African Aerospace and Defence Exhibition
Waterkloof Air Force Base
Centurion
South Africa
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New Global Munitions Company is Established Rheinmetall Waffe Munition GmbH of Germany and Denel (Pty) Ltd of South Africa this week (2 September) concluded the transaction signed earlier in which Rheinmetall acquires a majority (51 per cent) equity holding in Denel’s munitions business. A new company, Rheinmetall Denel Munition (Pty) Ltd, has been established with effect 1 September 2008 in which Denel (Pty) Ltd retains 49 per cent shareholding. This follows an agreement signed between the Düsseldorf-based Rheinmetall Group and Denel in February this year. For the transaction to be finalised, it required approval from the competition authorities and was subject to certain conditions precedent. As part of continuing moves to internationalise its defence technology operations and to expand its market presence as a leading supplier of systems and equipment for ground forces, Rheinmetall looked at the South African munitions entity. At the same time, Denel was considering equity partnerships with major global players for its businesses as a crucial part of its major turnaround strategy. Mr Gero Voss has been appointed as the CEO of Rheinmetall Denel Munition (RDM). Mr Voss is the former Chief Financial Officer of Rheinmetall’s Land Systems business division. Mr Hugo Ivy, with a long career in the Denel Group and who served as the acting CEO of Denel Munitions, has been appointed as the Chief Operating Officer of RDM and Mr Milan Bohacek as the CFO of RDM. Mr Bohacek was formerly with Rheinmetall‘s automotive business in the Czech Republic. “The product range and market penetration of the two companies jointly is complementary, making the transaction a very good match and this will be the basis for the future success of RDM," Mr. Voss said. Rheinmetall is a premium supplier of ammunition for fighting vehicles and infantry weapons as well as propellant systems for large-calibre ammunition. Denel Munitions possesses special expertise in artillery and mortar systems. Whereas the bulk of Rheinmetall business is with NATO countries, Denel Munitions is well established in South Africa, Asia, the Middle East and South America. Rheinmetall and Denel Munitions will in future be able to serve their main markets with a complete portfolio of products. All activities that formed part of Denel Land Systems Western Cape (with plants in the Western Cape province), Naschem (with a plant in the North West province) and La Forge (in Gauteng province) are now incorporated in the newly established Rheinmetall Denel Munitions (RDM). Denel Munitions, with annual sales of around R900 million (€90 million), employs approximately 1 800 employees at the five locations. “With the conclusion of this agreement with Rheinmetall we are seeing further progress in Denel’s turnaround strategy," Mr Talib Sadik, acting Group CEO of Denel explained. “I’m convinced this new company will provide both Rheinmetall and Denel’s clients increased benefits. The parent companies will ensure investment in plant upgrades and world-class technology, whilst also opening up skills development, operational improvements and market access to best serve our clients in South Africa and around the world." The Board of Directors of the RDM will consist of five members of which two are nominated by Denel and the other three by Rheinmetall.
For more information contact: African Aerospace and Defence Exhibition Waterkloof Air Force Base Centurion South Africa |
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