South African private-sector defence group Paramount announced a series of major initiatives on Thursday to strengthen its position in the local aerospace, defence and maritime sectors. Group executive chairman Ivor Ichikowitz told a media briefing that the enterprise had acquired two companies – Aerosud Aerospace and Veecraft – and had set up a dedicated robotics business, Paramount Robotics Systems. The company did not reveal the cost of the acquisitions but did report that it would assign more than R100-million for research and development in the new robotics unit.

“We’re in a tough business, we’re in a highly competitive market,” he highlighted. “Today we have a properly formidable capability in Paramount and in South Africa. ... Our objective is to build a strong African defence industry.”

Aerosud Aerospace was part of the South African private-sector Aerosud group and comprises that group’s military aerospace operations and activities, except for the manufacture of components for the Airbus A400M military airlift aircraft. “The deal is effectively concluded,” explained Ichikowitz in reply to a question from Engineering News Online. “We’re moving the people from the Aerosud site to the Paramount campus. The integration is under way. It’s a very exciting process.” The business will now be called Paramount Aerospace. The two sides are familiar with each other, having worked together before. (Aerosud itself, in which Paramount has a strategic shareholding, continues as a separate company designing, developing and manufacturing parts, components and fittings for Airbus, Boeing and other aircraft manufacturers.)

Paramount previously acquired another local aerospace and defence company, Advanced Technologies & Engineering (better known as ATE), now Paramount Advanced Technologies. Paramount also has the Ahrlac (Advanced High-performance Reconnaissance Light Aircraft) project. The creation of Paramount Aerospace strengthens the group’s position in the military aerospace sector and further consolidates the local industry.

Paramount shipbuilding subsidiary Nautic, in Cape Town, has totally purchased another Cape Town shipbuilder, Veecraft. “This consolidates the [shipbuilding] industry,” he stated. “This industry needs scale.” The two companies complement each other and both brands will be retained. As a result, Paramount can now offer navies vessels ranging in length from 8 m to 90 m and even 100 m. Together, the two businesses have an order book of some R1-billion and annual revenues of about R500-million. Regarding Nautic alone, since it was acquired by Paramount, the shipbuilder’s turnover has increased by 92% and its net profit after tax by 68%.

The Paramount group sees robotics as a key area for future military technological development. The group already has expertise in unmanned air vehicles (in Paramount Advanced Technologies). “We have the competence within the company to make aircraft that fly on their own and collect data on their own,” pointed out Ichikowitz. “We’ve been expanding this into the naval environment.” Nautic has been working on an unmanned surface vessel. The same is currently being done on the land systems side, although this is more complicated. Now, all this expertise is being brought together in a dedicated business unit with the creation of Paramount Robotics Systems. The group believes this company has the potential to be the robotics leader in South Africa.

He also announced that the group was to start manufacturing composite main and tail rotor blades for Russian-built Mil Mi-8/-17 and Mi-24 family helicopters. Huge numbers of these machines were currently in operation around the world and the only source for replacement rotor blades was Russian Helicopters.

Regarding the Ahrlac, it “has performed exactly as predicted,” assured Ichikowitz. “This project is a success.” It was important for the entire local industry because, when production started, there would be up to 300 local subcontractors. He reported serious interest from developed as well as developing countries. “It’s very exciting”. But the company had not yet opened an order book because a manufacturing site had yet to be selected – this had to have a runway able to handle military-grade aircraft. Original hopes that the company could use the runways of Air Force Base Waterkloof (south of Pretoria) had been dashed. A number of options were being considered.