Denel chasing orders worth R35 billion

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State owned defence company Denel is pursuing orders worth R35 billion and hopes to grow its revenue to more than R7 billion over the next five years, targeting primary markets in Africa, the Middle East, South America and the Asia-Pacific.

The company expects half of its future orders to come from Africa, including within South Africa, and intends to create a long-term order book of more than five times its turnover. Denel has R22 billion worth of contracts to fulfil over the next seven to ten years.

Riaz Saloojee, Denel Group Chief Executive, told the Parliamentary Portfolio Committee on Public Enterprises that the company is modernising its products to give them a global appeal, from artillery, unmanned aerial vehicles and maintenance services.

Denel said it is investing more than R528 million a year in Research and Development which will grow in the coming years with a specific focus in the fields of artillery and unmanned air vehicle production. “Denel is improving its technology base in the field of asymmetrical warfare through the acquisition of specialised armoured vehicle manufacturer, LMT, and the introduction of new missile technology.” LMT is involved in producing Badger armoured vehicles for the South African Army and Denel Dynamics is working on the A-Darter air-to-air missile and Umkhonto ground-to-air missile.

Denel is also investing in skills, spending 3% of its payroll – R46 million – on skills development and bursaries.

“By 2018 Denel will have moved from its current position as a ‘good company’ to be a ‘great company’ and a national asset that all South Africans can be proud of,” said Saloojee, pointing out that the process is underway with restructuring. Over the last year, 11 businesses have been integrated into six divisions, reducing costs.

Revenue has improved by more than 10% and profit grew by R30 million to R71 million in the previous financial year, the company said. The only remaining loss-making unit in the group, Denel Aerostructures, has improved its position by 35%.

Exports now contribute 50% of the group’s revenue, growing from R1 329 million to R1 783 million during the 2012/13 financial year, particularly within the company’s missile and landward defence businesses.

Some of Denel’s highlights over the last year include the redelivery of the eleventh and final upgraded Rooivalk combat helicopter to the South African Air Force in December 2012, the development of the A-Darter, the joint venture on guided weapons with Tawazun Holdings, the opening of the Russian Helicopters MRO facility, the awarding of the 200+ vehicle Badger contract, and supporting counter-rhino poaching operations.

Looking to the future, Denel hopes to fly its new Seeker 400 optionally armed unmanned aerial vehicle later this year and develop the Marlin family of missiles.
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http://www.defenceweb.co.za/index.p...worth-r35-billion&catid=7:Industry&Itemid=116
 
Denel targeting ASEAN decision-makers in Bangkok

With military modernisation programmes for south eastern Asian nations in full swing, Denel is confident its presence at the Thailand Defence and Security Exhibition will bring rewards.

The exhibition opened in Bangkok yesterday and Denel chief executive Riaz Salojee said the presence of the State-owned defence industry conglomerate in Thailand was a good fit to south-east Asia - “one of our primary target markets, along with Africa and the Middle East”.

The Thailand exhibition is the 10th of its kind and more than 400 defence manufacturers from 20 countries are showing the latest in products and technology to potential buyers from the Association of South East Asian Nations (ASEAN).

Denel personnel will build on the strong diplomatic and trade relations that exist between South Africa and ASEAN countries. Both China and India are members of BRICS [Brazil, Russia, India, China and South Africa] and South Africa has good relations with Thailand, Malaysia, the Philippines, Korea and Indonesia, Salojee said.

Earlier this year Denel Land Systems (DLS) entered into a contract with Malaysia to supply a range of turrets and integrated weapons systems for that country’s infantry combat vehicles.

“Apart from boosting the Denel profile in the region it has also emphasised the quality and versatility of products carrying the Denel name,” he said.

One of the DLS products on display in Bangkok is the GA-1 20x80mm multi-purpose automatic cannon. This rapid fire weapon has proven its effectiveness in both landward defence and on helicopters. A naval-mounted version is seen as a deterrent in efforts to combat piracy.

