South African OMC Quadruples Turnover After BAE Systems’ Acquisition

“Since BAE Systems purchased a major share in the company in 2004, Land Systems South Africa’s annual turnover has quadrupled from 300 million Rand (US$40.6 million) to over 1.2 billion Rand ($120 million) in 2006.” said Johan Steyn, managing director of BAE Systems Land Systems South Africa. New contracts from the US Army and Sweden have helped BAE Systems Land Systems OMC achieve record growth. During the past two years the company has recorded international sales worth 900 million Rand ($121 million), for its mine protected armored and peacekeeping vehicles. The company won two major export contracts for 267 vehicles worth more than 630 million Rand ($85.3 million) including $63 million (453 million Rand) order for 169 RG31 Mk5s and an a follow-on order for 98 RG32M vehicles received from Sweden, worth €21 million ($27.5 million / 196 million Rand), following an initial order for 102 vehicles received from Sweden in 2005.
Through BAE Systems’ re-investment, Land Systems South Africa has strengthened its capacity and capabilities for both local and international customers, expanded its under-roof factory space at the Benoni plant by 20 percent, upgraded facilities, installed new machines at its Gear Ratio plant in Alrode and created about 200 jobs.