20 July 2011
South African state-owned arms manufacturer Denel looks to be back on the profitability track, with confirmed contracts in its order book already exceeding R21-billion, and prospects to the value of R44-billion currently being pursued.
Zwelakhe Ntshepe, Denel’s group chief executive for business development, said the company’s confirmed work includes the South African National Defence Force’s contract, Project Hoefyster, for the delivery of a new-generation infantry combat vehicle.
He said the firm’s prospects in the pipeline would significantly strengthen its turnover and contribute to the turnaround process at the country’s largest manufacturer of defence, security and aerostructure products.
Earlier this month, Denel released its results, showing a net profit of R111-million for the financial year ending March 2011 – a return to the black for the first time since 2001.
Ntshepe said contracts of about R5-billion were concluded shortly after year-end, including the largest export order ever secured in Denel’s history.
The company intends to grow the opportunities to R70-billion and ensure the conversion of at least R21-billion of this into confirmed orders over the next three years.
In the coming year alone, contracts to the value of R14-billion will be confirmed.
Denel’s primary mandate is to provide strategic defence technology, products and services to the South African National Defence Force.
Source: City of Johannesburg