KZN Tech Firm’s R89m Deal

THE MERCURY – SEPTEMBER 2007

Burgeoning Durban based vehicle and aircraft simulator manufacturer, ThoroughTec, has just won its biggest contract ever – a R88.5 million deal with South African arms parastatal Denel.

Under the seven-year contract which was awarded by Denel Land Systems (DLS, ThoroughTec will deliver 60 simulators for the South African Army’s new armoured Infantry Combat Vehicle, the Badger, as well as eight instructor stations. The contract also entails supplying training systems.

“This is a significant deal for us, not just in money terms, but in the publicity stakes. It will draw attention to us and what we do,” said ThoroughTec Managing Director, Robert Letschert.

“Will enable Badger crews to operate this state-of-the-art vehicle to its maximum potential.”

Badger

“Our latest CYBERWAR™ simulators will ensure the SA Army is able to train its Badger crews to operate the vehicle safely and effectively under all conceivable scenarios likely to be encountered in African peace-support and security missions. This new simulator system will augment our CYBERWAR™ – train as you fight, fight as you’ve trained – philosophy,” he said.

“We are particularly proud that ThoroughTec simulators and training systems have again been selected to meet the South African Army’s exacting and uncompromising requirements and we are certain they will enable Badger crews to operate this state-of-the-art vehicle to its maximum potential.”

The company already supplies and supports the SA Army’s simulators and virtual battlefield training systems for the Rooikat Armoured Fighting Vehicle, ZT3-A2, Anti-Tank Guided Missile Vehicle and Olifant Tank Mk2 Main Battle Tank. These are all located at the army’s vehicle training centre in Bloemfontein.

The latest deal comes just months after ThoroughTec delivered the world’s first Articulated Dump Truck (ADT) simulator, which was commissioned at the launch of a nationwide programme to train drivers and operators of heavy construction, earthmoving and mining vehicles and equipment.

“The ADT unit is the first of four training systems being provided by our firm under a multi-million rand contract with the Services Seta and the Contractors Plant Hire Association (CPHA) for the design, development, manufacture and support of a set of simulators and interchangeable cabs representing a variety of vehicles and equipment.

“These simulators have been designed to enable training at an internationally accepted standard. They will support the CPHA and Services Seta in setting professional operating and safety standards for operators of heavy plant hire vehicles and equipment,” Letshcert said.

Thoroughbred Technologies (ThoroughTec) was established a decade ago as Kobitech after a group of defence technology specialists – including Letschert, John Waltham, Keith Duffield and Frank Jacinto – decided to embark on their own venture.

The four directors previously worked at Altech Defence Systems (later African Defence Systems), but when the company was bought by French arms manufacturer Thomson CSF, the new owner was only interested in focusing on defence products.

With just a few thousand rand the four partners captured several niche markets in the toll-road business, simulation industry, electronics signage and electronic surveillance field.

By 2000 – when the company bought out the stake held by its BEE partner Scharbir Shaik – it was turning over R16 million.

“A few years ago we sold the toll-road and the electronic signage and surveillance side of the business, choosing to strategically focus and develop our lucrative simulations business. Looking back, it turned out to be a good business decision, because we now have a turnover of more than R50 million annually in a niche area,” said Letschert.

ThoroughTec designs, develops, manufactures, supports and distributes hi-tech modelling and simulation products and services for the local and international defence industry, and the mining and construction sector in Africa, Australia, North America and Europe.

The firm is experiencing exceptional growth and Letschert says the it is ‘busting at the seams’ at its current manufacturing headquarters in Glen Anil, north of Durban.

We are now looking for a new bigger site for our plant and to house our ever-growing workforce.

The company now boasts a 75 strong staff, but we want to take that up to 100 with ambitions to conquer the untapped export market.

“We have not actively targeted the export market before, but exports stand at about 30% of our business.”