THE PARAMOUNT Group has announced its acquisition of the leading armoured vehicle manufacturer, DCD Protected Mobility, for an undisclosed amount.
The company, which claims to be Africa’s largest privately-owned defence and aerospace business, said it would take over certain manufacturing facilities from DCD, as well as its industrial assets and employees.
Paramount chief executive John Craig said the deal would allow the company to increase the production capacity of its armoured vehicle range in South Africa as the demand for its military and internal security vehicles had increased.
“To this end, we explored a number of ways of doing so, and are now pleased to announce that we concluded the transaction to secure the manufacturing facilities, certain assets and selected personnel of DCD Protected Mobility, a Division of the DCD Group. Paramount Group will take effective control of the facilities on April 1, 2015,” the chief executive said.
The group’s executive chairman Ivor Ichikowitz said the new acquisition would allow the company to support the development of the South African aerospace and defence industry.
He said the company would use the new facilities to conduct research and design products that were in demand throughout the world.
“Once fully operational, this facility will be one of the largest armoured vehicle and land forces manufacturing facilities anywhere in the world, with a capacity to scale production to more than 400 units per annum,” he said.
“This will have a significant impact on the supplier base and for the South African economy at large,” he added.
The group said it had been exploring opportunities to complement its combat systems business unit, which had experienced rapid growth due to major contracts signed in recent months.
It said the facilities that existed at DCD Protected Mobility’s manufacturing facilities would be integrated to Paramount Combat Systems to diversify its production and to increase business opportunities and product development.
The group said it had secured a contract to supply the Jordanian armed forces with infantry fighting vehicles. It had landed the deal at the Middle East defence exhibition.
The group added that the vehicles would be manufactured in South Africa and Jordan.
“Paramount Group constantly strives to attract and develop the best talent and technologies in the industry, ensuring that we have the optimum skills and technological base in our organisation to meet the future demands of customers, including the capability to deliver large-scale vehicle programmes across the world,” Ichikowitz said.