Denel bags R93m UK export order

1 December 2010

Pretoria Metal Pressings (PMP), a division of South Africa’s Denel Group, has won a R93-million order for ammunition components from Global Combat Systems Munitions, a unit of BAE Systems in the United Kingdom.

Pretoria-based PMP began manufacturing brass cups and discs for BAE Systems in 2001, and has since supplied more than 2.4-billion components in more than 350 weekly shipments. Brass cups and discs are the basic components from which small and medium caliber ammunition is manufactured.

“This latest follow-on order is for the deliveries in 2011. In addition to ensuring the retention of skills and jobs at PMP’s Brass plant, this export contract also increases PMP’s foreign exchange earnings”, said PMP chief executive Carel Wolhuter.

Successful partnership

PMP’s successful partnership with BAE Systems is a fruit of the UK company’s activities in fulfilling its Industrial Participation offset obligation tied to South Africa’s purchase of Hawk and Gripen aircraft for the SA Air Force.

The South African-manufactured brass components are shipped weekly to Global Combat Systems Munitions at Radway Green, England in 40- to 60-ton batches.

Global Combat Systems munitions procurement director Mark McIntyre said: “PMP has proven to be a reliable and strategic supplier in a business where on-time deliveries and the highest quality of manufacturing standards are absolutely critical.

Jobs-saving deal

“BAE Systems is also excited that its offset partnership activities with the Denel Group and others have been a catalyst for positive change and development in South Africa’s defence industry”.

Denel Group CEO Talib Sadik congratulated PMP and BAE Systems on finalising this follow-up contract.

He said that it was a further milestone in ensuring stable financial performance by PMP, and ensured the retention of close to 200 jobs at PMP’s Brass Plant.

Sapa