Alec Erwin with Turkey's Minister of National Defence, Mr M Vecdi Gönül
2 June 2006
With the visit to Ankara this week of Mr Alec Erwin, Minister of Public
Enterprises, and Denel's chief executive officer, Mr Shaun Liebenberg, South
Africa is expanding relations with Turkey, notably also in the defence
area.
Minister Alec Erwin whose Public Enterprises portfolio includes Denel was
meeting Turkey's Minister of National Defence, Mr. M. Vecdi Gönül, and other
legislators as well as officials to discuss issues of mutual benefit.
"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," Mr 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."
Minister Erwin who was addressing a media gathering tonight (31 May) 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 co-operate 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 views Denel as a strategic
asset, essential to the country's strategic independence. "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," Liebenberg explained.
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.
Liebenberg said Denel's manufacturing plants now being converted into niche
businesses, each operating independently with own management boards and
directors, are 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.
"Advanced aerospace manufacturing is a national priority, and we are already
reaping the fruits of this policy," Minister 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," Mr Erwin
concluded.
Contact: Sam J Basch
Tel.: (012) 671-2804
Fax: (012) 671-2793
E-mail: samb@denel.co.za
Ms Priya Pillay
Tel.: (012) 671-2764
Fax: (012) 671-2793
E-mail: priyap@denel.co.za
Issued by: Department of Public Enterprises
2 June 2006
