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Europe’s defence spending boom is opening up a massive new market for South Africa

The Midrand manufacturer exports the design and the right to make it, and says NATO countries that had no interest two years ago are now in the market.

Europe’s defence spending boom is opening up a massive new market for South Africa

Paramount Group's main export is not a vehicle. It is the right and the means to build one, in the buyer's own country, with the buyer's own workers. The company calls this portable production, and it is why a privately held manufacturer in Midrand is now talking about NATO.

Most defence exporters ship a finished machine and a maintenance contract behind it. Paramount ships drawings, tooling and know-how, and lets a local partner do the welding. The customer gets a factory, jobs and a vehicle it can call its own. Paramount keeps the design and the intellectual property, and about half of each vehicle's content still comes from South African suppliers, armoured glass included. The armoured steel is Swedish and the engines are Cummins.

One design, four factories

The Mbombe 4 is the clearest case. Bharat Forge builds it in India as the Kalyani M4 for the Indian Army, STV Group markets it in the Czech Republic as the M4 Golem, and Azerbaijan makes its own. The larger Mbombe 8 is produced in Kazakhstan as the Barys 8. Vehicles come in left or right-hand drive, and the conversion takes four hours.

Why Europe started shopping outside America

Deon Grobler, who runs Paramount Land Systems in South Africa, put the change in one line at Armscor's Gerotek test track outside Pretoria on Wednesday. “There were no NATO markets two years ago,” he said. “That has definitely opened up. All of a sudden spending has changed completely out of Europe.” European governments are rearming, and spreading their sourcing away from American products as they do it. A company whose entire model is handing over the factory suits a buyer who wants the production at home.

Ukraine is where that model has been under fire. Through its Greek unit, Paramount builds there with the partner MAC HUB, and their MAC OWL is a Mbombe 4 rebuilt around what Ukrainian engineers and soldiers learned in combat. In June Ukraine's defence ministry codified it for service and named it the most highly protected locally produced armoured vehicle in its class, with the thickest side armour in its category and certification against blasts of up to 10kg of TNT. It carries up to ten electronic warfare modules aimed at the first-person-view drones that Grobler says have changed the design brief.

What has not been announced

None of this arrives with a number. Paramount is privately held, publishes no financials, and disclosed no order, no contract value and no named NATO customer at Gerotek. Its own newsroom has said nothing about the event or the claim; the most recent statement there is dated 30 June.

What is on the calendar is a vehicle. A new 4x4 developed with India's Kalyani Strategic Systems, based on the Simha unveiled at Eurosatory in June, is due to be launched at the Africa Aerospace and Defence show in Pretoria in mid-September. Paramount's only South African government order remains the 12 Marshall vehicles it delivered to the police last year.

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