BAE Systems Land Systems South Africa (LSSA) was a South African defence company that operated as a subsidiary of BAE Systems Land Systems. On 28 April 2015, BAE Systems announced the sale of its 75% stake in the company to the state-owned defence group Denel. Denel acquired the stake for R641 million in cash, with the total acquisition costing R855 million after it also purchased the remaining 25% from the company's Black Economic Empowerment (BEE) partner, DGD Technologies.[1] Following the acquisition, LSSA was rebranded as Denel Vehicle Systems (DVS).[2]
History
Origins and Sanctions Era (1977–1994)
The company's origins trace back to the establishment of the Olifant Manufacturing Company (OMC) in 1978.[3] Its creation was a direct response to the mandatory arms embargo imposed against South Africa by United Nations Security Council Resolution 418 in 1977. The embargo compelled the domestic defence industry to become self-sufficient, leading to the establishment of OMC to produce the Olifant tank for the South African Army.[4]
OMC was soon acquired by Reunert and became a division known as Reumech OMC. This period marked the company's most prolific phase of vehicle development, driven by the operational demands of the South African Border War. The South African Defence Force's initial lack of suitable equipment for the conflict in Angola created an urgent need for advanced and capable armoured vehicles.[5]
Corporate Divisions (at time of sale)
At the time of its acquisition by Denel, LSSA was organised into three primary divisions.
Land Systems OMC
This division was the core of the company and South Africa's primary military vehicle manufacturer, responsible for iconic vehicles like the Olifant tank, Rooikat, and G6.
Land Systems Gear Ratio
This division manufactured specialised geartrain products for military vehicles, as well as for mining equipment, industrial machinery, and traction locomotives.
Land Systems Dynamics
On 16 April 2008, BAE Systems acquired IST Dynamics, a privately held company owned by the Ethos Group, which became Land Systems Dynamics.[11] Based in Pretoria, the division specialised in developing fire directing systems, remotely controlled turrets, weapon stations, and related fire control subsystems.[12]
Acquisition by Denel (2015)
The 2015 sale to Denel marked a significant consolidation in the South African defence industry. Riaz Saloojee, then the Chief Executive Officer of Denel, stated, "This proposed acquisition is in line with our company's strategy to broaden our leading land system solutions."[13] The acquisition was finalised in April 2015, transferring ownership of LSSA to the state-owned entity.[1]
External links
References
- Denel finishes acquisition of BAE Systems Land Systems South Africa defenceWeb, 29 April 2015, retrieved 2024-11-17^
- Guy Martin. BAE Systems Land Systems SA rebranded Denel Vehicle Systems www.defenceweb.co.za, 29 July 2015, retrieved 2024-11-17^
- Olifant Mk 1 Armoured Recovery Vehicle (ARV)