Media Releases

Denel awarded new SA army contract
Monday, 2 December 2002

South Africa's State-owned defence industrial group, Denel has confirmed that it has been awarded a significant contract for the Local Warning Segment (LWS) of the Ground Based Air Defence System (GBADS) for the South African Army. This represents the first phase of the Army's GBADS requirement.

"We are delighted that Armscor has awarded the prime contractorship in this large defence programme to Denel," says Max Sisulu, Denel's deputy CEO (also chairperson of AMD, South Africa's defence industries association).

"It is testimony to the high technology capabilities of our local defence industry, and especially in Denel's position, as a leading aerospace and defence supplier. This programme will provide the SANDF with a sophisticated yet cost-effective system, aimed at improving South Africa's air defences".

Denel has started negotiating with both local and foreign subsystems suppliers. Through this contract, Denel is bringing together local defence companies and black empowerment groups. These include ADS (part of Thales), Grintek Communications, Reunert Radar Systems, Cybersin and Logtek Engineering Solution along with major international players like BAE Systems, Thales and Alenia Marconi Systems.

"The proposal from Denel and its partners combines the best subsystems and products available on the market today, at cost competitive price," explains Sisulu. "As very few countries have been able to package such a high technology programme on this scale, I believe South Africa will have an excellent product for export, even to First World countries".

Substantial provision has been made in the contract for local Defence Industrial Participation and workshare from the international companies involved, as well as a significant National Industrial Participation project.

"It will allow us to expand on our affirmative procurement and local SMME programmes, as both Denel as prime contractor and our subcontractors will involve previously disadvantaged groups in many of the subsystem contracts," says Sisulu. "As one of the largest South African defence contracts in recent times, the GBADS programme heralds new skills development and technology opportunities for South African industry, including the smaller players".