http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.53Change: 0.03
R/$ = 12.15Change: 0.00
Au 1174.35 $/ozChange: -0.16
Pt 1084.50 $/ozChange: 5.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 18, 2007

Denel commits to 70% local content for R8bn Hoefyster contract

Back
Contractor|Defence|Denel|PROJECT|Projects|Systems|Manufacturing|Systems
Contractor|Defence|Denel|PROJECT|Projects|Systems|Manufacturing|Systems
contractor|defence|denel|project|projects|systems-company|manufacturing|systems
© Reuse this



The State-owned arms manufacturer, Denel, has earmarked more than 70%, or R5,6-billion, of its R8-billion Project Hoefyster, for local suppliers, Denel spokesperson Sam Basch said on Friday.

Basch said, however, that it was too early to determine what percentage would be allocated to black economic-empowerment (BEE) firms and small, medium-sized and micro enterprises (SMMEs), but indicated that all subcontractors would be required to adhere to government’s guidelines on BEE procurement and SMMEs.

“We still have to negotiate with local suppliers,” he noted.

CEO Shaun Liebenberg and Public Enterprises Minister Alec Erwin announced the contract between Denel and the South African National Defence Force in Cape Town, on Thursday.

In the past, concerns have been raised over how much local suppliers were benefiting from State-owned enterprises’(SOE's) spending, which was making up the bulk of government’s R415-billion investment drive.

Cabinet approved a parastatal supplier-development policy, aimed at maximising the impact of SOE's large-scale capital projects on shared growth, early this year, and has set local procurement as a key performance indicator for SOE executives.

Denel stated that the company, as prime contractor, would manage a supply chain of scores of local subcontractors, which would guarantee local companies business for the next ten years. Some companies would also be guaranteed with follow-on support work.

Denel also said that it would involve numerous South African defence companies and subcontractors, like BAE Systems' South African subsidiary Land Systems OMC. The actual vehicle would be locally built under a Patria license.

The Project Hoefyster contract was the largest deal signed in Denel’s 16-year history and involves the company supplying 250 new infantry combat vehicles for the South African Army.

Armscor would be placing phased orders with Denel Land Systems over a ten-year period.

"Not only does this large defence contract support and give a much-needed injection to local industry, but it also sustains the commercial viability of the businesses, notably Denel Land Systems. Importantly, it will drive the capability of the Denel and other local companies to operate at world-class standards and international best practice," the company said.

Meanwhile, Erwin also said this week that Denel would drive the establishment of manufacturing clusters to boost the local manufacturing industry. The clusters would serve as a catalyst for the transfer of advanced manufacturing technologies and know-how to the broader manufacturing sector, he said.


Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Defence News
The United Nations on Tuesday denied a media report that Sudanese troops held South African peacekeepers in Darfur hostage so Sudanese President Omar al-Bashir could leave South Africa and avoid being arrested to face genocide charges. Bashir, who was due to attend...
More than 800 terrified South African soldiers in Sudan feared the worst when their camp was surrounded by Sudanese troops. "In order to save lives, we would have to have surrendered if they stormed us. One battalion of soldiers without proper weapons could not fight...
Defence Minister Nosiviwe Mapisa-Nqakula addressing 119 young graduates at the Drakensig Military Sport Complex in Limpopo
Acts of ill-discipline amongst members of the SA National Defence Force will not be tolerated, Defence Minister Nosiviwe Mapisa-Nqakula said. “The military is a family unit, where in a war situation the duty to protect life doesn’t lie with you, but with your fellow...
More
 
 
Latest News
Gauteng Premier David Makhura recommitted the provincial government’s support to the revival of Gauteng’s manufacturing base, telling the second yearly Manufacturing Indaba on Tuesday that policymakers would drive legislation that created an environment in which the...
The Competition Commission has reached a settlement agreement with Japanese shipping liner Nippon Yusen Kabushiki Kaisha (NYK) for contravening the Competition Act in the transportation of motor vehicles to and from South Africa by sea. This settlement followed the...
State-owned aerospace and defence technology conglomerate Denel on Tuesday launched a book to demystify defence technology to South African learners and attract them to the defence industry’s career opportunities, while creating greater awareness about innovation and...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
JSE-listed Afrimat will make a cash offer to acquire the entire remaining issued share capital of subsidiary Infrasors that it does not already own.
TEAMWORK Aggreko Europe, Middle East & Africa MD David Taylor-Smith; Aggreko Zambia chairperson Dr. Sixtus Mulenga; Aggreko Africa MD James Shepherd
Temporary power generation services provider Aggreko announced earlier this month that it had appointed Dr Sixtus Mulenga as nonexecutive chairperson of Aggreko Zambia, a move it believed was integral to the ongoing expansion of its operations in Zambia and the rest...
Major global aircraft manufacturer Airbus Commercial Aircraft is maintaining a steady course. "I don't have any big news, good or bad," company President and CEO Fabrice Brégier told international aviation journalists in Toulouse, France, at the company’s recent...
MEASURING DEVICES Bosch has released a mobile app that enables the measurements made with measuring devices to be sent and used directly on the app for accuracy and on-site quoting
Industrial tool manufacturer Bosch has increased the compatibility of many batteries in its range of blue industrial power tools and has released mobile-device applications (apps) for users of the tools, says Bosch South Africa training manager Peter du Bruyn. Many...
The new Nissan Navara has been launched onto the global market, but Nissan South Africa (NSA) will only know in August whether the local Rosslyn plant will assemble the one-ton pickup. The NSA plant currently produces the old NP300 Hardbody one-ton bakkie, as well as...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96