10 November 2015 by defenceWeb

The Public Enterprises Minister has given Denel a clean bill of health and the announcement of major multi-million Rand contracts adds further credibility but at least some suppliers of goods and services maintain they have not been paid.

According to one supplier, his company’s account with the State-owned defence industry conglomerate is currently 90 days in arrears.

“We also have no commitment as to when the outstanding amount of more than R10 million will be paid,” the disgruntled contractor said, adding there are “at least 20 other suppliers to Denel Dynamics” who find themselves in similar positions.

Last month Public Enterprises Minister Lynne Brown said, in reply to a Parliamentary question, that the acquisition of BAE Systems Land Systems South Africa had not exhausted Denel’s cash reserves.

Natasha Mazzone, opposition Democratic Alliance (DA) party shadow public enterprises minister, who first asked questions about Denel’s liquidity, said: “It appears the extent of the problem is greater than what has been reported and I have written to Minister Brown requesting her to urgently appear before the Parliamentary Public Enterprises Committee to respond to the Denel crisis”.

Among the other 20 companies who still await payment for goods and services are some that have incurred penalties on export contracts.

The newest addition to the Denel stable, now renamed Denel Vehicle Systems (DVS), this week confirmed a R900 million plus contract with NIMR in the United Arab Emirates for the development and supply of N35 (formerly RG35) mine protected vehicles.

The contract, according to a Denel statement, is one of the largest received by the now DVS and previously BAE Land Systems Land Systems South Africa in recent years and will provide work for two of the company’s major divisions for the next 24 months.

“It is one of several contracts awarded to DVS since it became part of Denel earlier this year and further confirms Denel’s leadership role in landward mobility and mine protected vehicles,” Zwelakhe Ntshepe, Denel Group Executive Business Development, said.

Other contracts Denel landward defence has recently concluded include 24 RG-31 mobile mortar platform (MMP) vehicles, assembly of driveline components for NIMR, maintenance and supply of spares for combat and military support vehicles and for components in the new Transnet electric locomotives.

19 May 2015 by Guy Martin - defenceWeb

A new addition to Denel Land Systems division Mechem’s vehicle lineup is the ‘Blesbok’ cargo truck version of the Casspir mine-resistant vehicle, which is in production for Angola.

Three of these logistics variants have been ordered by Angola, which is soon due to take delivery after testing at the Gerotek grounds outside Pretoria. In 2013 Angola ordered 45 Casspir New Generation 2000B vehicles comprising 30 armoured personnel carriers, four fire support vehicles (able to carry two 23 mm cannons or a recoilless rifle), two command vehicles, two recovery vehicles, two ambulances, three logistics vehicles, a water tanker and a diesel tanker.

Mechem General Manager Ashley Williams told defenceWeb that the Casspir has been doing very well, with sales of the new generation Casspir 2000 to Angola and Burundi. Mechem is now waiting on a possible sale to Chad, which could buy a mixed fleet of ambulances and armoured personnel carriers.

Last year Mechem delivered three Casspir ambulances to the United Nations in Mali. Williams said this was an emergency procurement. The wide body ambulance has the same dimensions as the Rinkhals armoured ambulance and can accommodate four lying and two sitting patients plus two medics. The vehicle is fully equipped to treat any operational casualty. Older generation Casspir ambulances were much more confined and could only accommodate two stretchers, one sitting patient and a medic.

The new generation NG2000 Casspirs feature more powerful engines and better manufacturing techniques than their predecessors and can withstand a 21 kg TNG blast under a wheel and a 14 kg blast under the hull.

As part of Mechem’s core business is mine detection it is working on a prototype of a new ground penetrating radar that will be fitted to the Casspir. Williams said the main purpose would be for de-mining, rather than route clearance, and as such the new system would not be competing with DCD Protected Mobility’s Husky system.

Mechem also offers armoured truck cabs. Although Benin was supposed to be the launch customer for the armoured trucks, no sale was forthcoming.

Although not as actively marketed as the Casspir, Mechem is able to supply the ballistically protected Uniscout vehicle with either a Unimog or Tata drivetrain. This vehicle was developed as a joint project with N4 Trucks using the old South African Police Service (SAPS) Scout vehicle body and fitted with a Unimog engine. Mechem presently uses one in Mogadishu.

Another N4/Mechem project resulted in the KF 46 armoured personnel carrier, which is still marketed by N4. Mechem dropped the vehicle in favour of the New Generation Casspir, as the latest model has better blast protection.

