/ 23 November 2000

Denel seals $50m arms deal with Malaysia

OWN CORRESPONDENT, Pretoria | Thursday

THE Denel group this week an agreement in Kuala Lumpur with the government of Malaysia for the supply of artillery systems to the Malaysian armed forces.

The contract, valued at $50m, provides for delivery of 22 units of the South African-developed 155mm 45-calibre G5 Mark 3 towed artillery system, along with accessories, fire control system, ammunition, modular charges, logistic support and training.

“As an important client of ours, the Malaysian armed forces have once again honoured us by selecting Denel’s 155mm artillery guns,” said Max Sisulu, deputy CEO of Denel.

“Still, for Denel this order is but the first step in expanding the special ‘South-South’ relationship we have with Malaysia.

Malaysia’s Secretary General to the Treasury, Dr Samsudin Hitam, signed the agreement with the Denel Group.

South African High Commissioner to Malaysia, Ms Lindiwe Mabuza, and Flip Botha, Denel’s newly appointed chief executive officer, attended the signing.

Denel is discussing other joint developments of artillery systems with Malaysian defence industries.

One area under consideration is Denel’s recently launched artillery technology demonstrator, the 105mm light experimental gun, seen for the first time in September at South Africa’s defence exhibition, Africa Aerospace & Defence 2000.

It is expected that the first of the new G5 Mark 3 systems would be delivered to Malaysia next year.

Denel’s LIW division, responsible for the manufacture of both the towed G5 and the 155mm G6 self-propelled system, has already started tooling up for the Malaysian production.

The Mk 3 is the latest version of the G5 artillery system, incorporating digital fire control, advanced communications and enhanced safety features.