New Denel-Airbus agreement signed
Johannesburg - Arms manufacturer Denel Aerostructures and Airbus Military have signed a new agreement on aircraft components for the A400M military transport.
The contract provided Denel with the know-how and capacity to participate in future multinational ventures, Denel group chief executive Riaz Saloojee said on Monday.
The deal was endorsed in Kempton Park earlier in the day in the presence of Public Enterprises Minister Malusi Gigaba.
Gigaba said: "The relationship between Airbus and Denel takes us another step further towards the growth of a fully-fledged South African aerospace industry."
Senior vice president commercial of Airbus Military Antonio Rodriguez-Barberan, said the agreement re-affirmed his company's commitment to South Africa.
"With series production of the A400M ramping up ahead of the first deliveries next year, it is comforting to know that we have a dependable partner in Denel Aerostructures, which can be relied upon to provide top quality work, on-time, and within budget," he said.
Denel Aerostructures produces two major parts of the A400M - the wing-to-fuselage fairing and the top shells, which form part of the mainframe.
Earlier this year, government gave Denel a R700m capital injection.
"This agreement has vindicated (government's) confidence and confirmed the viability and inherent potential of Denel Aerostructures in the years ahead," Saloojee said.
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