BAE Systems Land Systems South Africa (LSSA) was a South African defence company that operated as a subsidiary ofBAE Systems Land Systems. On 28 April 2015,BAE Systems announced the sale of its 75% stake in the company to the state-owned defence groupDenel. Denel acquired the stake for R641 million in cash, with the total acquisition costing R855 million after it also purchased the remaining 25% from the company's Black Economic Empowerment (BEE) partner, DGD Technologies.[1] Following the acquisition, LSSA was rebranded asDenel Vehicle Systems (DVS).[2]
The company's origins trace back to the establishment of theOlifant Manufacturing Company (OMC) in 1978.[3] Its creation was a direct response to the mandatory arms embargo imposed against South Africa byUnited Nations Security Council Resolution 418 in 1977. The embargo compelled the domestic defence industry to become self-sufficient, leading to the establishment of OMC to produce theOlifant tank for theSouth African Army.[4]
OMC was soon acquired byReunert and became a division known asReumech OMC. This period marked the company's most prolific phase of vehicle development, driven by the operational demands of theSouth African Border War. TheSouth African Defence Force's initial lack of suitable equipment for the conflict inAngola created an urgent need for advanced and capable armoured vehicles.[5]
After South Africa's 1994 democratic elections and its readmittance to the international community, the company attracted foreign interest. In September 1999, Reunert sold its mechanical defence division to the British engineering companyVickers for between R84 million and R116 million, and the company was renamedVickers OMC.[6]
On 30 September 2002, the British military-industrial firmAlvis plc acquired Vickers' defence interests and purchased a 75% stake in the South African branch, renaming itAlvis OMC.[7] In 2004,BAE Systems purchased the military vehicle division of Alvis, and OMC became part of BAE Systems' Land Systems division, undergoing its final name change toLand Systems OMC.[8]
Under BAE Systems' ownership, LSSA was 75% owned by BAE, with the remaining 25% held by a Black Economic Empowerment partner, DGD Technologies 2001 (Pty) Ltd.[9] Notable shareholders in DGD Technologies included Moeletsi Mbeki, brother of former South African presidentThabo Mbeki, and Diliza Mji.[10]
At the time of its acquisition by Denel, LSSA was organised into three primary divisions.
This division was the core of the company and South Africa's primary military vehicle manufacturer, responsible for iconic vehicles like the Olifant tank,Rooikat, andG6.
This division manufactured specialised geartrain products for military vehicles, as well as for mining equipment, industrial machinery, and traction locomotives.
On 16 April 2008, BAE Systems acquired IST Dynamics, a privately held company owned by the Ethos Group, which became Land Systems Dynamics.[11] Based in Pretoria, the division specialised in developing fire directing systems, remotely controlled turrets, weapon stations, and related fire control subsystems.[12]
The 2015 sale to Denel marked a significant consolidation in the South African defence industry. Riaz Saloojee, then the Chief Executive Officer of Denel, stated, "This proposed acquisition is in line with our company's strategy to broaden our leading land system solutions."[13] The acquisition was finalised in April 2015, transferring ownership of LSSA to the state-owned entity.[1]
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| Joint ventures |
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