South Africas’s Paramount Group and The Armored Group (TAG), a leader in the US protected vehicle market with a strong international reach, have signed a deal to promote each other’s vehicles in selected markets.
In signing the agreement at AAD this week, both companies insisted their vehicle ranges were complementary rather than competitive and they could help each other sell in new markets.
The deal was signed by Paramount Executive Chairman and founder, Ivor Ichikowitz and the President of TAG, Robert Pazderka at AFB Waterkloof.
Paramount has a reach into military markets whereas TAG is strong in the commercial and personal protection markets.
The companies said in a joint statement TAG’s American client and manufacturing base could provide Paramount with further access to the US military and law enforcement markets. Ichikowitz said TAG had a good foothold in the US market and with the United Nations and could assist Paramount in these markets. The deal will give TAG access to Paramount’s markets in Africa, the Middle East and Central and Eastern Europe.
Detroit based TAG began business in 1992 by building vehicles for cash-in -transit. It has since become a leading US builder of cash-in-transit vehicles and expanded into production of armored personnel carriers, SWAT vehicles used by police forces, and personal protection vehicles.
The company has a large business in armouring vehicles such as Toyota Land Cruisers, the Toyota Hilux and other commercial vehicles. This is a service for which there is strong demand in the world’s trouble spots and rising sales in many African countries. Its clients include the US Army and government, multi-nationals and governments around the world.
TAG has manufacturing facilities in Detroit, Toronto, and in the United Arab Emirates. Its sales offices are in the US, Canada, Dubai, and Mexico and in Africa, in Ethiopia, Kenya, Libya and Nigeria.
Ichikowitz, said the strategic alliance was in line with Paramount’s strategy of forming partnerships with “best of breed companies” in the defence industry. He said it made sense for Paramount to collaborate rather than to develop products that would compete in the commercial and personal armoured vehicle space.