One of the more unusual vehicles Mechem uses on its demining projects is the Tapir MPV, a mine and ballistically protected vehicle which was built on a MAN drivetrain. It was developed in the early 1990s for a Special Forces project and intended to be a weapons platform and built such that one can basically bolt on and off any weapon fitted on a container type platform. The project was canned after 1994 and only 14 vehicles were built, with ten sold to the UN for demining purposes while the remaining four being used by Mechem, mainly in Mozambique.

The company also has four armoured/mine-protected graders its uses on its own demining projects. They are fitted with armoured cabs and rippers in front to expose sub-surface objects up to a depth of 400 mm

18 March 2015 by defenceWeb

An indication Denel is moving into areas other than pure defence comes with the announcement of a partnership with Aviation Co-ordination Services (ACS) to provide secure hold baggage screening services at African airports.

A memorandum of understanding signed this week will see Denel, through its recently established Denel Integrated Systems and Maritime (DSIM) division work and co-operate with ACS at airports outside South Africa.

“We are combining the experience, reputation and resources of Denel with the specialist technology and expertise offered by ACS to provide safe, secure and cost effective operational services to airlines operating at African airports,” said Ismail Dockrat, DISM chief executive.

DISM is the newest addition in the Denel stable and was created primarily to partner with other companies in the defence and security sectors where design, management, integration and through-life support of security systems is a priority.

“The agreement with ACS is an opportunity for us to start playing a role in the security arena on the African continent,” Dockrat said, adding it would see what he termed the “implementation of security measures needed at African airports to enable compliance with international standards”.

Hold baggage screening technology is a critical requirement for airlines operating internationally. The African Union has, according to DISM, been keeping pace with ICAO (International Civil Aviation Organisation) and various national civil aviation authorities’ screening requirements.

Juan van Rensburg, ACS chief executive, said the company has more than 17 years of experience in screening hold baggage on behalf of airlines operating to and in South Africa.

“We look forward to exploring possibilities with Denel and rolling out similar services in other parts of Africa. This alliance is the first foray for Denel into the international civil security sector.”

The DISM division housed at Denel Kempton Park campus will manage implementation of the memorandum on Denel’s behalf and together with ACS commence initial assessments in targeted key African markets.

01 July 2014 by Guy Martin - defenceWeb

Specialist Denel division Mechem is about to ship off the first three wide body ambulance versions of its popular Casspir armoured personnel carrier and will deliver them to the United Nations in Somalia.

The United Nations and Angola are the launch customers of the wide body ambulance, the latest version of the Casspir NG2000, development of which was completed in 2012. The United Nations will use the vehicles as part of the Amisom hybrid African Union and UN mission in Somalia.

Ashley Williams, General Manager of Mechem, told defenceWeb that the vehicles would be shipped out within a week. He said the wide body ambulance has the same dimensions as the Rinkhals armoured ambulance and can accommodate four lying and two sitting patients plus two medics. The vehicle is fully equipped to treat any operational casualty. Older generation Casspir ambulances were much more confined and could only accommodate two stretchers, one sitting patient and a medic.

The new generation NG2000 Casspirs feature more powerful engines and better manufacturing techniques than their predecessors and can withstand a 21 kg TNG blast under a wheel and a 14 kg blast under the hull. Various Casspir NG2000 variants are available, including cargo, water, fuel, command and control, infantry fighting, and recovery. To meet customer demand, the vehicles can be fitted with different drivetrains, such as Mercedes or Powerstar South Africa.

Williams said that Mechem was mainly focusing on Casspirs as there is still a big need for them. Mechem also offers armoured truck cabs and two countries are interested in this product at the moment. Benin became the launch customer for the armoured trucks and has also bought Casspir NG2000s.

Because customers often want fast turnaround times on vehicle deliveries, Mechem has decided to keep a small stock of vehicles, with around 15-20 Casspirs as stock on hand.

Williams said an African country has just signed a large vehicle order but the contract is still being finalised. He estimated demand for 50 to 100 Casspirs a year – Mechem sold 50 last year.

17 December 2013 by Guy Martin - defenceWeb

South African defence and aerospace conglomerate Denel says it is well on the way to business sustainability and has highlighted a number of important achievements for 2013, such as the awarding of the Badger production contract, the performance of the Rooivalk in African peacekeeping operations and a R5 billion guided munition contract.

Riaz Saloojee, Denel Group CEO, said that the company’s performance over the last year “has received widespread recognition. At our recent meeting with the Portfolio Committee on Public Enterprises, Members of Parliament spoke with great appreciation about the company’s role in meeting its strategic mandates and the success of our financial turnaround.”

