Denel (Pty) Ltd2006-09-14 09:23:41
Competition Authorities Give Green Light for New Aerostructures Company
South Africa's Competition Authorities today (13 September) gave the green light for the new aerostructures joint venture agreed by Saab AB of Sweden and South Africa's Denel in June 2006.
The competition authorities said they had no objections to the formation of the venture, which is to compete in international markets for design, manufacturing, and assembly orders in the civil and defence aerostructures fields. The agreement to form the new company was signed in Stockholm by Minister of Public Enterprises, Alec Erwin on behalf of the South African Government, Denel CEO Shaun Liebenberg and Saab's CEO Ã…ke Svensson.
Denel Aviation's aerostructures unit contributes its new and existing capital equipment, current client base, and design and manufacturing capacity to the partnership. Saab Aerostructures provides skills and experience in transformation, marketing, and management, its international reputation for producing quality on time and to cost, and its global customer relationships.
This new South African aerostructures company is the first newly formed partnership to emerge from state-owned aerospace and defence manufacturer Denel's restructuring process. Saab is to assume responsibility for the running and performance of the new entity.
Saab provides an investment of R66-million over the first two years, ongoing skills and technology transfers, as well as management and market access. Denel will invest proportionately to its ownership. The new aerostructures company will initially be 20% owned by Saab and 80% by Denel.
It will begin operations with about 600 staff from Denel Aviation and will be led through the transformation process by a team of specialists deployed from Saab Aerostructures in Sweden. The turnover will initially be approximately R200-million and is expected to grow significantly over the first years.
Besides employees deployed on two and three year contracts to South Africa, Saab will also provide specialists on shorter term secondments to assist in technology and skills transfers to the new aerostructures company. Groups of South African employees will spend time working with and learning from their colleagues at Saab Aerostructures' Linköping factory. The new company's structure mirrors that of Saab Aerostructures, which assumes a support obligation for its South African counterpart.
The new South African aerostructures company will be responsible for delivering on Denel's current contracts with a number of international aerospace manufacturers. Its current order book includes work on the Gripen, Airbus A400M, Agusta, and Hawk programmes for the South African Air Force, as well as for Boeing. At the same time, a significant marketing effort is already underway to attract new civilian and defence aerospace business.
South Africa's Competition Authorities today (13 September) gave the green light for the new aerostructures joint venture agreed by Saab AB of Sweden and South Africa's Denel in June 2006.
The competition authorities said they had no objections to the formation of the venture, which is to compete in international markets for design, manufacturing, and assembly orders in the civil and defence aerostructures fields. The agreement to form the new company was signed in Stockholm by Minister of Public Enterprises, Alec Erwin on behalf of the South African Government, Denel CEO Shaun Liebenberg and Saab's CEO Ã…ke Svensson.
Denel Aviation's aerostructures unit contributes its new and existing capital equipment, current client base, and design and manufacturing capacity to the partnership. Saab Aerostructures provides skills and experience in transformation, marketing, and management, its international reputation for producing quality on time and to cost, and its global customer relationships.
This new South African aerostructures company is the first newly formed partnership to emerge from state-owned aerospace and defence manufacturer Denel's restructuring process. Saab is to assume responsibility for the running and performance of the new entity.
Saab provides an investment of R66-million over the first two years, ongoing skills and technology transfers, as well as management and market access. Denel will invest proportionately to its ownership. The new aerostructures company will initially be 20% owned by Saab and 80% by Denel.
It will begin operations with about 600 staff from Denel Aviation and will be led through the transformation process by a team of specialists deployed from Saab Aerostructures in Sweden. The turnover will initially be approximately R200-million and is expected to grow significantly over the first years.
Besides employees deployed on two and three year contracts to South Africa, Saab will also provide specialists on shorter term secondments to assist in technology and skills transfers to the new aerostructures company. Groups of South African employees will spend time working with and learning from their colleagues at Saab Aerostructures' Linköping factory. The new company's structure mirrors that of Saab Aerostructures, which assumes a support obligation for its South African counterpart.
The new South African aerostructures company will be responsible for delivering on Denel's current contracts with a number of international aerospace manufacturers. Its current order book includes work on the Gripen, Airbus A400M, Agusta, and Hawk programmes for the South African Air Force, as well as for Boeing. At the same time, a significant marketing effort is already underway to attract new civilian and defence aerospace business.
For more information contact:
PO Box 8322
Centurion
0046
South Africa
Tel: +27 12 671-2700
Fax: +27 12 671-2793
