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Denel works on Turkey ties

Johannesburg - With the visit to Ankara this week of Alec Erwin, minister of public enterprises, and Denel's chief executive officer, Shaun Liebenberg, South Africa is expanding relations with Turkey, notably also in the defence area, Denel said in a statement on Wednesday.

Erwin was meeting Turkey's Minister of National Defence, M Vecdi Gönül, and other legislators as well as officials to discuss issues of mutual benefit, the statement added.

"The growing relationship was really given a new dimension with the visit to South Africa of Turkish Prime Minister, His Excellency Mr Recep Tayyip Erdogan in March last year," Erwin said.

"Both our governments are committed to establishing a strategic partnership built on the similarity in our economic development. Turkey and South Africa seem to be ideal partners in the global arena as we tend not to compete in the same areas."

Erwin said Denel's bid of its Rooivalk for Turkey's attack helicopter requirement was receiving the South African Government's full support.

"The South African government sees Denel's bid as a good opportunity for the defence industries of our two countries to cooperate and to expand their capacities.

"Importantly, we believe in sharing our technology to ensure greater self-sufficiency and strategic independence for both nations," the minister added.

Denel's Shaun Liebenberg said the government viewed Denel as a strategic asset, essential to the country's strategic independence.

Liebenberg said: "In a drive to build Denel's viability and sustainable profitability, we have started a multi-pronged macro strategy to refocus the business.

"An essential part of it is to become South Africa's domestic prime contractor whilst serving as a specialised contractor or sub-supplier to other international defence contractors."

By slotting into the value chain of global defence companies, Denel aims to benefit from transfer of new technology, international best practice and partnering synergy, as well as maximising its own scale of manufacturing, the statement added.

Liebenberg said Denel's manufacturing plants now being converted into niche businesses, each operating independently with own management boards and directors, were attracting interest from equity partners.

Denel was therefore also looking to building closer relationships with Turkish defence companies.

"We are already talking to Turkish industry to collaborate on missiles, artillery ammunition, unmanned aerial vehicles and combat turrets.

"Besides pursuing opportunities for the supply of naval ammunition and mine clearing services, Denel has expertise in transferring technology and erecting manufacturing plants anywhere in the world, which is what we could do here by collaborating with Turkey, if such a requirement exists," Liebenberg elaborated.

"South Africa's military industrial capabilities were established more than 50 years ago. As custodian of the large investment made by South Africa in defence technology over this period Denel is now playing a leading part in the country's advanced manufacturing strategy initiative," the statement added.

"Advanced aerospace manufacturing is a national priority, and we are already reaping the fruits of this policy," Erwin said.

"Whilst Denel's Rooivalk is a state-of-the-art indigenously designed and developed attack helicopter, South Africa - like Turkey - is now a proud industrial partner in new advanced international programmes like the Airbus A400M," Erwin concluded.

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