Subscribe

Tech exchange boosts Denel portfolio

By Cheryl Reddy
Johannesburg, 06 Jun 2006

State-owned defence group Denel`s turnaround strategy includes technology and software sharing partnerships with other countries.

Through sharing technology, the company hopes to strengthen its defence portfolio, which will, in turn, return the company to profitability.

These partnerships will contribute to SA`s skills development, lower the costs of manufacturing and strengthen expertise in areas where there is a lack, the company says.

Last year, Denel CEO Shaun Liebenberg stated the company was not viable in its current state and explained the comprehensive turnaround strategy provided for a R5 billion recapitalisation over the next five years.

Denel has established technology sharing relationships with Malaysia, India, several North African and Middle East countries and is in negotiations with Brazil.

Turkish technology

Last week, Liebenberg and public enterprise minister Alec Erwin met with Turkey`s minister of national defence Mehmet Vecdi Gonul in Ankara, to discuss how the two countries could share technology for mutual benefit.

"The South African government sees Denel`s discussions as a good opportunity for the defence industries of SA and Turkey to cooperate and to expand their capacities. Sharing each other`s technology will ensure self sufficiency and strategic independence for both nations," says Erwin.

Denel is remaining tight-lipped about the details of its discussions, saying both countries are still exploring the possibilities of establishing a strategic partnership. It will also not reveal when the discussions about the sharing of technology will be formalised.

Share