Denel reaches offset milestone on Malaysia’s turrets contract

13 May 2019 (Last Updated May 13th, 2019 12:36)

South African state-owned aerospace and military technology conglomerate Denel has launched its final offset initiative linked to its contract to supply turrets and integrated weapon systems to the Malaysian Defence Force.

Denel reaches offset milestone on Malaysia’s turrets contract
G6 155mm Self-propelled Artillery Gun. Credit: Denel SOC Ltd.

South African state-owned aerospace and military technology conglomerate Denel has launched its final offset initiative linked to its contract to supply turrets and integrated weapon systems to the Malaysian Defence Force.

The project to deliver equipment for Malaysia’s new generation AV8 armoured vehicles is claimed to be the largest ever in Denel’s history.

The latest and final of the offset programmes will see South Africa’s Council for Scientific and Industrial Research (CSIR) provide courses to participants from the Malaysian Armed Forces and offer an internship to a senior researcher from the National Defence University of Malaysia (NDUM).

Initial courses focused on radio frequency and microwave principles in electronic warfare. It was attended by 34 experts from the Malaysian armed forces and academia.

“Denel said it expects to deliver 100% of its offset obligations totalling €342m upon completion of the project at the NDUM in 2021.”

Denel Group chief executive Danie du Toit said: “The collaboration will deepen the cooperation on technology and research between South Africa and Malaysia.

“The experience we gained on the AV8 offset programme will benefit Denel in future initiatives and can contribute to the promotion of the broader South African defence and manufacturing industries.”

Denel said it expects to deliver 100% of its offset obligations totalling €342m upon completion of the project at the NDUM in 2021. Nine of the ten planned projects are already underway.

Denel SOC is claimed to be the largest manufacturer of defence equipment in South Africa. It operates in the military aerospace and land defence environment.

The company delivers systems and consumables to end users, as well as sub-systems and components to its industrial client base.

Denel also has several equity partnerships, joint ventures and cooperation agreements with various global players in the defence industry.