Armscor ( South Africa ) Armscor ( or ARMSCOR ) , the Armaments Corporation of South Africa ( in Afrikaans : Krygstuig Korporasie van Suid - Afrika , or Krygkor ) is a South African government - supported weapon - producing conglomerate that was officially established in 1968 , primarily as a response to the international sanctions by the United Nations against South Africa that began in 1963 and were formalised in 1967 . Expansion . Armscor oversaw a vast military , industrial and technological empire that consumed tens of billions of dollars . During the 1960s and 1970s , Armscor produced a great deal of South Africa ' s armament as the state faced a tightening UN arms embargo . It was during this time that Armscor contracted with Gerald Bull ' s Space Research Corporation for advanced 155 mm howitzer designs . Atlas Aircraft Corporation . Once established , Armscor absorbed the Atlas Aircraft Corporation . The Atlas Aircraft Corporation of South Africa ( also known as Atlas Aviation ) was established in 1965 to manufacture sophisticated military aircraft and avionics equipment for the South African Air Force , as well as for export . It was also established primarily to circumvent an international arms embargo implemented in 1963 . Denel and Armscor . With the establishment of Denel , the new South African government dominated military - industrial and technological conglomerate , in 1992 , many parts of Armscor ' s missions and functions were changed and redirected . With the establishment of Denel 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 . Growth of South Africa ' s armaments industry in the twentieth century . The development of a domestic arms industry was one of the most significant aspects of the militarisation of the apartheid economy . South Africa ' s arms industry was established with British aid just prior to the Second World War , when training aircraft were assembled locally and the Pretoria branch of the Royal Mint manufactured small arms ammunition ( Cawthra , 1986 : 89 ) . During the war , the arms industry manufactured a substantial amount of basic weaponry for the Union Defence Force and the Allied forces , including armoured cars , bombs and ammunition . After the war , most of the wartime arms factories converted to their pre - war civilian activities . During the 1950s and early 1960s , South Africa relied heavily on arms imports ( mainly from Britain ) . However , South Africa ’ s withdrawal from the Commonwealth in 1961 , and the imposition of a voluntary United Nations arms embargo in 1963 , provided the impetus for a shift towards the establishment of a domestic arms industry . The Armaments Production Board was established in 1964 to control the manufacture , procurement and supply of all armaments for the South African Defence Force ( Simpson , 1989 : 222 ) . The board also took over the Department of Defence ' s workshops and the ammunition section of the South African Mint , and was authorised to co - ordinate arms production in the private sector . By the mid - 1960s , nearly a thousand private sector firms were involved in various aspects of domestic arms production . In 1967 , the UN Security Council passed a resolution calling on all states to stop supplying arms to South Africa . In 1968 , the Armaments Production Board ' s name was changed to the Armaments Board . It was tasked with the procurement of armaments for the SADF and ensuring the optimal utilisation of the private sector for arms production ( Simpson , 1989 : 222 ) . In the same year , the government established the Armaments Development and Production Corporation ( Armscor ) . The Defence Ordnance Workshop and the Ammunition Section of the South African Mint became its first full subsidiaries . Over the next few years , Armscor took over various private sector companies , such as Atlas Aircraft Corporation , and established a number of new production and R & D facilities ( Cawthra , 1986 : 98 ) . In 1973 , the government established the Defence Advisory Council ( DAC ) to co - ordinate the private sector ' s involvement in domestic arms production ( Philip , 1989 : 205 ) . Outside of South Africa . Its United States presence is based in Maryland , although known by the slightly altered name of Armscorp . The " p " at the end of the name was added , within the USA at least , when it was determined that Armscor of the Philippines predated them , both in the USA and worldwide .