NEWTOWN, Conn. -- The South African National Defence Force (SANDF) remains the primary customer for Denel's FT5 anti-armor weapon.
Limited Export Potential
Although the contractor originally developed the FT5 specifically for South African requirements, Denel also offers the weapon on the international market. However, between the lingering political stigma of South Africa's history and a highly competitive market, the FT5 has yet to make a significant mark in terms of export sales.
What's In a Name?
In September 2008, Rheinmetall Defence completed its acquisition of a majority stake in South Africa's Denel Munitions. Rheinmetall Defence acquired a 51 percent stake in Denel Munitions; the remaining 49 percent stayed with Denel. The company has been renamed Rheinmetall Denel Munition (Pty) Ltd. However, what effect, if any, the Rheinmetall brand is having on Denel munitions sales remains unclear.
Launcher vs. Ammunition Sales
Regardless of the weapon system's market limitations, the Forecast International Weapons Group expects the FT5 to garner at least a few regional export sales.
As the FT5 system employs a reusable launcher, production of new launchers will pale in comparison to the production of ammunition. The contractor may be able to generate new sales through the introduction of enhanced munitions for existing launchers.
