The Defence arm of the Düsseldorf-based Rheinmetall Group continues to expand its foothold in South Africa. Rheinmetall has agreed to buy Laingsdale Engineering (Pty) Ltd of Maitland from the South African company Tellumat (Pty) Ltd of Cape Town. Laingsdale Engineering specializes in developing and producing precision mechanical components. Its 180 employees generated sales in FY 2009 of approximately €10 million.
Assuming certain contractual conditions are met, the takeover is scheduled to come into effect 1 November 2010. The two parties have agreed not to disclose the purchase price.
Rheinmetall Waffe Munition GmbH of Unterlüß, Germany, will henceforth own a 51% stake in Laingsdale Engineering, with Rheinmetall Denel Munition (Pty) Ltd of Somerset West, South Africa, holding the remaining 49% share.
The acquisition adds to Rheinmetall Defence’s expertise in the field of ammunition technology, and promises to increase Group sales volume in South Africa and third countries significantly.
Laingsdale Engineering is a highly successful business with which Rheinmetall has long maintained close ties. The company has focused on precision mechanics for the past 29 years, acquiring special expertise in fuse technology, naval applications and special non-explosive KE ammunition.
Laingsdale Engineering products reflect the company’s unsurpassed expertise in both development and production. Advanced manufacturing techniques assure adherence to the most stringent international quality and safety standards.
Since 2008, the South African corporation Rheinmetall Denel Munition has been jointly owned by Rheinmetall Waffe Munition GmbH of Unterlüß (51%) and stateowned Denel (Pty) Ltd (49%) of Centurion, South Africa. It is the country’s leading supplier of ammunition, producing an extensive array of artillery, infantry and special operations products as well as naval applications. In fiscal 2009, Rheinmetall Denel Munition’s 1700 employees generated sales of approximately €100 million.
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