Local armoured vehicle manufacturer Alvis OMC is part of global arms manufacturer BAE Systems following BAE's takeover of its parent company in the UK, Alvis.

The Benoni-based company has changed its name to Land Systems OMC and is now part of BAE's newly created armoured-vehicle manufacturing division.

Land Systems OMC director Khapametsi Maleke said BAE's takeover of Alvis was a big move for BAE as it had never been involved in wheeled vehicles. She said BAE's involvement would help the local company get better access to export markets.

The takeover is not part of the offset agreement coming out of SA's controversial arms deal in which BAE Systems/Saab are the largest contract winners.

Maleke is part of Dynamic Global Defence Technologies, an empowerment group that took a 25% holding in Alvis OMC in 2001 *1, after another UK-based company, Vickers, bought it from engineering group Reunert six years ago.

Vickers was trying to position its self to get a piece of the arms deal. It decided to go ahead with the transaction even when government postponed the buying of new tanks and armed vehicles. Vickers was taken over by Alvis two years ago.

Maleke said the takeovers of its previous owners were part of a consolidation taking place in the international arms industry. She said local arms companies had had a difficult time when SA became a democracy as the budgets of security authorities were cut. This saw them forced to either enter the international market or adapt their technology for civilian use.

Land Systems OMC took the export route and now has sold more than 920 vehicles in 40 countries around the world and makes armoured vehicles for the South African police and military.

Maleke said while it was not an easy transition for the group to sell its vehicles on the global market, it had been relatively successful. As the nature of conflict changed in the world, Land Systems OMC had found a niche for itself in the peacekeeping role, where the demand for mine-protected vehicle had risen, Maleke said.

Land Systems OMC was awarded a R164m contract this year by Armscor for upgrading Casspir MKII mine-protected vehicles for the SA military.

With acknowledgements to Larry Claasen and the Business Day.

*1 DGDT had as three of its shareholders Moeletsi Mbeki (brother of Big Fish 5), Diliza Mji (ANC treasurer-general of the ANC in kwaZulu-Natal) and M.S. (Seth) Seth Phalatsi, Armscor Chairman for a day until caught with his snout deep in the Strategic Fuel Fund Oil redistribution trough.

He actually admitted to receiving a US$20 000 bribe (about R165 000) cash bribe in May 2000 in connection with an oild deal involving Trafigura, a major international oil trading company and its South African joint venture operation, High Beam Trading International.

See :

http://support.casals.com/aaaflash1/busca.asp?ID_AAAControl=5627

Seth was unceremoniously dumped as Chairman of Armscor after being spotted after a particularly dribbly tribology session at the oil trough, but then was in any case immediately re-appointed as a director of Armscor.

But, wait for it, Minister of Public Enterprises, The Most Honorable Alec Erwin, has just appointed Seth Phalatse's wife, Lorato Phalatse, as a new director of Denel.

If you don't like the enterprise, I've got others.

If you don't like oil, I've got arms.

If you don't like Armscor, I've got Denel.

If you don't like armoured fighting vehicles, I've got main battle tanks.