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

Saloojee said some of the year’s greatest highlights include the launch of the Badger, the South African Army’s new infantry combat vehicle, and the first successful deployment of the Rooivalk in active service in support of peacekeeping operations in the Democratic Republic of Congo. Some 2 000 jobs are expected to be created from the Badger vehicle, 238 of which will be delivered to the South African Army over the next decade.

Denel Land Systems is also involved in a smaller project (part of Project Warrior), which involves upgrading the SA National Defence Force’s R4 assault rifles with Picatinny rails, sights and other accessories.

Another highlight was the move into space science, with Denel creating the Spaceteq division. This was inducted as a member of the International Astronautical Federation (IAF) in September. In July 2013, satellite manufacturer SunSpace was incorporated into Denel Dynamics, creating Spaceteq. Denel said that developments are already underway for Spaceteq’s first project, a multispectral, high resolution, earth observation satellite called EO-Sat1 for operation by the SA National Space Agency (SANSA) by 2017.

“We made huge progress with our strategic alliances on missile and guided munition developments with international partners. We signed new agreements for work packages in the aerostructure business and launched an international centre of excellence for MRO work during South Africa’s historic hosting of the BRICS Summit,” Saloojee said of 2013.

Expanding on the guided munitions developments, Tawazun Dynamics, a joint venture between Denel and Tawazun Holdings, was awarded a R5 billion contract by the UAE armed forces for Al Tariq precision guided bombs for its Mirage 2000-9 fighters in November.

Also on the guided munition front, Denel successfully tested its land-based Umkhonto surface-to-air-missile, destroying targets at 20 kilometre ranges during a series of tests in the southern Cape. The Umkhonto SAM system was developed by Denel Dynamics for the SA Navy’s Meko A200 class frigates, and is in service in both Block 1 and Block 2 versions. This ground-based launcher now provides an alternative that can also be used by the SA Army’s for Phase 2 of its Ground-based Air Defence System (GBADS), according to Denel.

On the missile front, Denel Dynamics is working towards final development and qualification of the A-Darter fifth generation air-to-air missile, being developed together with Brazil. The company is also working on the future Marlin missile project, aimed at establishing a common platform for long-range all weather air-to-air and surface-to-air defence.

On the aviation side, Denel Aviation is working on external fuel tanks for the Rooivalk combat helicopter. Denel said that the project was revived about four years ago when most of the Rooivalk development was completed. The external fuel tanks are needed for the Air Force’s long range escort missions where one or two Rooivalks fly alongside other aircraft such as the Oryx to provide protection. The external tanks of fuel add about two additional hours of flying. The manufacture of production tanks for the Rooivalk squadron is expected to be contracted within this financial year as almost all testing has already been done.

Also on the aviation side, Denel this year redelivered two Botswana Defence Force AS350B helicopters after their 12 year inspection and is working on upgrading six SA Air Force C-130 Hercules with auxiliary power units and environmental control systems. Denel Aviation also handed over a Puma helicopter to the Kenyan Air Force after maintenance work.

Denel Aviation earlier this year partnered with Russian Helicopters to provide a local maintenance, repair and overhaul (MRO) facility for Russian Helicopters manufactured rotorcraft. Mi-8/17 aircraft are being catered for, but other models may be serviced at a later date.

On the manufacturing side, Denel Aerostructures received a third multi-million rand contract for the manufacturing of critical parts for the Airbus A400M strategic airlifter. The approximate R157 million contract (over eight years) will see Denel Aerostructures manufacture tailplane components.

Meanwhile, Denel Dynamics continues to support SANParks in the Kruger National Park by providing a Seeker UAV for anti-poaching operations. Mechem also supports anti-poaching operations by supplying dogs and handlers to track poachers.

Denel Pretoria Metal Pressings (PMP) this year commissioned and installed thirteen new CNC machines, worth R13 million, to assist with 30 x 175 mm ammunition production. The new machines will be able to make up to 500 of these rounds a day, meeting the requirements for the Badger vehicle. The requirement is to manufacture a volume of up to 100 000 rounds a year, something that can achieved with the introduction of the new CNC machines.

The development of the ammunition took place in tandem with the development of the 30 mm Cam-gun for the Badger, done by Denel Land Systems. The 8X8 Badger infantry combat vehicle will be equipped with a 30 mm cam-operated cannon and a breechloaded 60 mm mortar, both of which are integrated into the turret variants manufactured by DLS.

