Ten Casspir armoured personnel have been shipped to Sudan as the first part of a new long-term agreement with the United Nations that will see Mechem supply mine-protected vehicles for its peacekeeping operations in Africa.
Denel said the projected income over the two-year period of the agreement is $30 million which will assure a steady flow of revenue to the company and open up possibilities for additional contracts.
The ten Casspirs were shipped to Sudan in December 2015. These vehicles were equipped with special mine roller attachments to be used in the clearance of land mines and unexploded ordnance.
The long-term agreement also includes the future supply of five Casspir Stallion recovery vehicles while a further order for five more vehicles is in the planning stage as well as orders for other special Casspir variants.
Ashley Williams, the General Manager of Mechem, said the agreement with the UN confirms the confidence that the international community has in the quality of Denel’s products and the trust in the company’s ability to provide support services.
The agreement means that Mechem is now qualified to supply the vehicles to the UN’s Office for Project Services when the requirements arise. Qualification means Mechem does not have to draft and submit proposals for each individual bid.
A wide-range of Mechem’s mine-protected vehicles, including Casspirs, ambulances and recovery trucks are included on the list already approved by the UN.
Williams says the agreement with the UN adds to Denel’s global reputation in the demining environment and will have major benefits for the broader South African defence industry. A long-term agreement such as this will filter down to a range of suppliers that provides parts and spares used in the manufacturing of the vehicles.
Colin Singarum, senior marketing executive for the region said “this is a huge opportunity for Denel to showcase our quality and capabilities.”