Rheinmetall Buying Majority Stake in Denel Munitions

G6 SP Howitzer(click to view full) 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. […]