Spain’s armed forces have recently placed a wide range of orders for vehicles, radios, ammunition, and other supplies and services, which are worth about EUR 250 million (currently $363 million) taken together.
In September 2005, “South Africa’s Denel Forced Into Strategic Shift” examined the changed business landscape for the firm, which was suffering from the collapse of its domestic arms market as a source of guaranteed funding, and a flood of red ink on its balance sheet. The turnabout has been slow, but the firm’s leadership has made it clear that global alliances and sub-contractor status, with a prime role in its domestic market, is the way forward for them.
One of the product groups Denel has always been known for is its artillery systems, which may be the best in the world. Their accurate G6 155mm howitzers continue to outrange all competitors, and the base-bleed ammunition technology they pioneered has become a widespread option for countries looking to extend the range of their existing artillery systems. Industrial partnerships with Rheinmetall and Diehl BGT Defence of Germany have led to orders to supply Germany’s 155mm howitzer and 120mm mortar ammunition, and partnerships have also been explored with General Dynamics in the USA.
Despite their difficulties winning international sales with a superior product, Denel isn’t quite ready to give up its artillery system crown jewels just yet. On the ammunition front, however, business partner Rheinmetall’s move to combine the 2 firms’ customer coverage and technologies has met with a warmer reception.
Some of the most famous and respected combat aircraft in Israel’s Cheyl Ha’Avir have never shot down an enemy plane, and never dropped a bomb. The C-130 Hercules (“Karnaf” or Rhino to the IAF) achieved fame by being the transport that carried Israeli troops into the heart of Africa, during the dramatic hostage rescue at Entebbe. Their 8 C-130E aircraft have been refurbished and given C-130H wings, and are up for sale. The remaining 10 aircraft, which include 4 KC-130 dual-role aerial refuelers, retain their customary roles.
Israel Aerospace Industries (IAI)’s Bedek Aviation Group has signed a 9 1/2 year contract with the Israeli Ministry of Defense (IMOD) to provide “comprehensive and continuous maintenance services to the Israel Air Force (IAF) Heavy Transport Aircraft Wing,” which is to say its C-130s, and possibly some of Israel’s 14 707-300 “Re’em” (Oryx) and “Phalcon” (AWACS variant) aircraft. IAI estimates that the total full value of these maintenance services could reach $170 million. Services will begin at both the IAF’s base and Bedek’s facilities, but eventually tall services will be provided on base. The base was not specified, but according to Scramble all IDF C-130s and 707s are based at Ben-Gurion/Lod, near Tel Aviv. IAI release.
