Saab Grintek Defence (SGD), a leading South African defense company, has experienced remarkable growth in recent years, with its turnover doubling over the past two years and its order backlog increasing fivefold. This surge in demand for its advanced electronic warfare and self-protection systems has prompted SGD to take strategic steps to expand its production capabilities.
On April 9, 2025, SGD signed a supplier agreement with Omnigo, a prominent electronic manufacturing company, at its Centurion facilities. The agreement, signed by Jan Widerström, President and Managing Director of Saab Grintek Defence, and Trevor Raman, Segment Chief Executive Officer at Reunert Applied Electronics, marks a pivotal moment in SGD’s efforts to meet the growing global demand for its products across air, land, and sea domains.
The supplier agreement is designed to support SGD’s rapid expansion by enhancing its supply chain and production capacity. Widerström explained that the company is facing “exponential demand” from customers worldwide, which has led to the decision to strengthen its supply chain partnerships. “We have taken a decision to grow the supply chain.
This is one important step with Omnigo,” he said, emphasizing the critical role this agreement plays in SGD’s growth strategy. Under the terms of the agreement, Omnigo will provide turnkey electronic manufacturing services to Saab, while SGD commits to specific business volumes for Omnigo, thereby increasing Omnigo’s responsibilities within the partnership. Widerström described the arrangement as a “win-win” for both companies: “They get more predictable sales volumes, more turnover – we get security of supply,” he told defenceWeb.
The partnership between SGD and Omnigo is not new; the two companies have maintained a close relationship for many years. Raman, representing Reunert Applied Electronics, which oversees Omnigo, highlighted the timeliness of deepening this collaboration. “Given instability in global supply chains, now is a good time for Omnigo and Saab to forge deeper partnerships,” he said.
Raman also noted a recent resurgence in defense contracts after a substantial downturn in local defense work over the past seven years. “We’ve seen over the last seven years significant downturn in local defence work but we are now experiencing an uptake in defence contracts. We have a versatile workforce to meet demand,” he told defenceWeb. This renewed activity in the defense sector has positioned both companies to capitalize on emerging opportunities.
Omnigo’s history is deeply intertwined with the South African defense industry. Originally established as Factum Electronics in the 1980s, the company became Omnigo in 1999 through a joint venture with Grintek, which later evolved into Saab Grintek Defence.
In 2015, Omnigo was acquired by the JSE-listed Reunert Group as a wholly owned subsidiary under the Reunert Applied Electronics segment, benefiting from a substantial investment from Reunert. Today, Omnigo specializes in the manufacture of printed circuit board (PCB) assemblies and offers a comprehensive turnkey manufacturing solution. Its services include production design for manufacture (DFM), sourcing and procurement of materials, automated assembly, and the design and industrialization of production and test systems.
Omnigo has established itself as a preferred supplier to companies in the defense and mining industries, making it an ideal partner for SGD’s production needs.
The new supplier agreement specifically covers the manufacturing of components for Saab’s self-protection systems, which are used across air, land, and sea platforms. SGD has a long-standing reputation for producing advanced laser warning and missile approach warning sensors, which are integral to its Land Electronic Defence System (LEDS) for land vehicles and its Integrated Defensive Aids Suite (IDAS) for helicopters, transport aircraft, and combat aircraft.
These systems are critical for protecting military assets from a range of threats, and the demand for such technologies has been a key driver of SGD’s recent growth. With numerous multi-year contracts already in place with international customers, SGD anticipates continued expansion in the coming years, fueled by the global need for sophisticated electronic warfare self-protection systems.
SGD’s operations extend beyond manufacturing; the company is also heavily involved in research and development, creating local intellectual property that is exported to global markets. More than 90% of its products are sold internationally, with exports reaching nearly 20 countries. This global reach is supported by a supply chain that is predominantly local, with approximately 80% of components sourced from South African companies like Omnigo.
This emphasis on local sourcing not only strengthens the domestic defense industry but also ensures greater control over the supply chain—a critical factor in today’s rapidly changing global environment. Widerström stressed the importance of securing the supply chain, noting that the agreement with Omnigo could be expanded further in the future as both companies adapt to evolving market conditions.
The partnership between SGD and Omnigo is a testament to the resilience and adaptability of South Africa’s defense sector. By leveraging Omnigo’s manufacturing expertise and SGD’s innovative product portfolio, the two companies are well-positioned to meet the increasing demand for advanced defense technologies.
As global geopolitical tensions continue to drive investment in defense capabilities, SGD’s strategic decision to expand its production capacity through this supplier agreement ensures that it remains at the forefront of the industry. For Omnigo, the agreement provides a stable and growing stream of business, while for SGD, it secures the reliable supply of critical components needed to fulfill its international contracts. Together, they are poised to make a lasting impact on the global defense landscape.