According to DLS, the GA-1 can be effectively deployed alongside its NTW-20 anti-materiel weapon. This is effective for the destruction of high-value targets including vessels, refineries, bunkers and radar installations over a distance in excess of 2 000 metres.

DLS will also be marketing the latest version of its Casspir mine-protected vehicle which, according to the company, sets new standards in protection, power, manoeuvrability and comfort for crew and passengers.

With Denel acknowledged as a global leader in artillery systems and unmanned aerial vehicles (UAVs) as well as contributing to some of the most advanced missile development programmes currently underway, worldwide military attending the Bangkok exhibition will also be able to find out more about the Umkhonto surface-to-air missile. A new version destroyed targets at a range of 20 km during a recent series of tests in the Western Cape observed by local and international experts.
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http://www.defenceweb.co.za/index.p...makers-in-bangkok&catid=7:Industry&Itemid=116
 
Looking to the future, Denel hopes to fly its new Seeker 400 optionally armed unmanned aerial vehicle later this year and develop the Marlin family of missiles.
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Sounds Interesting - I read somewhere that it might be a modular system based on different motor, warhead and seeker sections that could be fitted together for different requirements.

Denel Dynamics is developing new surface-to-air and air-to-air missiles as part of a technology demonstrator programme that is leveraging off its experience with the A-Darter, R-Darter and Umkhonto missiles.

Known as Marlin, the all-weather air defence missile technology programme was unveiled at the 9th biennial LAAD Defence and Security International Exhibition held in Rio de Janeiro, Brazil, last week.

According to Denel Dynamics, the Marlin technology demonstrator programme was contracted by the Department of Defence through Armscor and will result in a missile that is launched at a target in three to four years’ time.

Marlin technology will subsequently be used for Navy, Army and Air Force applications, with synergy achieved due to common subsystems. The missile will use some subsystems and system architecture from Denel’s proven Umkhonto surface-to-air missile and its A-Darter short-range air-to-air missile.

The performance of the missiles from the Marlin programme is expected to be in the latest generation class relevant to each type. Denel expects the Marlin All-Weather surface-to-air missile (SAM) will have a much larger range than typical Infra-Red SAMs.

At the moment South Africa is seeking a partner to reduce risk on the project and elevate it to a full-scale joint development programme. “With that, comes skills growth and industry job opportunity for both parties,” Denel said. “The outcome of collaboration on Marlin will be a Beyond Visual Range (BVR) missile for the two Air Forces and an All-Weather Surface-to-Air Missile (SAM) for the two Navies and Armies.”

Brazil is being courted as a partner nation, notably due to its involvement in the A-Darter programme, which will near completion towards the end of 2014, as the missile is currently entering the qualification phase.

Jan Wessels, CEO of Denel Dynamics, said there is potential to collaborate further with Latin America in the domain of guided missiles, aerospace, defence and high technology in general. “As seen with the A-Darter programme, this type of initiative can sustain and grow industry,” said Wessels.

“Competitive, indigenous, guided missiles design and development capability serves a number of strategic objectives for both South Africa and other advanced developing nations. Locally developed defence products translate into improved technological capability for both countries and create an independent defence capability that is of strategic importance.”

From a South African industry perspective, Wessels remarked upon the absolute synergy between the Brazilian and South African teams in terms of vision, work ethic and technical capability on the A-Darter project. “We look forward to expanding on this through more joint programmes,” said Wessels, who aims to manage his company to become the technology advancement leader in BRICS (Brazil, Russia, India, China and South Africa), and other developing countries.
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Denel developing new missile family
 
Ou grote said:
And yet they've needed billions and billions in bailout money from taxpayers.
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Well .... at least it seems like they are now basically self sufficient?



Revenue has improved by more than 10% and profit grew by R30 million to R71 million in the previous financial year, the company said. The only remaining loss-making unit in the group, Denel Aerostructures, has improved its position by 35%.
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And 10 years down the line there'll be a huge flap and doo-wah about some ZA-manufactured military equipment where it shouldn't be...
 
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