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Mechem

Denel MECHEM had its origins as the Applied Chemistry Unit (ACU) of the CSIR (Counsel for Scientific and Industrial Research of South Africa) tasked with research and development of mechanical and chemical solutions to defence related problems giving way to the name MECHEM. The cessation of the border war in the 1980s saw MECHEM changing its focus from largely R&D to demining and started commercial demining in 1991. MECHEM is a subsidiary of Denel (SOC) Ltd and wholly owned by South African government.

In October 2000 Public enterprises minister Jeff Radebe announced that cabinet had ratified the sale of Mechem to the CSIR for just over 10 million rand. Mechem specialises in mechanical, chemical and electronic research and development while the CSIR, formerly known as the Council for Scientific and Industrial Research, is Africa's largest scientific and technological research, development and implementation organisation. Facilities at Mechem include prototyping, laboratories and workshops and an explosive test range which is used in the development of mine protection and demining techniques. For many years Mechem had been involved in the design and development of mine and ballistic protected vehicles, including the Buffel, the Casspir and the Mamba, all of which are still in service in various countries.

More recently Mechem has diversified into high mobility vehicles for rapid deployment applications, an example being the Bat 4X4 which is marketed world wide. Since 1991 Mechem has also been involved in humanitarian and commercial landmine detection and clearing on a contract basis in Mozambique, Angola and various other countries. Radebe told a press conference at parliament Thursday that Mechem has been struggling for some time now to make its way financially. "However, a great deal of its work, although military related, is located mainly within the research and development arena, and would fit more comfortably within the CSIR environment." The weapons and explosive business units of Mechem will be relocated within Denel Ordnance.

Denel signed a contract with the CSIR on 29 March 2001 for the transfer of the Research and Development portion of Denel's Mechem division. The signing of the contract followed the ratification of the CSIR-Denel Mechem deal by Cabinet in October 2000. CSIR acquires Mechem's R&D business. The humanitarian mine-clearance services developed by Denel will be retained by Denel still under the Mechem name. The R&D competencies and facilities within Mechem are to be transferred to the CSIR as part of the CSIR's endeavors to establish a co-ordinated and integrated defence technology capability. The acquisition will enable the CSIR to develop its landwards defence technology capability through research and development for the army and special forces, research into humanitarian mine clearing and development of land-mine protection for vehicles.

The CSIR planned to expand its technological capability in these areas. Denel, in turn, retains Mechem's humanitarian demining capability in order to focus on securing mine-clearing contracts, especially in neighbouring countries in Southern Africa and internationally. The divesting of the non-core R&D portion of Mechem forms part of the Government's restructuring of Denel. As a state-owned enterprise, Denel will still be undertaking humanitarian mine clearing on behalf of the Government.