BAE Systems Land Systems South Africa (LSSA) has been rebranded as Denel Vehicle Systems (DVS) following its takeover by the state owned Denel Group, which is positioning DVS to focus on the international market.
Denel Group CEO Riaz Saloojee said that his company was still outlining the new entity’s roadmap and strategy going forward. He noted that the acquisition gives Denel the ability to maintain and overhaul the whole logistics fleet of the South African National Defence Force.
Saloojee said last week that from the landward perspective, Denel is now able to manufacture all vehicle types covering firepower, mobility and support, allowing Denel to provide a full turnkey solution.
On 28 April this year, BAE announced the sale of its 75% stake in LSSA to Denel for R641 million ($53 million) in cash, although the complete acquisition cost Denel R855 million, as it also bought the remaining 25% stake from BAE Systems’ partner DGD Technologies.
Saloojee earlier said the acquisition was significant as the whole landward mobility capability of the SANDF is now invested in the state as DVS, Denel Land Systems, Mechem and Land Mobility Technologies (LMT) are under one roof.
He told defenceWeb that Denel plans to grow the division to produce more vehicle capacity than there is at present. DVS will be focused on the international market, particularly in areas like the Middle East and Africa.
At the release of its annual financial results last week Denel said it has deliberately strengthened its leadership position in landward defence systems and mobile infantry with the acquisition of BAE Systems’ Land Systems South Africa.