Vektor

Vektor is the small arms division of Denel corporation, currently Denel Land Systems.

Denel (Pty) Ltd is a South African government dominated military-industrial and technological conglomerate established in 1991. It was created when the manufacturing subsidiaries of Armscor were split from Armscor in order for Armscor to be solely the procurement arm of the South African Defence Force (SADF), now known as the South African National Defence Force (SANDF), and the manufacturing divisions were grouped together under Denel (Pty) Ltd as divisions.

Denel was established as a state-owned industrial company under the Ministry of Public Enterprises in April 1992. It inherited most of Armscor's production and research facilities, and over 15 000 employees. At the time of its formation, Denel restructured and reorganised the former Armscor subsidiaries into a number of divisions and subsidiaries within five industrial groups: systems, manufacturing, aerospace, informatics, and properties and engineering services.

Denel has developed a number of notable products, such as:

• The Umkhonto vertical launched aerial defense missile.
• Mokopa tandem warhead anti-tank missile, with a range of up to 10km.
• Together with Gerald Bull, the G6 self-propelled howitzer and G5 towed howitzer, the longest ranged guns in their class worldwide, supported with base bleed, VLAP and the advanced fuzing technology.
• the 5th generation A-Darter air-to-air missile, currently in the final phases of development.

The Overberg Test Range is used for advanced aerial testing by NASA, EADS and BAE Systems to name a few.

Though Denel's market share is increasing, it still has not signed significant international contracts that will bring a real market return for its investments in development and research costs. In 2006, Denel signed a contract with the Finnish Navy for the Umkhonto aerial defense missile; this was a significant step, since it was the first significant sale to a western nation. The Swedish defense force was also interested in the Umkhonto missile, but due to budget constraints had to put their plan on hold.

Though Denel has comparable quality products, at lower prices, it has a continuous net loss on income and transition to democracy since 1994 is worrisome to buyers if the state will continue funding this loss. This might be the reason for Denel's most worrisome challenge, being the sale of the Rooivalk attack helicopter, which was developed at a cost of US$1billion and after the losing of a contract from Turkey for $2 billion and other countries only mentioning interest, but no contract coming forth. The sale of the Rooivalk, which could be Denel's most profitable project, also threatens to be its largest loss ever.