• Inside Labour

    Away with empty rhetoric and slogans - labour needs to focus on real issues, says Terry Bell.

  • Wrap-up: Davos insights

    Alec Hogg speaks about the top three issues at this year's World Economic Forum.

  • Netflix and SA video

    Much of Netflix's potential impact on SA has already been made, says Arthur Goldstuck.

See More

Denel to ramp up aerostructures

May 29 2012 17:01 Sapa

Related Articles

Denel: No orders for Rooivalk

Denel appoints new CEO

Denel gets R700m injection

Gigaba: SOEs to prefer black accountants

Denel targets R44bn in orders

Denel commissions army's defence system


Parliament - Public Enterprises says Denel will use a R700 million injection it received in this year's budget to ramp up the performance of its aerostructures business.

Briefing Parliament's public enterprises portfolio committee on Tuesday, acting deputy director-general Weekend Bangane told MPs that Denel Aerostructures (DAe) would start making profit in four year's time.

Fundamental restructuring of the business was still underway, following a "painful process" of job cuts.

"There is still a long way before we see full light," he said.

DAe's core products include metallic and composite aircraft structures, such as wings, fuselages and fairings.

According to a document tabled at the briefing, "DAe remains in a turn-a-round phase and... will continue to post losses in the short-to-medium term before achieving break-even in 2016/17".

Strategic challenges included revenue growth, competitiveness, and skills development and retention.

Members expressed concern that DAe was too dependent on the Airbus A400M contract it had recently re-negotiated.

"Yes, it's a concern," Bangane conceded.

The department's chief director financial analysis, Vuyo Tlale, later told Sapa that the Airbus contract represented a "ballpark" 80 percent of DAe's business, but could not give exact figures.

"The contract is [DAe's] main one... it's quite substantial," she said.

Earlier, Bangane said DAe had a number of other "small, and sunset" contracts with other manufacturers.

He further called for "focused government support" to involve DAe in procurement around, among others, SA Air Force transport and maritime surveillance aircraft, as well as "regional jet requirements" by SA Express.

It was "not possible to compete unilaterally" without state support, Bangane said.

public enterprises  |  denel



Latest Articles

8 simple ways to earn extra money
6 motivational tips to help you save this year Read More...
Invest for Income
15 Investment Tips for 2015

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Add your comment
Comment 0 characters remaining

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...