Trade and Industry Correspondent

BAE Systems’ South African operation said yesterday it would earn more than R1bn from a new US department of defence order for 600 mine-resistant, ambush-protected vehicles.

BAE Systems Land Systems OMC, through its partnership with General Dynamics Land Systems Canada, was awarded an order for the supply of 600 c ategory 2 RG31 Mk5E vehicles for the mine-resistant ambush-protected vehicle programme of the US Marine Corps Systems Command.

The vehicle is based on an extended version of the RG31 Mk5.

This follows an initial order of 24 (including four prototypes) vehicles that were received in February.

The company said the vehicles would be manufactured by Demmer of Lansing, Michigan, with additional production coming from Land Systems OMC.

The company would earn more than R1bn from the supply of locally built vehicles and royalties on those built in the US. Deliveries would be completed in the first quarter of next year .

Land Systems SA’s GM, Thami Mbele, said the contract would enable the company and its South African supplier network to create and sustain jobs .

General Dynamics said US forces had previously ordered or received 492 RG-31 vehicles, including 309 Mk5s, for the US Army and Special Operations Command. 

With acknowledgements to Thabang Mokopanele and Business Day.