Denel subsidiary Pretoria Metal Pressings (PMP) says South African National Defence Force (SANDF) ammunition stocks are close to depletion and says that orders from the military are currently showing a “healthy increase” after 13 years of “insignificant sales”.
PMP also expects sales to improve further, Denel’s annal report, released last month shows.
The report notes the SANDF is currently spending about R60 million on small (5.56-12.7mm) and medium calibre (20-35mm) ammunition, adding that increasing that figure to R125 million a year is a “management focus” in the year ahead.
The company is an integrated mass manufacturer of small and medium calibre (20-35mm) ammunition and technology-related products. The latter includes brass strips, cups and discs, as well as commercial explosives, primers, mining drill bits and escape systems (rocket motors and power cartridges) for
aircraft and helicopters.
PMP employs about 1200 people and serves global defence markets as well as the SANDF, the SA Police Service and the Department of Correctional Services.
About 60% of its turnover is derived from export markets, making PMP a valuable earner of foreign currency, the annual report says. Revenue for the year to March was R600.6 million, including export revenue of R334.2 million. This compares with R522.5 million and R263.2 million respectively for the previous year.