29 April 2011 by defenceWeb
State arms acquisition agency Armscor has placed an order for R2.6 million with Denel PMP for more 20mm practice ammunition. Armscor places orders on behalf of the SA National Defence Force, its services, the police and the prison service. The order, placed last Thursday, takes known ammunition orders since 2007 to R488 978 161.84. Of this just R10 million has been for 20mm ammunition. The state arsenal Denel has been the major beneficiary of the orders. In its annual report for FY2008/9, released in October 2009, it said under an entry for subsidiary Pretoria Metal Pressings (PMP) that SANDF ammunition stocks were close to depletion. It added that orders from the military were showing a “healthy increase” after 13 years of “insignificant sales”. The report noted the SANDF was currently spending about R60 million on small (5.56-12.7mm) and medium calibre (20-35mm) ammunition, adding that increasing that figure to R125 million a year was a “management focus” in the year ahead. The October 2010 annual report stated the order value from the SANDF on PMP’s products increased to R130 million in the 2009/10 financial year, with the target for the coming financial year increasing to R160 million per annum PMP employs about 1300 people and serves global defence markets as well as the SANDF, the SA Police Service and the Department of Correctional Services. Revenue for the year to March 201 was R626 million, up from R601 million the year before. Profit was R25 million from a loss of R12 million the year before.