Boeing Continues Partnership Strategy With Paramount Group Deal

garyc

garyc

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http://www.defensenews.com/article/20140716/SHOWSCOUT15/307160037/Boeing-Continues-Partnership-Strategy-Paramount-Group-Deal?odyssey=nav|head

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FARNBOROUGH, ENGLAND — In what is the latest move by Boeing to collaborate with a company offering knowledge of an untapped market, the aerospace giant has signed an agreement with The Paramount Group of South Africa.

Under the memorandum of collaboration, the two companies will work to “jointly develop defense and security opportunities in key international markets,” a Boeing statement said. The same statement calls the Paramount Group “Africa’s largest privately-owned defense and aerospace business.”

“Africa is one of the world’s fastest-growing markets for aerospace and defense equipment, and we are very pleased to be partnering with Boeing to combine our various capabilities to better serve our customers in Africa and elsewhere,” Ivor Ichikowitz, Paramount Group chairman, was quoted as saying in the statement.

The companies announced the agreement at the Farnborough International Airshow here.

At first glance, it could appear to be an odd pairing. Boeing is the second largest defense company in the world. The Paramount Group isn’t in the Defense News Top 100 listing.

But the agreement follows a roadmap Boeing has been quietly moving along for the last few years of finding collaborations with smaller producers that can target specific markets and help supplement the American giant’s number of aging defense products.

The deal to work with Saab to design a new aircraft for the US Air Force’s T-X trainer competition was the largest move, but the company has also teamed with Embraer to help market the Brazilian company’s KC-390 transport and, in 2009, with Austrian UAV manufacturer Schiebel.

With this deal, Boeing suddenly has a potential stake in the joint Aerosud/Paramount AHRLAC (Advanced High Performance Surveillance and Reconnaissance Aircraft) program, a multimission ISR/light strike platform that could go after the same market as Textron’s Scorpion jet – but with first-hand knowledge of the African market.

The choice of companies represent something of a “large fish in a small pond” approach for Boeing, but they all represent a way for Boeing to work its way into previously untapped markets.

Speaking last month, Chris Chadwick, the head of Boeing’s defense arm, called global partnerships “the new normal.”

“I think more and more, as we move forward you’re going to see these partnerships and you’re going to see the right joint ventures,” Chadwick said.
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I think Denel has got a drone program, so sure they are keeping a eye on this. Though I do think Denel is more focused on big applications such as the Rooivalk and its guided missiles, which seems to do not badly.
 
Ockie said:
I think Denel has got a drone program, so sure they are keeping a eye on this. Though I do think Denel is more focused on big applications such as the Rooivalk and its guided missiles, which seems to do not badly.
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I have a friend that works for Denel at the Overberg weapons testing range, they are busy with major contracts at the moment - so on the weaponry side Denel are smiling...

I just wonder how much of a threat or competition this is to Denels Aerospace division.
 
Ockie said:
I think Denel has got a drone program, so sure they are keeping a eye on this. Though I do think Denel is more focused being stuffed about on big applications such as the Rooivalk
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FTFY

Denel has huge potential as an aviation company and getting a situation where Paramount Group emerges as an aviation player it could be very good for SA, but Denel needs to get things right and so long as it is under the influence of DoPE it is not going to function properly
 
Ockie said:
I think Denel has got a drone program, so sure they are keeping a eye on this. Though I do think Denel is more focused on big applications such as the Rooivalk and its guided missiles, which seems to do not badly.
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The missile and drone side is handled by Denel Dynamics. The have been going more for agreements with Brazil and the UAE.
 
genetic said:
I have a friend that works for Denel at the Overberg weapons testing range, they are busy with major contracts at the moment - so on the weaponry side Denel are smiling...

I just wonder how much of a threat or competition this is to Denels Aerospace division.
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It is more of an opportunity for Denel and the industry in general
 
genetic said:
Great, thanks for the 5 year old article.
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yes 5 years ago Denel took a massive unjustified bailout from the South African government, is there any evidence to suggest that they will not be calling in another bailout as part of the massive infrastructure programmes that form part of the DPE's current strategies? Any prospects of Denel paying a dividend back to treasury this year? Lets go and dig up Denel's annual statements (I'll look into them in 20 minutes or so and if I spot anything redeeming whatsoever against the proposition that Denel is currently structured to be a target of successive bailouts)
 
Paul Hjul said:
yes 5 years ago Denel took a massive unjustified bailout from the South African government, is there any evidence to suggest that they will not be calling in another bailout as part of the massive infrastructure programmes that form part of the DPE's current strategies? Any prospects of Denel paying a dividend back to treasury this year? Lets go and dig up Denel's annual statements (I'll look into them in 20 minutes or so and if I spot anything redeeming whatsoever against the proposition that Denel is currently structured to be a target of successive bailouts)
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Ok then.
 
Paul Hjul said:
yes 5 years ago Denel took a massive unjustified bailout from the South African government, is there any evidence to suggest that they will not be calling in another bailout as part of the massive infrastructure programmes that form part of the DPE's current strategies? Any prospects of Denel paying a dividend back to treasury this year? Lets go and dig up Denel's annual statements (I'll look into them in 20 minutes or so and if I spot anything redeeming whatsoever against the proposition that Denel is currently structured to be a target of successive bailouts)
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The latest annual report is at http://www.denel.co.za/pdf/Denel_Annual_Report_2013.pdf.

The group's share of profit before tax was R72m (page 159).

They have been making a profit for tha last three years.

They should be doing some deep soul searching and a proper evaluation of the competitive advantage that Denel has to be an aviation player on the continent -especially in this context: http://mybroadband.co.za/vb/showthre...patent-problem
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They do mainly military work. There are relatively few patents lodged in this field due to the requirements for confidentiality and the need to keep trade secrets.
 
Things just got a bit tougher for Airbus IMO. Boeing just happens to sign a deal with an ANC backer
 
looking over the 2012 and 2013 reports right now, also looking at the massive procurement they are taking on PRASA / Transnet ....

damn sure we'll see a bailout request in about 36 months

Lockhead never let their military work be an obstacle to having a mean patent collection that came in quite handy with the merger in the early 90s
 
Lockheed was a large and very diverse company that had been going since the early 20th century. Their patent portfolio included shipbuilding, metal machining, medical devices, IT, optics and a wealth of items related to their civil airliners. Naturally there was a lot of stuff on the military side as well, but no treasure troves of disclosure on the technology inside the F-117 or the SR-71.
 
garyc said:
Lockheed was a large and very diverse company that had been going since the early 20th century. Their patent portfolio included shipbuilding, metal machining, medical devices, IT, optics and a wealth of items related to their civil airliners. Naturally there was a lot of stuff on the military side as well, but no treasure troves of disclosure on the technology inside the F-117 or the SR-71.
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agreed, but it reinforces the point: being a "pure" munitions provider is inherently unsustainable as a corporate plan. On top of which Denel's shareholder compact and mandate requires the company to operate as part of the industrial plan - which includes procurement on the rail rolling stock business

busy with the annual report and nothing so far suggests that Denel is able to get outside of the rut government policy has created for them, but under the circumstances in which they find themselves 2012 is an impressive set of results - but they aren't going to prevent the inevitable ...
 
put differently you don't spend a billion rand in research and not build up a mean patent portfolio (Denel have a patent portfolio but it simply isn't where it needs to be if Denel is ever going to be able to break into a position where the company is delivering a return on the equity invested in the company)
 
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