Listed electronic and communications group Grintek is reaping the rewards from the strategic defence procurement package as Swedish group Saab takes a 49% stake in a new Grintek division.
The deal sees Saab and Grintek (a Kunene Technology subsidiary) teaming up to compete in the communications and data network defence sectors.
According to Sapa reports, Saab will take a 49% stake in a new Grintek division to be named Grintek Communications Systems. The new division will be formed through the amalgamation of Grintek Comms and Grintek Electronics Systems.
Grintek places combined turnover as a result of the partnership at R320 million, compared to the R200 million shown previously.
Grintek says the new partnership is a result of the previous working relationships between Saab and Grintek on the Swedish Air Force`s Gripen advanced fighters.
As part of the project, Grintek supplied the core components of the Gripen pilot`s essential communication system in a contract worth $4.3 million.
Grintek says the new Saab partnership will create 250 highly skilled jobs in the short-term. This number is expected to grow as the new company leverages off Saab`s global contacts and enters new markets.
Grintek chairman Zoli Kunene says of the deal: "This is an important step in integrating SA`s best technological skills and capabilities into the global industry. It is a further indication of how the strategic defence procurement programme can secure and expand the role of SA`s most modern industries internationally."
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