In a major spin-off from the multi-billion-rand arms deal, a South African company has landed a contract to supply sophisticated submarine electronic surveillance equipment to navies around the world.

Avitronics Maritime announced yesterday that it had secured $16 million (aboutR125m) worth of arms contracts as part of the government's Industrial Participation strategy.

The Capricorn-based company teamed up with the German submarine consortium Howaldtswerke-Deutsche Werft (HDW) to build the three new class 209/1400 submarines for the South African navy.

As a condition of the government's strategic defence procurement package, international arms manufacturing companies must source civilian and defence equipment from the South African arms industry.

Avitronics managing director Ben Ash said the company had also secured, through its HDW links, contracts to fit Greek and South Korean vessels.

"We have the operational knowledge, technology and products and are now able to walk through to important international markets."

Ash said export-related business with HDW could see the maritime division of Avitronics secure contracts worth up to R350m over the next decade.

Portugal, Spain, Singapore, Turkey, Brazil and Scandinavian nations are potential clients.

Avitronics is a market leader in radar and missile intercept systems designed to warn a submarine crew of attempts by enemy ships or aircraft to detect the submarine at periscope depth or on the surface - when at its most vulnerable. "These passive systems are central to a submarine's ability to remain undetected," Ash said.

The first of the new submarines is to be delivered to South Africa by 2005 and Ash said the first consignment of electronics would be shipped to Germany later this year.

"This will give us international exposure and recognition and counter the image of being a third-world supplier," he added.

Avitironics Maritime management showed off several of the systems yesterday.

These included a multi-sensor warning system that detects incoming lasers, missiles and radar systems and provides counter-measures.

Branch manager Eddie Noble said the systems were designed to "confuse and take the threat away from vessels".

"We develop radar warning systems that take a snapshot of the environment before the submarine surfaces and detect in which direction there is a possible threat,", he added.

Also on show was a decoy system of a battery of rockets that can be deployed as chaff to mislead incoming rocket fire.

With acknowledgements to Lindiz Van Zilla and the Cape Times.