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Saudi Arabia Offers Opportunities To South African Defence Industry

The SC

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SAMI CEO Dr Andreas Schwer

State-owned Saudi Arabia Military Industries (SAMI) is seeking very close relationships with South African defence companies. “We are ready to invest in the South African defence industry and fund local research and development (R&D),” SAMI CEO Dr Andreas Schwer told Engineering News Online at the Africa Aerospace and Defence 2018 show, at Air Force Base Waterkloof in Pretoria.

“The idea is to jointly develop intellectual property, and open the Saudi Arabian defence market for South African companies,” he said. “Saudi Arabia is the number two importer of defence equipment in the world.”

“We have ongoing negotiations with more than one South African defence company, in terms of acquiring stocks or shares,” he reported. “One is in a very advanced stage and another one is in a medium stage. We hope to sign deals or MoUs (memorandums of understanding) with both by the end of this year and go public with the information.”

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He added that SAMI was also in negotiations with some other South African defence companies to establish collaborative relations and joint ventures (JVs). “Our offering, in terms of collaboration, is, in our view, a unique chance for the South African defence industry to get a substantial stream of funding and a significant growth opportunity through preferential access to the Saudi Arabia market. We do not believe any other country can make such an offer.”

He pointed out that establishing such relationships would benefit employment in South Africa and secure national strategic assets. “With our support they can grow, instead of shrinking.”
One of the South African companies involved in these talks is the State-owned defence group Denel. “We are in close discussions and negotiations with Denel and its shareholder,” he stated. “Numerous options are being discussed.”

The political framework for these offers was established during President Cyril Ramaphosa‘s State Visit to Saudi Arabia in July. During this, the two countries signed an MoU on defence, among other agreements.

SAMI was formally established last year and started operations at the beginning of this year. It will be active in all sectors of the defence industry – space, air, land, sea, electronics, cyber, and so on. Its objective is to be one of the world’s top 25 defence companies by 2030.

It will achieve this by localising 50% of all defence equipment and services acquired by Saudi Arabia. This will be done by means of JVs with international partners. In return for assisting with localisation of their technologies, the international companies will enjoy preferred supplier status with Saudi Arabia for decades to come.

SAMI had already signed a significant number of MoUs with international partners. “These partners will come from all around the world, including South Africa,” assured Schwer.


https://africanews.space/saudi-arabia-offers-opportunities-to-south-african-defence-industry/
 
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I constantly forget about the quite close and developing ties between KSA and South Africa on not only the military level but also many other fields.

For instance Saudi Arabia's ACWA Power inked a deal this summer to invest in renewable energy projects in South Africa, starting with the 100MW Redstone solar thermal power plant in the Northern Cape province.

The South African defence company Paramount Group is also keen to establish production facilities in KSA.

Denel Dynamics and ITEAC Group, a Saudi Arabian company, recently signed a (MoU) last year to jointly market Denel’s Ingwe anti-tank missile to the Saudi Arabian armed forces.

This below also occurred 2 years ago.

$240-million Al-Kharj (KSA) facility to produce top-class artillery
RIYADH: South African President Jacob Zuma, who was on a one-day state visit to Riyadh on Sunday, opened a projectiles factory along with Deputy Crown Prince Mohammed bin Salman.
Both were taken on a tour by Mohamed Al-Mady, head of Saudi Military Industries Corporation. He briefed the visitors on the services and facilities at the new complex.
The complex features nine industrial buildings, each allocated to a specific productivity, such as processing, packaging, assembly and filling, destructive testing and nondestructive testing, heat and surface treatments.
The complex produces military projectiles ranging from shells of medium caliber such as mortar rounds (60mm, 81mm 120mm), artillery shells (105mm and 155mm) and heavy shells such as aircraft bombs weighing from 500 pounds to 2,000 pounds.

Al-Mady said the SR900 million Saudi Military Industries Corporation is a licensed company, which will be operating in alliance with South Africa-based Rheinmetall Denel Munition.
The facility is expected to produce 300 artillery shells or 600 mortar projectiles a day, Al-Mady said, adding that this plant would be managed by 130 engineers and operators.
South Africa-based RDM specializes in the development, design and manufacture of large- and medium-caliber ammunition families and is a world leader in the field of artillery, mortar and infantry systems as well as plant engineering.

Source. Arab News (I cannot yet post any direct links).

South African defence company partners Saudi Arabian counterpart in new factory
South African defence company Rheinmetall Denel Munition (RDM) has helped set up a munitions manufacturing plant in Saudi Arabia in a venture with that country's Military Industries Corporation (MIC), the Saudi Press Agency has reported. According to MIC head Mohammad Almadhi, the establishment of the plant cost some $240-million and it was built under license from, and with the assistance of, RDM. The new factory was opened on March 27 by South African President Jacob Zuma and by Saudi Deputy Crown Prince Mohammad bin Salman bin Abdulaziz. (Prince Mohammad is also his country's Second Deputy Prime Minister, Minister of Defence and chairperson of the board of directors of the MIC). The facility is located at Al-Kharj, in central Saudi Arabia, south of the capital, Riyadh.

The plant will manufacture 60 mm, 81 mm and 120 mm mortar bombs, 105 mm and 155 mm artillery shells and aircraft bombs ranging from 226 kg (500 lb) to 907 kg (2000 lb). It is composed of nine industrial buildings, each with its own specific function, including heat treatment and surface treatment, assembly and filling, processing, packaging and destructive and nondestructive testing. According to Almadhi, the factory has a production capacity of 300 artillery shells or 600 mortar bombs a day. It will be staffed by 130 engineers and operators. He further noted that his company was now able to make many different defence products.

RDM is a joint venture between German defence group Rheinmetall Waffe Munition and South African State-owned defence industrial group Denel and was created in 2008. Rheinmetall holds 51% of RDM and Denel the remaining 49%. RDM describes itself on its website as a company that "specialises in the development, design and manufacture of large- and medium-calibre ammunition families and is a world leader in the field of artillery, mortar and infantry systems, as well as plant engineering". The Middle East is one of its target markets.

Zuma was in Saudi Arabia on March 27 and 28 on a State visit. The aim of the visit was to strengthen political and economic ties between the two countries, including increasing trade and investment.
Consequnetly, one of the members of his delegation was Trade and Industry Minister Dr Rob Davies.

The defence industry was one of the sectors that received special attention. Other sectors highlighted by the South African delegation included agricultural products, agroprocessed goods and services, manufacturing and mineral beneficiation. The involvement of South African companies in construction and engineering in infrastructure development in Saudi Arabia, under the Saudi National Transformation Plan, was also stressed.

"We are very pleased that this State visit will ensure, among other things, continued Saudi private-sector investment in our country's renewable-energy sector in support of the National Development Plan; the South African petrochemicals sector; banking and finance; and tourism infrastructure, as well as Saudi participation as a maritime State in our Operation Phakisa," affirmed Zuma. During his visit he also addressed a meeting of high-level South African and Saudi business leaders. He urged them to set up an entity to promote business-to-business cooperation between the two countries, with the aim of increasing Saudi investment in South Africa and South African exports to Saudi Arabia.

Source: Engineering News (I cannot yet post any direct links).

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This news is around 2 months old nevertheless it has not been posted here until now.

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Very soon these "babies" below will be mass produced.

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It's good to see that we are increasing ties with several African countries. South Africa being a crucial African country (power). Arab world and Africa should cooperate much more. Tremendous potential and we have all the right cards in our hands that other foreigners do not have.



Anyway very exciting news @The SC . Thanks for the share brother.
 

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