Denel reaches offset milestone in Malaysia

12 May 2019

Denel has launched the 10th and last offset programme linked to its contract to supply turrets for Malaysia’s AV8 8×8 armoured fighting vehicle (pictured). Source: FNSS

South African company Denel has launched its final offset initiative linked to its contract to supply turrets and associated systems for the Malaysian Army’s AV8 8×8 armoured fighting vehicle (AFV).

Denel said on 10 May that the last offset project features educational courses held in Malaysia by South Africa’s Council for Scientific and Industrial Research (CSIR). The courses are being run for Malaysian Armed Forces (MAF) personnel and participants from the National Defence University of Malaysia (NDUM).

Denel said the inaugural course in radio frequency and “microwave principles in electronic warfare” was attended by 34 experts from the MAF and the academic community. Under the arrangement, CSIR will also provide consultancy services to the NDUM to support the establishment of a centre of excellence in electronic defence capability in Malaysia.

Commenting on the project, Danie du Toit, Denel group chief executive, said, “This serves as an example of what can be achieved with well-designed offset programmes. The experience gained can contribute towards similar future projects to benefit the broader industry in South Africa and open doors for other defence and manufacturing companies to gain footholds in the Malaysian and regional markets.”

The project with the NDUM represents Denel’s 10th offset initiative under the AV8 programme. The other nine projects – featuring collaborative initiatives in commercial and military technologies, education, and research – are under way. Denel said it expects to deliver 100% of its offset obligations totalling EUR342 million (USD384 million) when the project with the NDUM is concluded in 2021.

Du Toit said Denel’s overall offset commitment to Malaysia will deepen research and technology collaboration between South Africa and the Southeast Asian country and benefit Denel “in future initiatives and can contribute to the promotion of the broader South African defence and manufacturing industries”.

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