Engineering and technology group Grintek has concluded a R7m contract to install its naval warning systems on four of the United Arab Emirates' corvettes.

The system warns the crew of a ship when it is being targeted by a laser- guided weapon. Once the threat is detected, the crew or the ship's automated defence system can take action to neutralise or avoid the threat.

The sale of the system follows the strengthening of Grintek's relationship with Swedish defence group Saab, which took a 49% holding in Grintek subsidiary Avitronics, which developed the system a few years ago.

The deal follows Avitronics winning a R134m contract to supply multi-sensor warning systems to the Malaysian government for its fleet of Sukhoi fighter aircraft in April.

The warning system fitted to the corvettes will be integrated into the vessels' central defence system, or may operate as a stand-alone system.

Apart from developing warning systems for planes and ships, Grintek has also developed similar systems to protect battlefield vehicles.

Grintek launched a new vehicle-based warning system at the African Aerospace and Defence 2004 show. The new system offers battle tanks protection against rocketpropelled grenades, antitank guns, missiles and artillery shells.

Grintek's share price was unchanged yesterday at R1,72.

With acknowledgements to Larry Claasen and the Business Day.