D Hanekom: South African International Aerospace Symposium

19 April 2007

Distinguished guests,
Ladies and gentleman

Opening remarks

I am honoured to have this opportunity to address this symposium. A special
welcome to our many international delegates. Your contribution towards the
internationalisation of our research and development (R&D) efforts in
aerospace technology is well appreciated. I sincerely hope that your
deliberations at the 2007 SA International Aerospace Symposium will be of value
both to you and your South African colleagues. We at the Department of Science
and Technology (DST) are indeed looking forward to the positive outcomes of
this symposium in furthering international and local research partnerships and
collaboration.

I must therefore assure you as influential researchers and industry
development experts that while you may not be holding this symposium in space,
you have nevertheless chosen a land whose government and its people
passionately understand the central importance of aerospace to the
technological development and advancement of our country. This symposium will
be examining different components of the technology development cycle. This is
important because the identification of areas requiring intervention has to be
informed by an understanding of the entire value chain that translates
innovation to product. Only then can we calculate where it is realistic and
necessary to focus our intervention strategies.

There is therefore no doubting the importance of aerospace to our country
and its growth and development goals. If an aerospace development strategy is
sound and complete and the implementation thereof is targeted and supported, as
all indications confirm, then the benefits include skills development, job
creation, and enterprise creation. This is facilitated by our National System
of Innovation (NSI) which in turn will grow from it. Coupled with the strategic
importance of a healthy aerospace environment to South Africa's regional role
in defence, peace missions as well as safety and security, the development and
nurturing of a sustainable aerospace research and technology competency and
industrial base, is a priority.

South Africa is an important part of the global community and certainly in
technology development this is no different. Hence programmes such as the
advanced manufacturing technology strategy (AMTS) and the European South
African Science and Technology Advancement Programme (ESASTAP) funded partly by
the DST and the European Commission are geared towards establishing a global
footprint for South Africa through strong local foundations.

Advanced Manufacturing Technology Strategy (AMTS)

Our efforts in the manufacturing sector, which includes the aerospace
industry, are guided by the Advanced Manufacturing Technology Strategy. The
development of technology platforms that increase current and create new
competitive advantages; establishing partnerships and human capital development
are the pillar of this strategy. Through this we aim to enhance the knowledge
base and the knowledge intensity of South Africa's manufacturing sector.

In 2006, the Department of Trade and Industry launched the National
Aerospace Centre of Excellence located at the University of Witwatersrand. This
centre was established in recognition of the need to upgrade and reposition the
country's aerospace industry. We are confident that this centre will have a
positive impact on the industry's ability to participate and compete in the
global space arena.

The Aerospace Industry

The Aerospace Industry is characterised by long cycles: if the correct
decisions are made now, often they will pay off in 20 years' time. The
aerospace market is estimated to grow by at least 25% in real terms over the
next 20 years to $250 billion per annum. Towards the end of this period, we can
expect to see the appearance of highly innovative new products, such as
autonomous air combat systems and eco-friendly civil aircraft, all integrated
within a single air traffic management system. There is a world of opportunity
for our country to integrate into the global supply chains dominated by Europe
(Airbus), the Americas (Boeing and Embraer), and the East (India and
Korea).

Growth in air traffic from 1980 to 1999 was around 5,8% per annum and it is
expected to be around 5% by 2020. Closer to home, the growth in African air
traffic is expected to be at least 4% and gauging from the traffic through our
own OR Tambo International Airport, these estimates are probably on the
conservative side. The main question therefore is: How does Africa resolve its
own need for growth and development within this market in a cost effective
manner? The best way of course, is through being part of a global innovative
process of technology development.

If one looks at the United Nations Industrial Development Organisation top
40 product groups in the world, aircraft products are not prominent. In fact,
they are over-shadowed by the automotive, machinery and Information
Communication Technology (ICT) sectors. This tells us that any strategy should
focus on niche crosscutting advanced technologies, rather than adopt a narrow
sectoral approach. This is the approach that AMTS has taken.

We are therefore under no illusion that aerospace is not only an important
industry in its own right, but stimulates growth and innovation in other
industries. In so doing it contributes in many ways to the growth of the
manufacturing sector as a whole. Given its cutting edge technology profile and
use of highly skilled people, like the automotive sector, innovation, process
improvement and international supply chain integration are integral to the
aerospace industry. Focusing on these industries therefore has spin-offs in
many other components of the manufacturing sector and will draw heavily on
advanced materials technologies, advanced product and process technologies,
biotechnology, ICT and electronics.

At the same time, we recognise that extreme demands are placed on the
aerospace industry to achieve acceptable levels of quality, safety and
performance. The work we do and the successes we achieve in these critical
areas will position our aerospace industry, together with local universities
and science councils, strongly in the domain of aerospace technology
development. Key technologies that have been identified to achieve greater
competitiveness in the aerospace industry include advanced electronics,
advanced light materials and advanced production technologies.

