Denel has landed the biggest contract in its 16-year history, to supply the South African National Defence Force (SANDF) with 264 infantry combat vehicles worth about R8-billion, Denel CEO Shaun Liebenberg announced on Thursday.
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.
”Our Department of Public Enterprises and the Department of Defence, 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 DLS 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 realised, mainly for young technicians and engineering students wanting to make a career in the defence-related industry.
South African companies would deliver more than 70% 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 ageing Ratel, and would serve the army for the next 25 to 30 years, Liebenberg said.
Denel’s proposal to meet Armscor’s tender requirement was based on a Finnish Patria platform with a turret designed by DLS.
Five variants of the combat vehicle would be required — Command, Mortar, Missile, Section and Fire Support vehicles.
Whereas the Command variant would be equipped with intricate network communications and battlefield awareness systems, the others would carry a variety of weapons systems.
The actual vehicle would be locally built under a Patria licence.
It would be an 8X8-wheeled vehicle in the 25-ton class, equipped with various turret and on-board options to provide infantry troops with motorised transport and protection.
”As prime contractor, Denel will be required to manage a supply chain of scores of local subcontractors … all of which stand to have guaranteed business for the next 10 years, some with follow-on support work after delivery,” he said.
Several of Denel’s ten businesses, along with numerous other specialist suppliers, would provide required systems for the turrets.
Denel Dynamics’ proven Ingwe long-range anti-armour missile was destined for the Missile variant.
While DLS had already started working on the weapons systems, including an indigenous 30mm cannon and a sophisticated mortar to be integrated in the turret, Denel Munitions would supply the ammunition and mortar bombs, he said.
”While recognising the huge challenge to execute a contract this big, I’m fully confident Denel Land Systems can manage it well,” Liebenberg said.
DLS had previously produced hundreds of the renowned South African G5 and G6 artillery systems, sold internationally, and supplied the combat turret and weapons systems on the Rooikat armoured fighting vehicle.
Meanwhile, it was also announced by Liebenberg on Thursday that Denel lost out in its bid to sell 50 Rooivalk attack helicopters to Turkey because the company was forced by various factors to price itself out of contention. — Sapa