Aerospace and Defence Masterplan identifies short-term revenue opportunities

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The Aerospace and Defence Masterplan document has identified a number of pending export opportunities that could begin to generate revenues within 18 months for the South African industry.

In Oman, there is a potential R18 billion contract for upgrading existing G6 self-propelled howitzers, and supplying additional G6s and establishing a local maintenance and training facility.

Half of the Pakistan Army’s requirement for truck-mounted guns has gone to Norinco (China) but the remaining half is still potentially available for Denel, given government to government intervention. This would be worth some R7 billion, with the first revenue flowing within 18 months.

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The Masterplan states there is ammunition to the value of R500 million in store at Rheinmetall Denel Munition (RDM), waiting to be shipped, which has been held up for the better part of two years by difficulties and inaction at the National Conventional Arms Control Committee (NCACC) level. There are signed ammunition contracts for RDM ammunition worth some R4 billion that would be signed immediately on the pending permits being issued. There is a longer-term order pipeline of R14 billion pending, according to the Masterplan.

Denel Land Systems has a R3.5 billion potential upgrade opportunity of the existing G6 fleet, with first revenue flow within 18 months of commencement. It has conducted trials of the T5 self-propelled 155 mm howitzer with a possible initial order worth R800 million. The company also has an opportunity for R700 million worth of New Technology Weapon (NTW) anti-materiel rifles with revenue flowing within 12 months. The full requirement is worth some R3.5 billion.

Denel Vehicle Systems signed a contract for 30 RG31 mine-protected vehicles for R300 million, with a possible follow-on order for another 70 vehicles.

Brazil has contracted a local firm to carry out integration of the Denel Dynamics A-Darter air-to-air missile on the Gripen E fighters being acquired for its air force. This represents another potential opportunity for South African industry, the Masterplan states.

For more on this subject, consider attending the SAAMDEC/defenceWeb Aerospace and Defence Masterplan webinar on 25 May.



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