Xinhua