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Johannesburg - Denel was considering its options in selling off Denel Saab Aerostructures (DSA) to the Aerosud group, the defence equipment manufacturer said on Thursday.
"It is too early make announcements on the details of any transaction. There are also a number of conditions - precedents that need to be fulfilled," said Denel CEO Talib Sadik.
He was responding to trade union Solidarity's statement on Wednesday that the sale could lead to more retrenchments at DSA.
Solidarity said it could lead to the fourth retrenchment process in three years.
"The remaining 410 employees are now faced with the uncertainty of a fourth retrenchment process. At least 160 jobs could be affected by the latest retrenchment process," said Solidarity spokesperson Ilze Nieuwoudt.
However, Sadik said "it was too early to predict".
Denel confirmed it had received a "conditional proposal from the Aerosud group relating to Denel Saab Aerostructures, which the company is evaluating and discussing with Aerosud".
Said Sadik: "Denel Saab Aerostructures unfortunately remains a loss-making operation and has not achieved self-sustainability."
A turnaround plan had been launched at DSA, he said.
"The business is still in a turnaround phase and we are making steady progress towards meeting our goals."
He said ultimately they had to ensure the sustainability of the business.
"But I repeat that we are trying to save, and make sustainable, a loss-making business."
Sadik denied Solidarity's allegation that the Denel Group had received R8.82bn in government aid.
"Denel is a state-owned enterprise of enormous strategic importance to South Africa. As such it is funded by government.
"The total amount of recapitalisation during 2006 and 2007 was R3.5bn and another R1.85bn in shareholder guarantees were provided for debt funding."
Solidarity said 485 DSA employees had lost their jobs since 2008 in three retrenchment processes.
"Aerosud has already indicated that if financing is obtained for the transaction, not all of the present DSA employees can be retained," Nieuwoudt said.
She said the transaction could also lead to the possible closure of DSA.
"It is too early make announcements on the details of any transaction. There are also a number of conditions - precedents that need to be fulfilled," said Denel CEO Talib Sadik.
He was responding to trade union Solidarity's statement on Wednesday that the sale could lead to more retrenchments at DSA.
Solidarity said it could lead to the fourth retrenchment process in three years.
"The remaining 410 employees are now faced with the uncertainty of a fourth retrenchment process. At least 160 jobs could be affected by the latest retrenchment process," said Solidarity spokesperson Ilze Nieuwoudt.
However, Sadik said "it was too early to predict".
Denel confirmed it had received a "conditional proposal from the Aerosud group relating to Denel Saab Aerostructures, which the company is evaluating and discussing with Aerosud".
Said Sadik: "Denel Saab Aerostructures unfortunately remains a loss-making operation and has not achieved self-sustainability."
A turnaround plan had been launched at DSA, he said.
"The business is still in a turnaround phase and we are making steady progress towards meeting our goals."
He said ultimately they had to ensure the sustainability of the business.
"But I repeat that we are trying to save, and make sustainable, a loss-making business."
Sadik denied Solidarity's allegation that the Denel Group had received R8.82bn in government aid.
"Denel is a state-owned enterprise of enormous strategic importance to South Africa. As such it is funded by government.
"The total amount of recapitalisation during 2006 and 2007 was R3.5bn and another R1.85bn in shareholder guarantees were provided for debt funding."
Solidarity said 485 DSA employees had lost their jobs since 2008 in three retrenchment processes.
"Aerosud has already indicated that if financing is obtained for the transaction, not all of the present DSA employees can be retained," Nieuwoudt said.
She said the transaction could also lead to the possible closure of DSA.
