During the year Reutech Communications’ radio manufacturing plant was relocated to larger, refurbished premises in New Germany, Durban, ahead of the production of new-generation ground-based radios for the SANDF. The SANDF funded the development of this new product line, which contributed significantly to revenues in 2011.
We continued the supply of V/UHF communications equipment to the SANDF, an important source of revenue.
The first orders for the new radios are expected in 2012 andwill support the operation of the production facility for between seven and ten years. The investment in New Germany has the capacity to comfortably meet the requirements of this contract while also exploiting the market potential of other productionfor the SANDF.
Exports of airborne radios comprised more than half of Communications’ revenue in 2011; however, a major export order was postponed until late in the year and will only be reflected in the business’ results in 2012. A new airborne radio being developed to replace the ACR500 product range is expected to open new markets.
As part of its efforts to balance its exposure to the military and retail markets, Reutech launched a new venture, E-Track, to develop and market radio frequency identification (RFID) technology. This is set to become an important market for the business. Additionally, we are investigating using our expertisein military radio systems to develop a broadband radio systemfor the mining industry.
Diversifying tried and trusted military systems and solutions into commercial applications will be a key future focus of both Reutech Communications and the entire Reutech business. |
