Denel

Denel SOC Ltd
Proprietary limited company
Industry Aerospace and Defence manufacturing
Founded 1991
Headquarters Centurion, Gauteng, South Africa
Area served
 Worldwide
Key people
 Riaz Saloojee
(CEO)
Fikile Mhlontlo
(CFO)
Jan Wessels
(COO)
Products Guided missiles
UAVs
Armoured vehicle turrets
Glide bombs
Artillery systems
Ammunition
Revenue Increase R 3.918 billion (FY 2013)[1]
Increase R 117 million (FY 2013)[1]
Increase R 71 million (FY 2013)[1]
Total equity Increase R 1.17 billion (FY 2013)[1]
Number of employees
 7634
Parent 100% state owned
Website http://www.denel.co.za

Denel SOC Ltd is a South African state-owned aerospace and defence technology conglomerate established in 1991. It was created when the manufacturing subsidiaries of Armscor were split off in order for Armscor to become the procurement agency for South African Defence Force (SADF), now known as the South African National Defence Force (SANDF), and the manufacturing divisions were grouped together under Denel as divisions.

Denel was established as a state-owned industrial company under the Ministry of Public Enterprises in April 1992. It inherited most of Armscor's production and research facilities, and over 15 000 employees. At the time of its formation, Denel restructured and reorganised the former Armscor subsidiaries into a number of divisions and subsidiaries within five industrial groups: systems, manufacturing, aerospace, informatics, and properties and engineering services.[2]

Denel has developed a number of notable products, such as:

The Overberg Test Range is used for advanced aerial testing by NASA, EADS and BAE Systems to name a few.

Though Denel's market share is increasing, it still has not signed significant international contracts that will bring a real market return for its investments in development and research costs. In 2006, Denel signed a contract with the Finnish Navy for the Umkhonto air defence missile; this was a significant step, since it was the first significant sale to a western nation. The Swedish defense force was also interested in the Umkhonto missile, but due to budget constraints had to put their plan on hold.

Though Denel has comparable quality products, at lower prices, it has a continuous net loss on income and transition to democracy since 1994 is worrisome to buyers if the state will continue funding this loss. This might be the reason for Denel's most worrisome challenge, being the sale of the Rooivalk attack helicopter, which was developed at a cost of R1billion [3] and after the losing of a contract from Turkey for $2 billion and other countries only mentioning interest, but no contract coming forth. The sale of the Rooivalk, which could be Denel's most profitable project, also threatens to be its largest loss ever.[3]

Divisions

The following divisions form part of Denel

Associated companies

References

  1. ↑ 1.0 1.1 1.2 1.3 "Denel 2013 Annual Report".
  2. ↑ "Conversion: The Case of Denel". Peter Batchelor (International Development Research Centre). 2006-11-26.
  3. ↑ 3.0 3.1 "What went wrong with Rooivalk?".

External links

Wikimedia Commons has media related to Denel.