A simple case in point demonstrates how we are approaching the development
of aerospace in our country. High performance composites are used extensively
in commercial liners in Airbus and Boeing and increasingly so, they offer
attractive advantages of weight, aesthetics, recycle ability, smartness and
flexibility of design. In 2005, the industry employed around 12 000 people and
used around 30 000 tons of resin with 15 000 tons of reinforcement. The total
value of finished composites goods was R4 billion.

Therefore we approach technological intervention in a targeted and
consolidated manner so as to develop the final high value product. This helps
our design authority and this is also why the AMTS works closely with other
agencies of the Department of Trade Industry (DTI) and the Department of
Defence (DoD), such as the Aerospace Industry Support Initiative.

European South African Science and Technology Advancement Programme
(ESASTAP)

International collaboration is clearly one of the best mechanisms to
leapfrog development in a mutually beneficial and sustainable manner. If we are
to become suppliers of technology and products in a multi-tier market
environment, with design authority, we need to establish these strategic
partnerships. We must understand the technology trends, mitigate the technology
minefields and understand the nature of the science and technologies that will
make us sufficiently world class and attractive. That for us is what this
symposium is about: building partnerships, developing together and sharing best
practice.

ESASTAP and other similar initiatives are central to us realising our own
aims of internationalising our R&D. The appointment of South African
national contact points for the seventh Framework Programme (FP7) has also
enhanced our interaction with potential global partners. We expect to partner
with a number of consortia and submitting funding proposals in these delicate
areas of research in FP7.

Our efforts are aimed at developing, managing and growing networks in
aerospace, comprising industry, government and academic stakeholders. This
network will work together in identifying, developing and implementing
technology and human resource development initiatives with international
partners in order to mutually enhance the competitiveness of the sector.

Opportunities created through this programme are geared towards increasing
the role of South African researchers and exposing them to the vast and
impressive European networks of researchers and to open up access to a share of
the R450 billion FP7 budget for the period 2007-2013. This partnership is based
on competence and excellence. We understand this and have many world-class
technologies to offer when it comes to aeronautics and space.

I understand in the 'FP 6 top up call', South Africa ranked third after
Russia and China in project submissions, but ranked second after Russia in
terms of selected projects. While this is not bad, of course, we want to be
first, and there is no reason why we should not get there. Through strategic
partnerships we have been able to achieve the following:
* In space research, there is close collaboration between the German Space
Agency DLR and CSIR Defence Peace Safety and Security sensors group. As you are
probably aware Russia and SA have an agreement on peaceful use of outer space
and will jointly launch SumbandilaSAT later this year.
* The African Resource Management (ARM) constellation system project is an
African initiative of global co-operation in Astronomy and Astrology
research.
* Airbus and DST have a Memorandum of Understanding (MoU) and are currently
involved in projects at various stages of completion. These include the Sasol
Project ALPHA on Aerospace Synthetic Fuels, and a CSIR project on natural fibre
composite materials. Other important partners such as Boeing are involved with
the CSIR in Semi Solid Metals. Boeing and National Aeronautics and Space
Administration (NASA) collaborate closely with our Satellite Application Centre
and this is set to grow.
* Rolls Royce, the CSIR and the South African Air Force are involved in
Aero-Engine Lifting analysis.

Concluding remarks

We share the concerns about air pollution and safety as articulated in
Europe's 'Vision 2020' for its aeronautics industry. The imperative to reduce
nitrogen oxide and carbon dioxide emissions is one of the critical challenges
facing the industry, especially in the light of the threat of global climate
change.

Air traffic management and accident avoidance are of utmost importance to
us, especially with the FIFA 2010 Soccer World Cup taking place on our shores.
Of course we would like all of you back in 2010, but we would prefer it if you
arrive alive! The next few years hold a host of exciting opportunities for
South Africa to develop a more comprehensive and world-class aerospace industry
through the development of strategic partnerships and the assimilation of
world-class technologies.

We welcome the challenge of making the interventions succeed, through
collaborations, careful planning, mobilisation of resources and efficient and
effective delivery. The key to success remains partnership: joining our efforts
in overcoming these challenges and building a competitive aerospace sector, for
the benefit of the people of our country, the African continent and the
world.

Have an insightful and enjoyable symposium. Lots of effort has been put into
this event, let's get the best out of it. May the words of Herbert Hoover (US
mining engineer and politician, 1874-1964) inspire you in your deliberations
over the next two days:

"Engineering is a great profession. There is the satisfaction of watching a
figment of the imagination emerge through the aid of science to a plan on
paper. Then it moves to realisation in stone or metal or energy. Then it brings
home to men or women. Then it elevates the standard of living and adds to the
comfort of life. This is the engineers' high privilege."

Thank you for your attention.

Issued by: Department of Science and Technology
19 April 2007