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SA firm in major defence exports

25 May 2005

South African armoured vehicle manufacturer, Land Systems OMC, has won a contract to supply the Italian Carabinieri with 30 RG-12 public-order vehicles. Land Systems is a business unit of BAE Systems.

The deal is valued at around R64 million ($10 million).

This is the third major contract announced by the firm in recent months. Last week, the company announced an order of more than 100 RG-32M for the Swedish Defence Force, worth almost R180 million ($28 million), and in February the US Army ordered 148 RG-31 vehicles, worth around R507-million ($78-million).

"This is a magnificent endorsement of South African capability in design, engineering and technology," said Johan Steyn, managing director of Land Systems OMC.

He said that the orders would mean creating additional jobs at the firm's East Rand manufacturing plant.

"We also expect it to have a similar positive knock-on effect upstream throughout our chain of local suppliers," he explained.

The vehicles will be built using some components from Italian company Iveco Defence Vehicle Division, who are the primary contractors. Although the engines will be sourced from Iveco, the South African company will handle all of the manufacturing locally.

The RG-12 is a 4x4 armoured vehicle with an all-steel, welded armour, monocoque hull, which protects the crew against small arms fire, firebombs and hand grenades.

Initially designed as an anti-riot vehicle, the RG-12 is readily adaptable to a variety of roles. In public order policing configuration, 12 fully equipped police officers can operate in the fully air-conditioned vehicle for extended periods.

Both the Italian and Swedish deals are tied to offset programmes related to the strategic arms deal. The Us Army's acquisition was a straight purchase.

The order from the US Army came after an incident last year in which a RG-31 in Afghanistan was destroyed by a mine. Five soldiers were able to exit the vehicle with only light injuries. The soldiers wrote a letter of thanks to Land Systems OMC saying the vehicle had saved their lives.

"If it was not for its superior design and manufacturing we would not be able to write this letter today,” the soldiers wrote.

"This order simply confirms what we have always known – that in its class the RG-31 is the best mine protected vehicle in the world,” said Steyn.

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