http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.18Change: 0.12
R/$ = 10.95Change: 0.08
Au 1239.22 $/ozChange: 4.47
Pt 1367.00 $/ozChange: 4.00
 
 
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 Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Feb 08, 2008

German firm to buy controlling stake in Denel Munitions

Back
Denel Munitions CEO Monwabisi Kalawe contextualises the challenges facing the division and the benefits it stands to gain from the transaction with Rheinmetall. (8/2/08) Editing: Shane Williams
Defence|Denel|Denel Munitions|Rheinmetall Group|Systems|Rheinmettall Denel Munition|Defence Group|Local Aerospace|Systems|North Atlantic Treaty Organisation|Armin Papperger|Lana Kinley|Monwabisi Kalawe
Defence|Denel|Systems||Systems||
defence|denel|denel-munitions|rheinmetall-group|systems-company|rheinmettall-denel-munition|defence-group|local-aerospace|systems|north-atlantic-treaty-organisation|armin-papperger|lana-kinley|monwabisi-kalawe
© Reuse this German defence giant Rheinmetall Group signed an agreement, on Friday, with local aerospace and defence group Denel, which marked Rheinmettal's intention to take a 51% equity stake in Denel Munitions.

Denel group executive Lana Kinley said that it would still be a few months before the deal came into effect as it was still subject to approval from the competition authorities, and was still tied to various suspensive conditions that had to be resolved.

Both shareholders would be contributing to the transaction, however, Kinley did not disclose the amounts. The name for the new consolidated business was likely to be Rheinmettall Denel Munition.

Kinley commented that the transaction was "another step in our [Denel's] turnaround strategy" and that from a financial and operational perspective there had been some improvement, thanks, in part, to equity transactions such as this.

Denel Munitions CEO Monwabisi Kalawe said that the equity partnership had been a "natural progression in the growing relationship" between the two companies.

Kalawe explained that, through the transaction, Denel Munitions would benefit from further market growth in North Atlantic Treaty Organisation countries, consolidation and improvement of production at its operations, transfer of technology and skills development and training.

Kalawe noted that reciprocally, Rheinmettal would gain from Denel's ‘highly reputed' artillery systems, modular charge systems and propellants, and its establishment in South American, Middle Eastern and Far Eastern markets.

The Denel Munition facilities were said to be running at low utilisation levels and this was one of the key drivers of the partnership.
Kinley said that Denel Munitions was currently operating off seven sites with very high fixed costs and that the transaction would see a consolidation of these operations sizing them down to about three sites. When asked about the potential for job losses, Kinley said that the intention was to grow the business, rather than have to retrench employees.

She noted that Denel had not yet concluded its turnaround strategy as it was still a loss-making business and it would take some two to three years before it achieved a "break-even" financial status.

Kinley and Rheinmetall Waffe Munititon president Armin Papperger signed the agreement on Friday in Tshwane.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
SACQSP president Professor Kathy Michell and RICS president Louise Brooke-Smith
Updated 33 minutes ago The South African Council for the Quantity Surveying Profession (SACQSP) and the Royal Institution of Chartered Surveyors (RICS) in London have signed a mutual recognition of professional competence agreement, solidifying the relationship of the two institutions....
Updated 1 hour 30 minutes ago Mali has signed a string of agreements with China totalling about $11-billion, most of it intended to finance two major railway projects linking the land-locked country to the coast, Mali's presidency said. Mali gave few details on the terms of the 34 agreements but...
Updated 1 hour 38 minutes ago Egypt has raised the $8.5-billion it needs to fund a project to expand the Suez Canal, the central bank governor told State television on Monday. Hisham Ramez told Al-Hayat TV that the funds had been raised in just eight days after banks issued investment...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse.   Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June  to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm  Fischer Consortium the  contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...
 
 
 
 
 
 
 
 
 
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