Phaladi Petje, CEO of PMP, said the commissioning of the new machines enhances PMP’s capability to export more medium calibre ammunition and to bring in valued foreign currency.

Mechem has also had a busy year, receiving contracts from Kenya and Zambia amongst others for dog training and dogs, which will sniff out explosives.

Saloojee said Denel wants to move from being a good company to a great company. “I have no doubt that we can achieve this if we continue on the current trajectory.” Part of this trajectory is Denel’s plan to grow its revenue to more than R7 billion over the next five years and create an order book more than five times its turnover. Denel is modernising its product offerings as a result, especially in the fields of artillery, unmanned aerial vehicles, ammunition and aviation MRO services.

05 November 2013 defenceWeb

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.

23 July 2013 by Guy Martin - defenceWeb

Denel Dynamics’ Seeker 400 unmanned aerial vehicle (UAV) will fly in October this year, but possibly earlier, the company has confirmed.

Jan Wessels, Denel Group Chief Operations Officer, told defenceWeb that ground testing is currently underway and that the first flight is officially planned for October this year, but may occur sooner. It was originally scheduled for last year, but was delayed due to contracting and certification issues.

Denel’s annual report for the 2012/13 financial year also identifies “complexities with the key subsystems” as another reason for “significant variation in the programme schedule, including a delay of the maiden flight test.”

Nevertheless, Denel said that “significant progress” has been made in the Seeker 400 development programme over the last year and that all hardware manufacturing is completed with system integration underway.

In its annual report, Denel said the projects attached to the development of the Seeker 400 accounted for revenue of R89 million during the last financial year, with investment of R60 million in the Seeker 400.

The Seeker 400 was displayed in mock-up form at the 2010 Africa Aerospace and Defence exhibition. It has an endurance of 16 hours and can be armed with two Mokopa air-to-surface missiles, with a 10 km range. It is able to carry two payloads at the same time, including electro-optical/infrared and radar as well as laser rangefinder and illuminator for target designation. Denel says an electronic surveillance payload is available for the detection and location of radar emitters. Future upgrades will include satellite communications, and sense-and-avoid capability in order to obtain civil aviation certification.

Currently, the Seeker 400 has a range of 250 km, because it uses only line-of-sight communications, but it could be upgraded to use satellite communications, which would allow it to operate at much greater ranges. With the use of the existing tactical ground station (TGS), the range may be extended to 750 km.

Denel Dynamics is executing a production contract for the UAV’s launch customer (which previously operated the Seeker I) and has also attracted strong interest from other potential clients, with most demand expected to come from the Middle East, Southeast Asia and South America. Denel is promoting the Seeker 400 to Seeker II customers, as the new UAV can be flown with Seeker II control stations.

Hungwe

Also on the UAV front, Denel has changed the layout of its Hungwe commercial UAV, which went from a swept wing dart-like layout to a scaled down version of the proven Seeker II. The triangle shaped Hungwe was shown at exhibitions last year, while the new layout first came to light earlier this year. An example of the ‘new’ Hungwe was on display at Denel’s corporate offices yesterday.

This UAV has a wingspan of four metres and a weight of 35 kg. Carrying a 5 kg sensor, it has an endurance of six hours and a direct line of sight range of 100 km. The system’s service ceiling is up to 12 000 ft. The sensor turret accommodates a daylight TV camera and an infrared camera.

Mobility and portability is a prerequisite and the Hungwe’s ground control station will be quick to setup, easy to use, and compact enough to transport in the back of a commercial light utility vehicle. The ground control station comprises a laptop-based two-console unit, with stations for the sensor operator and pilot.

Denel Dynamics believes there is a large market for the Hungwe as it fills a low-cost market niche – demand could be five times that of the Seeker II. Local applications range from anti-poaching, cable theft prevention and police monitoring.

Like the Seeker 400, the Hungwe is also funded by Denel. Wessels said Denel is pushing the UAV as it believes there is a large market for civil UAVs, which are much cheaper than their military counterparts. Denel Dynamics is targeting Hungwe production by April 2014 at the latest.

20 June 2013 by defenceWeb

The loss of a multi-million Rand contract as a result of South Africa’s withdrawal from the A400M programme has been successfully re-negotiated thanks to the ability of a Denel Group company to deliver on time and within budget in the high-tech composite manufacturing sector.

Denel Aerostructures (DAe) was this week given its third work package on the new generation Airbus airlifter after completing initial design of tail plane detail parts.

