PRETORIA, South Africa, June 22 (UPI) -- Military ammunition requirements of South Africa and other countries on the continent will lead to Denel PMP to double its turnover to more than $93.8 million.
The South African company said the doubling will occur within the next five years and that it will begin a plant renewal and equipment modernization programs because of the demand.
"We will also increase our research and development capacity," said Denel PMP Chief Executive Officer Phaladi Petje. "PMP is set to become the ammunition solution partner of choice both in South Africa, across the continent and in any of the markets we are targeting."
The company produces 7.62mm ammunition for AK-47 assault rifles, which are widely used in Africa, as well as 23mm and other ammunition. It has a strong relationship with the South African Defense Force and AMSCOR, the state-owned armaments company.
According to Petje, it is in the process of building a strong relationship with the country's police service.
Earlier this year, the military's defense review highlighted the need for greater self-sufficiency in the provision of ammunition to South Africa's security forces.