“Manufacturing was placed on hold following South Africa’s decision to cancel its acquisition of the A400M. Airbus Military last year gave the green light for manufacturing which was followed by signing of a re-negotiated agreement for the ribs, spars and sword of the tail plane. This will mirror DAe’s ramped up production of wing to fuselage fairing and top shells,” chief executive Ismail Dockrat said following the official announcement of the contract at the Paris Airshow.

He said the third work package on the A400M placed DAe at “the core of the global aerospace manufacturing industry”.

The new package will see the ribs, spars and sword of the A400M vertical tail plane produced in virtual sterile conditions adjacent to OR Tambo International Airport in Kempton Park.

The 7x2m structure consists of two vertical beams (the spars), 16 horizontal composite machinings (the ribs) and a bottom connecting plate (the sword). All are made from carbon fibre composites, covered by a metallic skin which is added to the internal structure prior to assembly.

“This component is a flight critical part of an aircraft the size of the A400M and contributes to its ability to carry payloads in excess of 35 tons,” Dockrat said.

With relocation of all its operations completed and now under a single roof DAe is confident of even more improved efficiencies and further cost cutting.

“It also positions the company well for future manufacturing work for Airbus and other original equipment manufacturers,” Dockrat said.

DAe has also made what he called “significant investment” in a composite facility. Products ranging from basic aircraft parts through to complex main rotor blades for helicopters can now be manufactured on site. Raw carbon fibre material is bonded, moulded, heated and polished until the required properties are achieved.

DAe’s investment in high-tech composite manufacturing is in line with the international aerospace sector where the move away from metallic structures to advanced materials with superior properties is well underway. Durability, hardness, elasticity and high strength-to-weight ratios are hallmarks of the new composite technology.

Dockrat sees DAe’s move in this area as complimentary to government’s aerospace sector development plan.

24 January 2013 by Dean Wingrin - defenceweb

The South African Air Force (SAAF) has defended the cancellation of its contract with Aero Manpower Group (AMG), a Denel business unit, and has hinted that a new contract may be negotiated.

The long standing contract between the SAAF and AMG provides specialist technical and support personnel who are responsible for the maintenance of a variety of SAAF aircraft at bases across the country. However, the SAAF has given notice to Denel that they will not be renewing the current contract, which terminates at the end of March.

Last week, Denel Personnel Solutions said that as there was no contract or orders beyond March 31 this year, the only option was “retrenchment of the entire AMG workforce”. AMG has held talks with the affected employees at the various SAAF bases and have outlined the plan for their retrenchment.

In response to negative media publicity, the SAAF has reiterated that the termination of the contract was because the contract had been declared irregular by the Auditor General.

Lt Col Ronald Maseko, spokesperson for the SAAF, said that “the contract dates back to a period (1986) where the current governance regime did not exist. Consequent to the Auditor General’s findings in 2009, that the contract does not comply with the Public Finance Management Act and National Treasury Regulations, the SAAF has engaged its strategic partner Denel Aviation in pursuit of an acceptable solution.”

Since then, Maseko notes, the Auditor General has consistently referred to this irregularity and the SAAF’s notice of termination dates back to 2011.

“The termination of the contract, in accordance with a provision stipulated in the contract, places the SAAF in full compliance with the Auditor General’s recommendations and allows the SAAF to develop its strategic partnership with Denel Aviation unhindered by governance irregularities,” Maseko emphasised.

Despite the looming crises which will severely affect the airworthiness of a number of SAAF aircraft, including those in the VIP squadron, the SAAF has not revealed any contingency plans should the contract not be renewed.

Trade Union Solidarity has said that at least 75% of the 523 Denel employees are in the scarce and critical skills band, without which efficient functioning of the SAAF will not be possible.

The VIP transport aircraft operated by 21 Squadron are almost exclusively signed out by AMG personnel and the effects of the contract cancelation will be keenly felt by the President and Cabinet Ministers. Other AMG personnel perform critical roles in workshops and testing laboratories.

Despite the impending crisis, Maseko notes optimistically that the negotiation of a new contract with Denel “can only benefit the development of a vibrant South African aviation industry that is capable of continued support to the SAAF in executing its mandate.”

Even SAAF personnel who work side-by-side with the AMG employees or who fly the aircraft are uncertain of what will happen from 1 April. While it appears that Denel may be going through the legal motions of advising their employees of a possible retrenchment, just in case a new contract with the SAAF cannot be negotiated in time, the affected personnel are going through a trying time.